Breaking news

Navigating the AI Revolution: Strategic Investments in MENA

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.

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.

EU Moderates Emissions While Sustaining Economic Momentum

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter