Uber gets $3.5B lift from Saudi Arabia

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 Wednesday that it had raised $3.5 billion from Saudi Arabia’s Public Investment Fund, the kingdom’s main investment fund. The money was part of the ridehailing giant’s most recent financing round and continued to value the company at $62.5 billion. The investment does not cash out any of Uber’s existing investors.

As part of the investment, a managing director at the investment fund, Yasir Al Rumayyan, will take a seat on Uber’s board, joining Uber’s chief executive, Travis Kalanick, and other directors, including Arianna Huffington.

“We appreciate the vote of confidence in our business as we continue to expand our global presence,” Kalanick said in a statement. “Our experience in Saudi Arabia is a great example of how Uber can benefit riders, drivers and cities and we look forward to partnering to support their economic and social reforms.”

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.

The infusion from Saudi Arabia is one of the biggest single investments collected by the technology world’s top privately held companies. Uber, whose valuation makes it Silicon Valley’s most valuable private business, has collected billions at a rapid clip over the past three years.

Uber has drawn from a wide variety of investors, including traditional venture-capital firms, mutual fund giants like BlackRock and wealthy clients of Goldman Sachs and Morgan Stanley. Other sovereign wealth funds like that of Qatar have also invested.

Other private tech companies have been busy raising money as well. The messaging company Snapchat raised $1.8 billion in its most recent round, according to a regulatory filing last month.

Uber is racing to defend its territory — which covers 460 cities in more than 69 countries — against incumbents in other regions like Southeast Asia and Europe. China, in particular, is a difficult battleground, as Uber is spending millions in a subsidy war with Didi Chuxing, the dominant ride-hailing startup in the country. Both companies have made no indications that they will back down.

Though Uber dominates the U.S. market for ride-hailing, it has increasingly seen overseas markets as crucial to its growth.

Among Uber’s increasingly important overseas markets is the Middle East, where the company has already said it plans to invest $250 million. The service operates in 15 cities and nine countries in the region, including Saudi Arabia.

“We’ve seen firsthand how this company has improved urban mobility around the world, and we’re looking forward to being part of that progress,” Al Rumayyan said in a statement.