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Gulf AI ambitions tested by conflict, Saudi startups dominate funding, and Interpol strikes cybercrime across MENA

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Middle East conflict tests Gulf's AI hub ambitions

CNBC reports that the Gulf's race to become a global AI hub is facing headwinds as the prolonged Middle East conflict raises concerns over energy security and infrastructure resilience. Two Amazon data centers in the UAE were targeted early in the war, and some AI investment decisions have been paused. Analysts say the region's low-cost energy advantage remains compelling, but geopolitical risk is reshaping investment timelines.

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Funding

a16z makes first GCC investment as Saudi startups dominate funding week

Andreessen Horowitz (a16z) led a $25M Series A in Saudi fintech Stitch — its first investment in the GCC region. Stitch, founded in 2022, develops a cloud-native operating system for financial institutions and has processed over $5 billion in transactions. The round included participation from Arbor Ventures, COTU Ventures, Raed Ventures, and SVC. Saudi Arabia also saw funding moves from TruKKer ($300M securitization facility) and Aumet ($12M Series A).

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Security

Interpol's Operation Ramz arrests 201 in landmark MENA cybercrime sweep

Interpol coordinated the first large-scale cybercrime operation in the MENA region, arresting 201 individuals across 13 countries. Operation Ramz (October 2025 – February 2026) identified 382 additional suspects, 3,867 victims, and seized 53 servers. The operation targeted phishing, malware, and cyber scams. Qatar identified compromised devices being unknowingly used to spread threats, while Moroccan authorities seized equipment used for banking fraud.

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Funding

Khwarizmi Ventures launches $70M+ Fund II for GCC startups

Saudi-based Khwarizmi Ventures launched Fund II with a first close exceeding $70 million (SAR 270M) from institutional investors and Saudi family offices. The fund will deploy $1M–$5M cheques in seed and Series A startups across the GCC, remaining sector-agnostic with focus areas in fintech, consumer tech, and AI. Khwarizmi's Fund I backed 30+ startups including Calo, Eyewa, and Tamara, achieving five exits within its first five years.

Wamda Read more →

MENA

MENA startup funding drops to $941M in Q1 2026 amid geopolitical tensions

MENA startup funding fell to $941 million in Q1 2026, a 21.5% quarter-on-quarter and 37% year-on-year decline. The UAE led with $625.8M across 46 deals (66.5% of all VC deployed), followed by Saudi Arabia at $156.7M across 57 deals. March recorded one of the weakest months in recent years as only 17 startups raised less than $50M total. Geopolitical tensions, including the Strait of Hormuz disruption, weighed heavily on investor activity.

Economy Middle East Read more →

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