Intel sets up US$50mln Middle East technology fund

RIYADH (Reuters) - US chipmaker Intel has set up a US$50 million fund to invest in technology start-up firms in Saudi Arabia, Turkey and Egypt, Intel chairman Craig Barrett said on Tuesday.

Barrett said the fund would invest in companies developing computer hardware or software and other information technology services. Intel will also help manage a separate US$100 million fund for similar projects in Saudi Arabia alone, he said.

Barrett said Saudi Arabia had created "the right chemistry for start-up companies involved in this hi-tech area, which is why we are investing in human resources and funding to the tune of US$50 million".

Intel has chosen the Saudi capital of Riyadh as one of about 10 "digital cities" where it says it is helping to promote the effective use of information technology.

Saudi Arabia plans to introduce wireless technology -- probably the WiMAX technology developed by Intel -- across large parts of Riyadh, officials told Reuters this week.

"To have Riyadh and Saudi Arabia very active in the initial implementation worldwide of WiMAX is a great opportunity," Barrett said.

"There is not a great penetration of broadband to date, but there is an ability to have a wholesale introduction of WiMAX in a short period of time in a cost-effective fashion," he said.