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AMMAN — The Innovative Start-ups and SMEs Fund (ISSF) has entered into a strategic partnership with Saudi Technology Ventures (STV) capital firm to strengthen the artificial intelligence (AI) start-up ecosystem in Jordan and support the growth of AI companies across the Middle East and beyond.
The partnership comes amid rapid global advances in AI and is expected to provide Jordanian entrepreneurs and start-ups with access to STV's expertise, investment network and regional platform, according to an ISSF statement.
STV, one of the region's largest independent venture capital firms, recently launched a Google-backed $100 million AI fund focused on generative and applied AI. The fund will invest in companies developing innovative software and practical AI solutions for businesses and institutions across multiple sectors.
Under the agreement, signed in Amman last week, ISSF will invest $5 million in STV's AI fund, while STV has committed to investing in Jordanian start-ups. The partnership aims to establish an AI corridor between Jordan and Saudi Arabia by leveraging STV's expertise, network and operational support.
ISSF Chief Executive Officer Mohammed Al Muhtaseb signed the agreement on behalf of the fund, while STV Founder and Chief Executive Officer Abdulrahman Tarabzouni signed on behalf of the Saudi firm.
The signing ceremony was attended by STV's executive management, entrepreneurs and representatives of investment funds operating in Jordan's entrepreneurship and technology sector.
The investment builds on the longstanding economic relationship between Jordan and Saudi Arabia while creating new opportunities to strengthen the regional technology and entrepreneurship ecosystem, particularly in AI.
It also reflects STV's confidence in Jordanian talent and expertise, which has played an important role in the development of the Arab technology sector.
The investment marks ISSF's second commitment under its second fund, following the completion of the first phase of operations through 2025, which received the World Bank's highest performance rating. The World Bank is ISSF's principal contributor.
Al Muhtaseb said the partnership marks the beginning of a new phase for ISSF as it expands its role through regional partnerships focused on emerging technologies.
"Amid the structural transformations underway in global venture capital markets, the Innovative Start-ups and SMEs Fund is keen to redefine its role as an engine for the innovation economy through high-value regional partnerships," he said.
ISSF CEO added "Our partnership today with STV, backed by Google, strengthens the integration of the business environment between Amman and Riyadh,"
"This collaboration will contribute directly to localising AI technology and represents real added value for our entrepreneurial ecosystem, giving our promising companies access to an international network of relationships and advanced incubators that will propel them towards new horizons of growth," he noted.
Tarabzouni said AI represents the foundation of the future economy rather than a passing technological trend.
"ISSF's investment alongside us reflects a shared vision to combine the exceptional energies and talents of our two sister countries. Together, we will transform entrepreneurial ideas from Saudi Arabia and Jordan into technology companies capable of competing regionally and globally," he added.
The partnership is expected to create new opportunities for Jordanian start-ups by providing access to STV's technical expertise in developing and deploying AI technologies.
According to the statement, STV's investment strategy is based on the view that long-term value in AI lies not in developing foundational language models but in building applications that use proprietary enterprise data to solve business challenges and improve operational performance.
The strategy seeks to capitalise on the continued growth of the AI applications market as businesses increasingly adopt intelligent technologies to boost productivity and improve efficiency.
