Google joins forces with STV to boost AI innovation across MENA
Saudi-based venture capital firm STV has announced that Google is backing its newly launched AI Fund, a dedicated vehicle aimed at accelerating the growth of AI-native startups across the MENA region.
The fund will focus on early-stage ventures building application-layer AI solutions, localised AI models, and supporting infrastructure.
Backed by Google's global AI expertise and STV's regional leadership, the initiative aims to close the funding gap in AI, which accounted for only 1.5% of total VC funding in MENA in 2024, compared to 38% in the U.S. and 13% in India.
Press release:
We are proud to announce that Google is backing STV's new AI Fund, a dedicated fund established to enable the growth of AI-native startups across the Middle East and North Africa. This commitment signals a transformative step towards enabling AI startups at their early stage and accelerates their growth beyond the region.
The global momentum around artificial intelligence continues to accelerate, with state-of-the-art models and the infrastructure to train them improving at a fast pace. Closer to home, regional governments and technology companies are actively embracing the opportunity, as efforts to localise AI models and infrastructure have picked up significantly recently.
According to our research, 1.5% of the region's VC funding went to AI in 2024 – a stark contrast to 38% in the U.S. and 13% in India. This discrepancy represents a substantial untapped opportunity for innovation, economic growth, and efficiency gains, with immediate AI-driven cost savings in the GCC estimated at $23b+, with the long-term opportunity being orders of magnitude higher.
Ahmad AlNaimi, General Partner at STV, mentions, 'We believe that most of the AI value will accrue at the application layer. As such, our AI Fund will focus on investing in ventures that specialize in application-layer AI, localized AI models, and the necessary supporting infrastructure. By combining our regional expertise with Google's global AI leadership, we will be able to scale regional startups that can compete on a global level.'
Najeeb Jarrar, Regional Marketing Director for Google in the Middle East & Africa, adds, 'At Google, we have always been committed to providing access to the AI opportunity for everyone. This includes work like the MENA AI Opportunity Initiative, announced last year, alongside valuable programs such as our flagship Google for Startups programs. Our commitment to the STV AI Fund allows us to continue supporting entrepreneurs, who are building the future of AI in the region.'
STV, as VC investors, optimism is in our DNA. We're particularly excited about the AI opportunity in the region. We believe this collaboration can spark the first of many cohorts of AI-native ventures and pave the way for the region to become a home base for global technology companies. If you share that vision, join us!
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