Emerging technology and AI startups in the Mena region are struggling to find investors.
Industry experts say that the Middle East attracts less than 5 percent of global funding for AI because of the lack of specialised venture capital funds that are willing to take risks.
“Our region lags behind the rest of the world when it comes to committing actual cash to new technology,” said Ed Rawles, chief talent officer of Nybl, an AI data company.
Global venture capital investments fell to a near five-year low in the first three months of 2024, mainly due to higher interest rates.
However, governments in the UAE and Saudi Arabia are stepping in.
Abu Dhabi announced the launch of a $100 billion AI-focused investment vehicle called MGX that will have sovereign wealth fund Mubadala and AI company G42 as its foundational partners earlier this year.
To rival that, Saudi Arabia launched Project Transcendence, another $100 billion AI project, through which the Public Investment Fund will invest in data centres, startups and other infrastructure to develop artificial intelligence.
Watch the video to learn more about funding for AI in Mena