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STV announces a $100 million AI-focused fund in collaboration with Google to support startups across the Middle East and North Africa.
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In 2024, only 1.5% of VC funding in MENA went to AI, compared to 38% in the U.S. and 13% in India.
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The fund will focus on AI-driven applications, local models, and the infrastructure required to support them.
STV has announced the launch of its $100 million AI Fund, dedicated to supporting AI-native startups across the Middle East and North Africa, in strategic partnership with Google.
The company revealed that only 1.5% of venture capital in the region was allocated to AI in 2024, compared to 38% in the United States and 13% in India.
This disparity highlights an untapped opportunity to drive innovation and economic growth, along with operational efficiencies. STV estimates that the immediate return from AI technologies in Gulf countries exceeds $23 billion, with long-term potential that could multiply this figure significantly.
Ahmed Alnaimi, General Partner at STV, stated:
“The most value in AI will be at the application layer. That’s why the AI Fund will focus on investing in startups building AI-native applications, local models, and the infrastructure required to support them.”
Najeeb Jarrar, Regional Marketing Director at Google for the Middle East and Africa, added:
“At Google, we’re committed to making AI opportunities accessible to everyone. That includes initiatives like the MENA AI Opportunity launched last year, along with the Google for Startups program.”
