Uber raises $3.5 billion from Saudi Arabia’s sovereign wealth fund

The logo of car-sharing service app Uber on a smartphone over a reserved lane for taxis in a street is seen in this photo illustration taken in Madrid on December 10, 2014.

Reuters/Sergio Perez/Illustration/File Photo

Uber [UBER.UL] has raised $3.5 billion (£2.4 billion) from Saudi Arabia’s sovereign wealth fund, the U.S. ride-hailing service said on Wednesday, gaining a crucial partner in its expansion into the Middle East.

The investment from the Saudi Arabian Public Investment Fund was part of Uber’s most recent financing round that valued the company at $62.5 billion, Uber said, making it the most highly valued venture capital-backed company in the world.

As part of the investment, a managing director at the fund, Yasir Al Rumayyan, will take a seat on Uber’s board, the company said in a statement.

Uber has committed to investing $250 million in the Middle East, where it has grown aggressively. The company says that 80 percent of Uber riders in Saudi Arabia are women.

(Reporting by Heather Somerville; Editing by Tiffany Wu)