Saudi telecom invests $50 million in SMEs fund

Saudi Telecom Co. (STC) announced that it will invest $50 million in a venture capital fund which invests in emerging, small and medium-sized enterprises operating in the local as well as global IT and telecommunication sectors. STC will be the only investor at the beginning, while other local and global companies will be invited to invest in the fund later on. The fund will be launched as of December 3, 2011. The fund that covers local, MENA, European and US markets aims to minimize investment risks and will be funded by Ares Capital Corporation. The fund will invest in SMEs developing products in IT and telecomm sectors, and thus provide investment opportunities through venturing into new partnerships. (QNA) LY