• Saudi VC STV and Google launch a USD 100 million fund to back AI startups across MENA’s growing tech scene.
• The fund targets AI apps, infrastructure, and localized models to boost regional innovation beyond just using AI tools.
• MENA’s AI funding lags behind global leaders, but this move aims to shift the region from adopters to builders.

STV

Looks like MENA’s finally getting serious about AI — not just talking transformation, but actually funding it.

Saudi VC STV launched a USD 100 million Artificial Intelligence Fund with Google. It was announced at the Saudi-US Investment Forum in Riyadh. 

The goal?  Back AI-native startups across the region, from app-layer solutions to infrastructure and localized models.

What is the play? STV says it is going after the “application layer,” meaning the tools and platforms people actually interact with, not just the backend infrastructure. And Google? It’s bringing its AI expertise and support programs like Google for Startups to the table.

MENA and AI

Why does this matter? This is not just about catching up. STV’s research says only 1.5% of VC funding in MENA went to AI this year. Compare that to 38% in the US and 13% in India, and it is clear that there is untapped potential for AI-led transformation in the region. 

This gives MENA the opportunity to play offense,not just adopt AI, but help define how it’s built and scaled. This fund alongside Google’s involvement signals a shift: MENA investors want to go from being users to builders.

While still early, this could trigger the first significant wave of AI-native startups built in and tailored for the region.

Bottom line: A USD 100 million fund is just the beginning. With STV and Google involved, it sets the stage for more regional investors, like Prosperity7, to explore AI opportunities.