Google Partners with Saudi STV to Back Dedicated Fund for AI Startups in MENA

STV, a leading Saudi-based venture capital firm, 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 Middle East and North Africa (MENA) region.

The fund will focus on investing in early-stage ventures that are developing application-layer AI solutions, localized AI models, and supporting infrastructure for these technologies.

This collaboration combines Google's extensive global expertise in artificial intelligence with STV's regional leadership, aiming to close the funding gap in the AI sector within the region.

Data indicates that venture capital funding directed towards AI in the MENA region constituted only 1.5% of total funding in 2024, a stark contrast to 38% in the United States and 13% in India, highlighting a significant untapped opportunity for innovation and economic growth.

In this context, Ahmad AlNaimi, General Partner at STV, stated: "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."

For his part, Najeeb Jarrar, Regional Marketing Director for Google in the Middle East & Africa, added: "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." (1)

This support underscores the increasing interest in AI technologies and their transformative potential in the region, with estimates indicating that initial cost savings resulting from AI solutions in the GCC countries could exceed $23 billion, with far greater future opportunities.

This collaboration represents a significant step towards empowering early-stage AI startups and accelerating their growth not only regionally but also globally.