In January, AI was the talk of the town from Davos to Riyadh. Both regions are betting big on AI, with MENA focusing on building data center infrastructure and Europe on scientific breakthroughs. And OpenClaw is obviously capturing the imagination with AI agents developing their own language, marketplace and a social network for agents. February is shaping up to be an exciting month. Stay tuned!
And now, to investment trends and the real-world economy.
Table of Contents
MENA NEWS
Saudi Arabia fully opens its capital market to foreign investors
Saudi Arabia will allow all foreign investors to directly invest in listed companies starting February 1, 2026, removing ownership caps and the Qualified Foreign Investor designation. Analysts expect this to attract global capital, boost liquidity, and fuel more IPOs, while supporting Vision 2030’s goal of diversifying the economy beyond oil.
Foreign holdings in Saudi equities already reached $157B by Q3 2025.
Why is Saudi Arabia now the center of MENA venture capital?
MENA startups raised over $250M only in one week across fintech, healthtech, AI, and gaming, led by Saudi Arabia, reflecting growing investor appetite for early- and growth-stage ventures. According to the 2025 Magnitt report on Saudi venture capital, the Kingdom remains the region’s main capital engine, signaling a shift from early-stage activity toward scale-ups and exits.
Saudi VC market: annual funding volume and number of deals (2021-2025)
Saudi leads MENA VC: $1.7B deployed in 2025, accounting for 45% of all VC capital in MENA, with the highest deal count across the region.
Series B and mega-rounds are back, early exits are emerging, opening the door for growth equity, PE, private credit, structured capital, and secondaries to play a bigger role.
E-commerce and FinTech remain dominant, but logistics, travel, gaming, and cybersecurity are attracting meaningful capital, pointing to Saudi-first, unit-economics-driven businesses built to scale regionally.
91% of VC funding in the region goes to startups in the UAE and the KSA.
Fikra ventures & Hub71 partner to build AI companies in Abu Dhabi
Abu Dhabi, UAE: Fikra Ventures has teamed up with Hub71, Abu Dhabi’s global tech ecosystem, as a venture studio partner under its Initiate Programme, to build and scale AI-native companies in the UAE, strengthening the emirate’s push to become a global AI launchpad.
Two pathways:
Venture Creation: Build AI-native companies with market-ready products and built-in commercialization.
Global Scale-in: Help global AI companies enter the region through joint ventures, accelerating customer acquisition and scaling.
The partnership aligns with Abu Dhabi’s government-backed AI agenda, where programs like Initiate are used to attract global builders, talent, and IP into the emirate.
Hub71 is backed by Mubadala and ADIO and supports startups that have collectively raised hundreds of millions of dollars, adding institutional weight to the collaboration.
“We firmly believe in Abu Dhabi’s vision to be the capital of AI,” said Wael Aburida, CEO & Managing Partner, Fikra Ventures.
Asharq Business partners with Nasdaq to bring real-time US market data to MENA
Asharq Business is bringing real-time US stock market data to Middle East investors through a strategic three-year partnership with Nasdaq. The collaboration makes Asharq the first MENA news platform to integrate Nasdaq Last Sale data, giving regional audiences instant access to US equities pricing across all platforms.
The move reflects growing investor appetite in the Gulf for direct US market access, especially as Saudi Arabia fully opens its own capital markets in February. Enhanced transparency and faster data delivery help MENA investors make smarter decisions in an increasingly connected global marketplace.
AI-driven Islamic digital bank Mal raises $230M
Mal, a mobile-first Islamic digital bank, has secured $230M in a strategic investment led by BlueFive Capital. Founded by Abdallah Abu-Sheikh, the Abu Dhabi–based startup plans to launch in 2026, starting in the UAE and expanding across the Middle East and Asia, targeting underbanked communities.
Funding will speed up product development, regulatory approvals, and the go-to-market strategy.
NEWS FROM EUROPE
While MENA doubles down on AI infrastructure and capital market access, Europe is channeling investment into deeptech R&D, from fusion energy to biotech. The contrast highlights each region's strategic advantage: MENA's rapid deployment capability versus Europe's scientific depth.
Anthropic launches Claude for healthcare
Anthropic introduced Claude for Healthcare, a HIPAA-ready AI for providers, payers, and patients, just days after OpenAI’s ChatGPT Health.
It helps with prior authorizations, care coordination, medical coding, billing, and regulatory submissions, while connecting to US health databases and clinical trial platforms. User data isn’t used for model training, keeping privacy front and center. This marks AI’s rapid push into healthcare.
The EU earmarked $356M for investing in AI and digital tech
The European Commission is investing $356M to boost AI, robotics, quantum tech, photonics, and virtual worlds across the EU.
Key targets:
$256M for AI services, innovative data solutions, and digital leadership.
$46M for the Open Internet Stack Initiative, advancing apps and core tech.
$99M to strengthen Europe’s autonomy in emerging tech and raw materials.
Funding is open to businesses, universities, and public bodies, focusing on next-gen AI agents, industrial robotics, and advanced sensing materials.
Meet the next wave of Europe’s soon-to-be unicorns
Europe is quietly building its next wave of deeptech unicorns, focusing on energy, biopharma, and mobility. Funding is growing, and these startups are moving from development to deployment.
Exeger, Sweden – customizable solar cell that converts all forms of light into electrical energy; raised $15M in 2025.
Hemab Therapeutics, Denmark – the first preventative treatments and functional cures for patients with rare bleeding and thrombotic disorders; Series C $157M.
Proxima Fusion, Germany – Europe's fastest-growing fusion startup building the first generation of fusion power plants using quasi-isodynamic (QI) stellarators to power the future; total funding $200M.
FINN, Germany – car subscription platform; Series C $100M, valued over $600M.
These soonicorns show Europe’s deeptech ecosystem is scaling with strategic innovations ready to expand globally.
Choosing the next market to enter or looking for the right partner in Europe or the Nordics?
EVENTS ON OUR RADAR
SPARK, Sharjah, UAE
31 January – 1 February 2026
The region's largest entrepreneurship festival: 14,000+ attendees, 300+ speakers, 250+ sessions across 2 days. Featuring Investor Lounge, Startup Showcase & Pitch Competition.
Riyadh, Saudi Arabia
3-4 February 2026
Global conference bringing together retail sector leaders to discuss growth changes, supply chain matters, emerging markets, and the impact of AI on the future of the sector.
King Abdulaziz International Conference Center, Riyadh
9-10 February 2026
Forum connecting PIF and its portfolio companies with government, investors, and the private sector for partnerships and opportunities.
Strawberry Arena, Stockholm
11–12 February 2026
Where entrepreneurship meets business. Thousands of startups, investors, and corporate leaders in Stockholm. 300+ speakers.
Epicenter, Stockholm
24 March 2026
Where Swedish tech meets capital. Leading entrepreneurs, investors, and lenders discuss the rebounding market, AI growth, and new partnerships at Breakit's flagship event.
Sweden
13 April 2026
GoWest strengthens access to capital for West Sweden’s start-ups and scale-ups by attracting international investors and partners.
