MENA, Pakistan & GCC Tech Mid-Week Update

Week of January 27 – February 3, 2026

🔥 HEADLINE FUNDING DEALS

UAE Cloud Kitchen Giant Kitopi Raises $50M

Kitopi secured $50 million in growth capital led by EvolutionX, the private credit platform established by Temasek and DBS Bank, marking EvolutionX’s first investment in the GCC. The funding will fuel expansion of Kitopi’s homegrown brands across the UAE, Saudi Arabia, Qatar, Bahrain, and Kuwait, while accelerating regional and international franchising plans. With over 200 locations and achieving profitability, this deal validates the cloud kitchen model in the region.

Shorooq Launches $200M Late-Stage Growth Fund Backed by QIA

Abu Dhabi-based investment firm Shorooq launched a $200 million late-stage growth fund backed by Qatar Investment Authority and other sovereign and institutional investors, announced at Web Summit Qatar. The fund targets late-stage and pre-IPO companies with proven scale, addressing a critical gap in the region’s startup-to-IPO pipeline.

Saudi AI Startup Intella Raises $12.5M Series A

Riyadh-headquartered AI startup Intella raised $12.5 million in an oversubscribed Series A round led by Prosus, with participation from 500 Global, Wa’ed Ventures, Hala Ventures, and others. Intella develops AI models tailored to Arabic dialects, offering transcription, analytics, and customer engagement tools.

Lebanon’s HAQQ Legal AI Secures $3M

Lebanon-based regtech HAQQ Legal AI raised $3 million to date, led by Sowlutions Ventures, to accelerate development and global rollout of its Legal AI and practice management platform. The platform serves over 7,000 clients including enterprise legal teams, law firms, bar associations, and courts across MENA.

Saudi Vacation Rental Platform Gathern Raises $72M Series B

Saudi Arabia’s leading vacation rental platform Gathern raised $72 million in Series B round led by Sanabil Investments, continuing the momentum in Saudi’s proptech sector.

Saudi DaaS Startup Zetta Closes $12M Series A

Saudi Arabia-based Device-as-a-Service (DaaS) startup Zetta successfully closed a $12 million Series A funding round led by Core Vision Investment.

Qatar’s Hydrovest Raises $275K for Agritech Expansion

Doha-based Hydrovest Technology raised QAR 1,000,000 ($275K) to accelerate commercial production of climate-smart agricultural solutions, with plans to expand into the UAE in Q4 2026.

📊 MARKET OVERVIEW: JANUARY 2026 FUNDING

MENA Ecosystem Shows Resilience

Startups across the Middle East and North Africa raised $563 million in January 2026, reflecting selective but sustained investor interest in scale-stage companies. The funding concentrated around Saudi Arabia and the UAE, with fintech attracting the lion’s share.

Key Insights:

• Fintech attracted the most funding in January, with seven startups raising $319.7 million
• Saudi Arabia continued to consolidate its position as the region’s most active venture market, with the UAE remaining a close second, particularly for fintech, Web3, and cross-border platforms
• Saudi Arabia and UAE startups led venture capital funding in 2025, attracting $3.13 billion worth of investments, accounting for 91% of total funding deployed across MENA

🇵🇰 PAKISTAN: AI TAKES CENTER STAGE

Indus AI Week 2026: National AI Mobilization

Pakistan is hosting Indus AI Week 2026 from February 9-15, representing the country’s most ambitious AI initiative to date.

