Jada Fund of Funds

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A government-backed fund-of-funds program designed to develop Saudi Arabia’s private equity and venture capital ecosystem.
What are the main aims and objectives?

Jada Fund of Funds aims to increase the availability of risk capital for small and medium-sized enterprises (SMEs) in Saudi Arabia by investing in private equity and venture capital funds. Launched as part of Vision 2030, its main objective is to strengthen the SME sector, contribute to job creation, stimulate non-oil economic growth, and build an active and sustainable investment ecosystem by raising standards among local fund managers and attracting foreign investment. The program specifically addresses local challenges such as limited access to growth-stage funding and a lack of institutional investor confidence.

How does the program work?

Jada Fund of Funds operates as an intermediary investor, allocating capital to externally managed private equity and venture capital funds that focus on Saudi SMEs. The company does not invest directly in businesses but instead deploys a portfolio approach to support a wide range of funds—covering early-stage startups to growth-stage firms—across diverse sectors in the Kingdom. Jada conducts a thorough selection and due diligence process, choosing fund managers who demonstrate strong governance, sector expertise, and a track record of responsible investment.

Jada’s investment criteria focus on both commercial viability and alignment with national priorities, such as job creation and industrial localization. Each chosen fund manager receives strategic support, including guidance on best investment practices, reporting requirements, and risk management. The support aims to improve managers’ ability to raise additional capital from domestic and international sources. Jada periodically hosts events, participates in sectoral conferences, and provides learning opportunities to elevate the investment standards in Saudi Arabia.

Eligibility for receiving investment through Jada is primarily based on a fund’s demonstrated capacity to serve Saudi SMEs, its governance standards, and its alignment with the long-term development vision of the country. Jada’s involvement helps to diversify funding sources for SMEs, reduces the risk for individual funds by spreading investments, and encourages international investors to enter the Saudi market.

As of June 2023, Jada had made commitments to 29 investment funds, which collectively supported over 453 SMEs and generated more than 10,500 jobs. The model harnesses the leverage of private sector capital, supplementing public financing to maximize impact. Jada also provides ongoing oversight and reporting, ensuring transparency and accountability across its portfolio. The mechanism is commercially operated under the supervision of the Public Investment Fund, with continued alignment to broader Ministry of Commerce goals and Vision 2030 benchmarks.

What is the overall cost?

Jada Fund of Funds was launched with an initial capital of SAR4 billion (approximately USD1 billion) by the Saudi Public Investment Fund. By June 2023, Jada had committed SAR2.6 billion (roughly USD693 million) to investment funds, with SAR914 million (about USD244 million) invested to date through these funds.

How was it implemented?

Jada Fund of Funds was established by a Council of Ministers resolution in 2018 as part of Saudi Arabia’s Vision 2030 development strategy. The Public Investment Fund (PIF) was the primary agency tasked with its design and oversight, working closely with the Ministry of Commerce to articulate the program’s aims and operational model. Implementation required recruiting a specialist team with experience in private equity and venture capital, focusing particularly on professionals familiar with international best practices and local market needs.

Initially, Jada developed a comprehensive fund manager evaluation framework, which included benchmarks for governance, sector expertise, and alignment with economic diversification goals. The program launched its first investments in early-stage fund managers in 2019, and by June 2023 had committed capital to 29 funds. It established robust monitoring and reporting systems from the outset, including annual performance reviews, impact assessments, and stakeholder consultations.

Jada’s leadership includes senior managers from PIF with extensive backgrounds in finance, investment, and regulatory frameworks. Their hands-on approach ensured that the implementation was consistent with both Saudi market needs and global standards. Key milestones include its first major fund commitments in 2019, expansion into private credit in 2024, and participation in regional investment conferences by 2025. The program has evolved by adapting its investment criteria and governance practices in response to feedback from fund managers and policymakers.

What impact has been measured?

By June 2023, its investments had supported 453 SMEs and generated 10,567 jobs. Total capital deployed through Jada’s managed funds reached SAR914 million (USD244 million), complemented by substantial additional private investment. Jada expects to contribute SAR8.6 billion (USD2.3 billion) to national GDP and create around 58,000 new jobs by 2027, as outlined in its projected targets.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom