In essence, Wa'ed is investing in Saudi's future, and we are betting that future is going to be bright, as our economy grows and diversifies, and provides opportunity for all.
Based on Wa'ed's recent financial performance, a challenging period influenced by the COVID pandemic, this strategy of catalyzing Saudi's future is producing a healthy return. The value of companies in Wa'ed's venture capital portfolio -- there were 31 VC firms as of June -- increased 39 percent to 233 million SAR during 2020. That includes a fair market value increase of 78 million SAR over the 155 million SAR in Wa'ed's original disbursements.
Similarly, the value of Wa'ed's loan portfolio rose 16 percent to 68 million SAR during 2020. The increase included 32 million SAR in new loan disbursements and 11 million SAR in collections.
Viewed on a micro level, these gains are the market's momentary endorsement of Wa'ed's ability to identify and financially back successful, growing start-ups -- which is not the norm in the entrepreneur's world.
The gains are also confirmation of Wa'ed's ability to select Saudi start-ups who will receive and repay our no-collateral loans -- the only non-collateral form of lending available in the Kingdom to start-ups.
While these gains in financial numbers are a testament to Wa'ed's investment selection processes, our performance also benefits from our improving financial management practices, which make Wa'ed efficient and financially stronger.
The professionals in Wa'ed's Finance team provide a complete stewardship for Aramco's entrepreneurship arm from finance and accounting functions to planning and performance management to treasury and cash management.
Our financial reporting is done in house, and we are constantly improving our practices to meet Aramco's demanding best-in-class global standards.