Saudi sovereign wealth fund invests $3.5bn in Uber
This week, Uber has raised $3.5bn from Saudi Arabia’s sovereign wealth fund, reflecting the company’s single biggest-ever investment, taking the value of the ride-sharing platform to a reported $62.5bn. The Saudi Arabian Public Investment Fund will now own around 5% of Uber, and the fund’s managing director will join the board. As we recently reported, Uber announced plans to spend $250m growing its Middle Eastern business, and Uber CEO, Travis Kalanick, welcomed the news of this latest investment as a “vote of confidence in our business.” Uber has seen steady growth in Saudi Arabia, in large part due to the fact that 80% of Saudi Uber riders are women, who are forbidden from driving due to strict Islamic laws. The investment is also seen as part of the Kingdom of Saudi Arabia pivoting its economy away from oil.

SAN FRANCISCO — In its quest to build a global empire, Uber has turned to the Middle East for its biggest infusion of cash from a single investor.

Uber said on Wednesday that it had raised $3.5 billion from Saudi Arabia’s Public Investment Fund, the kingdom’s main investment fund, in one of the largest-ever investments into a privately held start-up.

The money was part of the ride-hailing giant’s most recent financing round and continued to value Uber at $62.5 billion. The investment, which was months in the making, does not cash out any of Uber’s existing investors.

Uber, which has viewed the Middle East as an important area in its expansion, said the investment further aligned the company with Saudi Arabia as the kingdom planned to transform its economy, reducing its dependence on oil and improving employment.