Saudi Arabia’s first defense-focused venture capital fund, after the Houthis’ advance in Yemen, has accelerated investment in maritime technologies.
Lucien Ziegler, a main partner of the fund Manufactory Ventures, told Reuters that the fund has asked Saudi Arabia’s Capital Market Authority to increase its capacity from $100 million to $150 million. He said, “The maritime domain is undoubtedly a priority and we are accelerating it right now.”
The fund’s focus is on automated systems, including aerial drones and unmanned surface and underwater vessels. Manufactory Ventures has targeted three operational joint investments and six equity investments this year, and it has supported a joint investment between the local company SR2 and the U.S. drone maker Vector Defense.
Ziegler said, “Now drones and air defense matter more than anything. The events of the past week underscored this need.” Saudi Arabia in recent weeks has been targeted by attacks by groups backed by the Islamic Republic of Iran, which threaten its oil exports.


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