Saudi-based venture capital firm STV has officially teamed up with Google to launch a powerful new initiative: an AI Fund focused entirely on accelerating AI-native startups across the Middle East and North Africa (MENA).
This new fund aims to close the funding gap in regional AI innovation and provide the tools, capital, and mentorship early-stage startups need to thrive.
Why does STV-Google partnership matter?
Despite growing interest in AI across MENA, only 1.5% of total VC funding in the region went toward AI in 2024 — a tiny slice compared to 38% in the U.S. and 13% in India. That’s a massive opportunity just waiting to be unlocked.
With Google’s global AI expertise and STV’s regional leadership, the AI Fund aims to:
- âś… Boost early-stage ventures
- âś… Support application-layer AI solutions
- âś… Advance localized AI models
- âś… Invest in core AI infrastructure
According to STV, the immediate cost-saving potential of AI in the GCC alone is already valued at over $23 billion — and the long-term upside could be exponentially higher.
What the leaders are saying
Ahmad AlNaimi, General Partner at STV, explained the strategy behind the fund:
“We believe most of AI’s value will emerge at the application layer. That’s where we’re placing our bets — on startups building real-world, AI-powered tools tailored to regional needs. With Google’s support, we’re ready to help these startups scale globally.”
Meanwhile, Najeeb Jarrar, Regional Marketing Director for Google in the Middle East & Africa, emphasized Google’s broader commitment to the region:
“At Google, we’re focused on making AI accessible to everyone. Our backing of STV’s AI Fund builds on initiatives like the MENA AI Opportunity Initiative and Google for Startups — programs that support regional entrepreneurs building the future of AI.”
What the AI Fund Will Focus On
The STV AI Fund will specifically target:
- Application-layer AI startups – building useful tools, platforms, and services
- Localized AI models – customized for Arabic language, culture, and market dynamics
- Core infrastructure – enabling regional capacity for training and deploying AI at scale
This fund is not just about investment — it’s about building an ecosystem that helps AI startups go from idea to impact.
STV’s vision for the future
STV says this is just the beginning. Their vision is to make the MENA region a launchpad for global AI innovation. By fostering a new generation of AI-native ventures, they hope to attract more founders, investors, and talent to the region.
As STV puts it:
“We’re optimistic by nature — and excited by the potential of AI in the region. With this fund, we aim to spark a wave of high-impact startups. If you believe in that vision, we invite you to join us.”