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.

Saudi wealth fund invests $3.5bn in Uber

Controversial taxi app Uber has raised $3.5bn (£2.43bn) from Saudi Arabia's sovereign wealth fund valuing the company at $62.5bn.

The Saudi Arabian Public Investment Fund will now own approximately 5 per cent of Uber and the fund's managing director Yasir al-Rumayyan will join the company's board. Other board members include Benchmark Capital general partner Bill Gurley and Huffington Post co-founder Arianna Huffington.

Uber co-founder and chief executive officer Travis Kalanick called the investment a "vote of confidence in our business" and is set to invest $250m in the Middle East to expand its operations.

The deal put the company's total balance sheet, including cash and debt, at more than $11bn.

Read more: Will driverless cars be the end of public transport?

In the first quarter of the year, Uber boasted 395,000 active riders across the region, a five-fold jump from the first quarter of 2015, and 19,000 active drivers, representing a four-fold increase over the same period.

In May, Volkswagen invested $300m (£205m) in taxi on-demand service Gett. The same day, Toyota announced it's investing in Uber to launch a ride-sharing venture.

Last month also saw Apple investing $1bn in Chinese ride-hailing service Didi Chuxing while General Motors invested $500m in Uber rival Lyft in March.