Saudi Arabia’s venture builder BIM Ventures and Japan’s SBI Holdings will launch a $100 million joint investment fund to support start-ups in the kingdom.

BIM Ventures signed a memorandum of understanding (MoU) with SBI Holdings, in collaboration with the kingdom’s Ministry of Investment, at the Saudi Vision 2030 Business Forum in Tokyo this week to set up the fund, according to a statement.

The fund will be “dedicated to nurturing start-ups and investing in the Saudi market.”

The initiative is in line with the kingdom’s strategy to boost the private sector’s contribution to the gross domestic product (GDP), stimulate the influx of foreign investments and improve Saudi’s ranking in the Global Competitiveness Index.

Through the initiative, funding will be made available to businesses during their establishment and growth phases.

“We aim to provide opportunities for start-ups to achieve growth and innovation, fostering bilateral relationships between Saudi Arabia and Japan,” said Mohamed Amine Merah, Managing Partner and CEO of BIM Ventures.

“Our primary goal is to work with the Ministry of Investments to attract local and international partnerships, thereby positively impacting the kingdom’s economy.”

(Writing by Cleofe Maceda; editing by Seban Scaria)