Saudi defence fund moves to scale up as Persian Gulf tensions mount

Saudi Arabia's first defence-focused venture capital fund, MASNA Ventures, is seeking to plough more money into local manufacturing of US and allied defence technology as conflict in the Persian Gulf exposes the region's military gaps.

The fund, anchored by a prominent Saudi family office and sharia-compliant, has asked the Capital Markets Authority to raise its capacity to $150 million from $100 million, General Partner Lucien Zeigler told Reuters.

Committed capital so far includes only Saudi nationals, and the firm is weighing whether to bring in international capital, Zeigler said, declining to comment further on amounts or investors, citing regulations.

"This is a bet on Saudi sovereignty, and we want Saudis who believe in the sector sharing in the wins," he said.

The firm is speeding up collaboration with so-called prime original equipment manufacturers and startup unicorns, "whose connected, autonomous platforms were designed for exactly what is happening in the gulf and the Red Sea," Zeigler said.

He declined to name the companies, citing non-disclosure agreements. The prime manufacturers term refers to major defence firms such as Lockheed Martin and Boeing.