Event Highlights:

• The week will open with the Indus AI Summit at the Jinnah Convention Center, Islamabad, on 9 February, followed by the Innovation, Learning and Engagement Arena at the Islamabad Sports Complex on 9-10 February
• The Summit will culminate in the issuance of the Islamabad AI Declaration, a statement of national intent setting out Pakistan’s principles and execution priorities for Sovereign AI and AGI
• Federal Minister for Information Technology Shaza Fatima Khawaja said the government would host Indus AI Week 2026 from Feb. 9 to 15, inviting international partners, investors and innovators to engage with Pakistan’s growing AI landscape

Strategic Focus:

• National technology showcase and startup-investor networking
• Skills training targeting 200,000+ individuals annually
• 11 flagship programs including Uraan AI Techathon 1.0
• Co-branded activities at universities and institutions nationwide

🇶🇦 QATAR: BUILDING A VC HUB

QIA Expands Fund of Funds to $3 Billion

Qatar Investment Authority plans to invest in five new venture capital funds as part of an expanded $3 billion venture capital program, with funds from Greycroft, Ion Pacific, Liberty City Ventures, Shorooq and Speedinvest set to open offices in Doha.

Web Summit Qatar 2026 in Full Swing

Web Summit Qatar 2026 is underway in Doha, drawing 30,000 attendees including startups and global investors tackling AI, quantum computing, and the creator economy. Major announcements include:

• Qatar Research, Development, and Innovation (QRDI) Council announced the second cycle of the Innovation Pilot Grant during Web Summit Qatar 2026

🇪🇬 EGYPT: POSITIONING AS REGIONAL AI HUB

AI Everything MEA Egypt – February 11-12, 2026

The inaugural Ai Everything Middle East & Africa Egypt will take place in Cairo from 11-12 February 2026, under the auspices of President Abdel Fattah El-Sisi, presented by GITEX GLOBAL and hosted by the Ministry of Communications & Information Technology.

Why It Matters:

• Egypt’s National AI Strategy 2025-2030 is projected to deliver a $42.7 billion GDP uplift
• FDI skyrocketed from $10 billion in 2023 to $47 billion in 2024, while local startups raised $330 million in the first five months of 2025 alone
• Egyptian startups raised $614m in funding in 2025, marking a 51% year-on-year increase

🇸🇦 SAUDI ARABIA: AI & DEEP TECH SURGE

First-of-Its-Kind AI Venture Fund

Red Sea Global joined forces with Bunat Ventures to launch a pioneering fund dedicated to artificial intelligence startups in the Kingdom, targeting early-and growth-stage companies with plans to support around 25 startups over the next three years.

Key Developments:

• Saudi Arabia is working on the creation of Humain, the Kingdom’s new AI company, with data centers in Riyadh and Dammam expected to come online in early 2026, each with an initial capacity of up to 100 megawatts
• Strong momentum in fintech, proptech, and gaming sectors
• Continued government-backed initiatives driving ecosystem growth

💡 SECTOR TRENDS

Fintech Dominates

Fintech continues to attract the majority of venture capital across the region, driven by:

• Digital payments infrastructure
• Cross-border remittances
• Islamic fintech solutions
• Embedded finance platforms

AI & Arabic Language Models

Multiple startups are focusing on Arabic-specific AI models, addressing the linguistic gap in global AI systems with culturally relevant, compliance-ready solutions.

Late-Stage Capital Gap Being Addressed

The launch of Shorooq’s $200M growth fund and Qatar’s expanded fund-of-funds program signal recognition of the need for institutional capital at the pre-IPO stage.

🎯 KEY TAKEAWAYS

1. Geographic Concentration: Saudi Arabia and UAE continue to dominate funding activity, representing over 90% of MENA capital deployment
2. Sector Focus: Fintech, AI, proptech, and cloud-enabled platforms are attracting the most investor attention
3. Government as Catalyst: National AI strategies in Pakistan, Egypt, and Saudi Arabia are creating ecosystem momentum
4. Institutional Capital: Sovereign wealth funds and institutional investors are playing an increasingly active role
5. Regional Integration: Qatar’s VC hub ambitions and cross-border platforms signal growing regional connectivity

📅 UPCOMING EVENTS TO WATCH

• February 9-15: Indus AI Week 2026 (Pakistan)
• February 11-12: AI Everything MEA Egypt (Cairo)
• Q1 2026: Saudi data centers (Riyadh & Dammam) expected to launch
• Q4 2026: Hydrovest’s UAE market entry