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Navigating the AI Revolution: Strategic Investments in MENA

by THEFUTURE.TEAM

June 24, 2025

Emergence of AI as a Boardroom Priority

In recent years, artificial intelligence has transcended buzzword status to become a strategic focus for investors and startups across the Middle East and North Africa. With AI venture funding reaching $224 million in 2024—a 66% year-over-year increase that now accounts for 12% of all VC dollars—the region is witnessing a dramatic shift in how technology is leveraged for growth.

Early-Stage Trends And Investment Challenges

Muhammad Zeeshan Hassan, Chief Investment Officer at Wa’ed Ventures, notes that before ChatGPT captured public attention, the regional landscape was fragmented. Today, nearly one in three startups in the investment pipeline identifies as an AI company. Although this surge in interest bodes well for fundraising potential, it also poses a challenge for investors striving to discern genuinely innovative ventures from those riding the hype wave.

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Despite this promising momentum, the MENA region still faces a scarcity of later-stage AI companies. The majority of deals—93% between 2022 and 2024—occur at the seed stage due to limited funding capacity. As investors have expressed, while there is a clear appetite for established AI models, capital constraints force a focus on early-stage opportunities, particularly in sectors like fintech where differentiation is key in a saturated market.

Bridging The Technical Knowledge Gap

A notable challenge in the region is the technical illiteracy among many venture capitalists. Unlike investors in Silicon Valley, who often have deep technical expertise or entrepreneurial experience, many MENA funds maintain a generalist approach. This mismatch in evaluating AI innovations can lead to missed opportunities and suboptimal capital deployment. To counter this, Wa’ed Ventures, backed by Aramco, has assembled a panel of global AI experts, ensuring that investments are guided by a robust technical understanding.

Localizing Innovation For Long-Term Impact

The strategic launch of a $100 million AI fund by Wa’ed in 2023 underscores the importance of localizing core technological capabilities within Saudi Arabia. Investments in companies such as chipmaker Rebellions, the compute platform aiXplain, and regional innovators like Elevatus and Intella demonstrate a commitment to building sustainable infrastructure far beyond mere application. As Hassan articulates, the focus is on foundational enablers—compute power, chip technology, and agentic platforms—that will drive enduring value in the region.

A Cautious But Visionary Outlook

While the current landscape is marked by robust enthusiasm, industry leaders remain pragmatic. Founders are urged to align valuation expectations realistically, especially in an environment distinct from Silicon Valley’s high-octane ecosystem. Encouragingly, regional policymakers have shown positive engagement, and initiatives like Saudi Arabia’s Vision 2030, along with partnerships involving global chipmakers such as NVIDIA and AMD, signal a forward-looking commitment to overcoming talent and infrastructure challenges.

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Competition Authority Launches Comprehensive Review of ExxonMobil Cyprus Acquisition

by THEFUTURE.TEAM

September 16, 2025

Investigation Initiated Over Strategic Acquisition

The Competition Protection Authority has commenced a thorough investigation into the acquisition of ExxonMobil Cyprus Limited’s share capital by Petrolina Holdings Public Ltd through Med Energywise Ltd. This inquiry was formally initiated following a session held on 10 September 2025, after an in-depth review of the pertinent report by the Authority’s Service.

Concerns Over Market Compatibility

Authorities have expressed serious concerns regarding the compatibility of the transaction with established competitive practices. The review indicates that the acquisition may affect several critical petroleum markets, both horizontally and vertically, thereby raising the potential for adverse impacts on market dynamics.

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Horizontal Market Dynamics

On the horizontal front, potential effects have been identified in the import market for petroleum products, as well as in both wholesale and retail distribution channels of these products. The consolidation is believed to increase the risk of price rises and coordinated actions, given the direct competitive proximity between Petrolina and ExxonMobil.

Vertical and Adjacent Market Implications

Vertical aspects of the merger are also under close scrutiny. The new entity could restrict competitors’ access to critical infrastructure such as storage facilities, supply channels, and customer bases. These restrictions could further affect the onshore distribution of fuels, the wholesale market for lubricants, and specialized technical services connected with fuel station operations.

Local Market Considerations

Particular attention is being paid to the potential concentration in the retail fuel market. The investigation suggests that a reduced competitive landscape within a four-kilometer radius of the companies’ fuel stations could lead to diminished local competition, adversely impacting consumer prices and options.

Next Steps and Industry Impact

The Competition Protection Authority, which reached a unanimous decision to pursue a full investigation, remains open to submissions from parties that might be affected by this transaction, as mandated by current legislation. A final decision is expected within four months upon receipt of all necessary evidence, potentially setting a significant precedent for future market consolidation cases in the energy sector.