Not a month goes by without Saudi Arabia hitting the headlines, this time with a string of ‘firsts’: the region’s first quantum computer for industrial applications, its first humanoid robotics showroom and the first alcohol store opens to non-Muslims. Europe, meanwhile, is stepping up investment in AI, health, and defense. As we head into 2026, we see more and more opportunities for the two regions to collaborate. Read on for the latest developments.

Aramco and Pasqal have deployed Saudi Arabia’s first quantum computer, the Middle East’s first dedicated to industrial applications. Installed at Aramco’s data center in Dhahran, the system uses 200 qubits and neutral-atom technology to advance quantum applications in energy, materials, and industrial sectors.

The partnership includes training programs and joint research to strengthen the Kingdom’s quantum ecosystem and high-tech talent.

Jordan-based VC Propeller has launched $50M Fund III to link MENA AI startups with U.S. markets and major AI infrastructure projects.

The fund focuses on AI infrastructure and AI-native software, building on five 2025 investments, Codemod, Netpreme, Stealthium, Pebble, and Ciphero AI, all targeting U.S. growth.

Founder Zaid Farekh emphasizes backing globally minded MENA founders from day one. With 30+ portfolio companies and strong regional partners like SVC and ISSF, Fund III expands Propeller’s U.S. presence, now led by new Partner Hani Azzam.

Humanoid Robotics and QSS have launched the region’s first humanoid robotics showroom in Riyadh, featuring interactive demos of HMND 01 Alpha Wheeled. The partnership plans up to 10,000 units over five years, with local assembly to accelerate industrial deployment.

Saudi Arabia’s robotics market, valued at $178M in 2024, is projected to reach $544M by 2033, supporting Vision 2030 and industrial automation growth.

Saudi Arabia is gaining global attention as a top destination for meetings, incentives, conferences, and exhibitions (MICE), with the MENA sector expected to reach $100 billion by 2035, according to Dr. Emad Monshi, chairman of the Saudi Tourism Society.

Vision 2030 reforms, major infrastructure investments, and a growing calendar of international events, including Expo 2030 and the FIFA World Cup 2034, are driving this growth. Riyadh now hosts flagship events like the Future Investment Initiative, LEAP, World Health Expo, and World Defense Show.

Masdar and Tadweer have partnered to develop Abu Dhabi’s first commercial-scale plant converting 500,000 tons of waste annually into sustainable aviation fuel (SAF).

The project uses green hydrogen and waste-to-syngas technology and can cut emissions by up to 80% versus traditional jet fuel. It positions Abu Dhabi to become a regional SAF hub, serving multiple markets.

The initiative supports the UAE’s Net Zero 2050 targets and Tadweer’s goal to divert 80% of waste from landfills by 2030, while building new value chains in waste, hydrogen, and clean fuels.

Interested in exploring where your company could gain traction across the MENA region?

The EU Council and Parliament reached a deal to strengthen foreign direct investment screening, making it mandatory across all member states for the first time.

Mandatory screening now covers:

The update addresses inconsistencies across national frameworks and responds to growing geopolitical tensions, particularly concerning Chinese investments in strategic sectors. Rules take effect 18 months after formal adoption, with implementation expected by mid-2027.

The Nordic region is among the fastest-growing markets for corporate deals, with Sweden driving the momentum. From Jan–Nov 2025, transaction value in the Nordics rose from $72.5B to $88.7B, while Sweden alone increased from $33.1B to $42.8B, nearly 30% YoY (BCG, Afv, Nov 2025).

BCG’s Johan Öberg expects more acquisitions in pharma and healthcare, citing consolidation needs and complementary capabilities. Industrial, energy, and tech sectors are also active, using deals to gain scale and expertise.

Sweden and the Nordics are entering a period of sustained high M&A activity, with deals remaining a key tool for growth and competitiveness.

Sweden is boosting its leadership in battery tech with a $2.6M initiative to create a fully circular, traceable EV battery value chain.

The project unites Smartports, Rebaba, Stena Recycling, OKQ8 Group, and RISE, backed by $1.2M from Vinnova. It targets testing, upcycling, deployment, and responsible recycling of EV batteries to support sustainable energy and reduce fossil dependency.

Smartports will integrate second-life batteries into solar carports and EV hubs nationwide. Rebaba, Stena Recycling, OKQ8, and RISE cover scaling, recycling, compliance, and research.

Running 2025–2028, the initiative aims to lay the foundation for large-scale second-life energy storage across Sweden, strengthening the country’s circular battery expertise.

Swedish self-driving truck company Einride is going public via a SPAC merger with Legato Merger Corp., valuing the company at $1.8B. The deal could generate $219M in gross proceeds plus $100M in PIPE capital, and is expected to close H1 2026 on the NYSE.

Einride operates 200 electric trucks across Europe, North America, and the UAE, serving Heineken, PepsiCo, Carlsberg, DP World, and is piloting autonomous pod trucks with Apotea (SE) and GE Appliances (US).

The company runs at $45M ARR with $65M contracted ARR, scaling three lines: electric big rigs, autonomous pods, and planning software.

Einride joins peers like Aurora ($13B, 2021) and Kodiak AI in using SPACs to raise capital for autonomous trucking growth.

On the 25th of November, Klarna launched KlarnaUSD, its first stablecoin, marking a shift for the company whose CEO was once a crypto skeptic. McKinsey estimates stablecoin transactions now reach $27 trillion annually, with potential to surpass traditional payment networks before 2030.

KlarnaUSD will run on Tempo, a Stripe-and-Paradigm blockchain built for payments, aiming to cut cross-border payment costs, a $120B annual market. Built on Open Issuance by Bridge, it’s live on Tempo’s testnet and will launch on the mainnet in 2026, expanding Klarna’s partnership with Stripe across 26 markets.

“With 114 million customers and $118 billion in annual GMV, Klarna has the scale to change payments globally: with Klarna’s scale and Tempo’s infrastructure, we can challenge old networks and make payments faster and cheaper for everyone,” says Sebastian Siemiatkowski, co-founder and CEO of Klarna.

Thinking Nordic tech would be a good fit for your portfolio?

A foodtech company had everything right: technical excellence, competitive pricing, impressive clients. Yet their Saudi market entry took 8 months longer than projected. The reason? In MENA's relationship economy, trust precedes transaction.

While Nordic procurement systems excel at evaluating unfamiliar vendors through structured RFPs, MENA decision-makers rely on trusted intermediaries for validation—particularly in government sectors where Vision 2030 represents over $1 trillion in opportunities. The gap is measurable: DIY government engagement typically takes 8-14 months and 6-8 exploratory trips. Strategic introductions compress this to weeks. Your product excellence is essential, but in markets where government acts as regulator, customer, and catalyst simultaneously, relationship capital is the rate-limiting factor. Read the full breakdown

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