Jordan's Innovative Startups and SMEs Fund (ISSF) has partnered with STV to bring the Google-backed AI Fund to Jordan, offering local AI founders access to the region's largest venture investor. The $100 million fund aims to bridge the gap in AI startup funding in the MENA region.
TL;DR
- ISSF and STV collaborate to bring the Google-backed AI Fund to Jordan, providing local AI startups with access to significant venture capital.
- The fund, which has already invested in four AI-native startups, seeks to address the disparity in AI funding between the MENA region and other global markets.
- The partnership is expected to facilitate technology transfer and investment flow between Jordan and Saudi Arabia.
What happened
The Innovative Startups and SMEs Fund (ISSF), a Jordanian government-backed fund of funds, has teamed up with Saudi firm STV to introduce STV's Google-backed AI Fund to Jordan. This collaboration aims to provide Jordanian AI founders with access to one of the region's largest venture investors.
STV launched the $100 million AI Fund in May 2025 with backing from Google, marking the tech giant's first investment in a MENA venture firm. The fund focuses on application-layer AI, localized models, and supporting infrastructure across the region.
ISSF views the partnership as a way to connect Jordan's technical talent with Saudi Arabia's scale and capital, creating a direct route for Jordanian founders to tap into one of the world's fastest-moving markets.
Why it matters
This partnership is a significant step for Jordanian AI startups, as it provides them with access to substantial venture capital and a global network. It also offers an opportunity for technology transfer and investment flow between Jordan and Saudi Arabia.
For STV, the collaboration extends the reach of its AI Fund beyond its Riyadh base, into a market that has produced notable founders such as Amjad Masad, the Jordanian-born builder of Endeavor's first Jordan-flagged unicorn, Replit.
Key facts
- The ISSF-STV partnership brings the Google-backed AI Fund to Jordan, offering local AI founders access to the region's largest venture investor.
- STV's AI Fund, launched in May 2025, is backed by Google and focuses on application-layer AI, localized models, and supporting infrastructure.
- The fund has already invested in four AI-native startups: Sawt, Clarity, Signit, and Stream, spanning customer-service AI, analytics, legal tech, and payments infrastructure.
- ISSF was created in 2018 with $50 million from the World Bank and $48 million from the Central Bank of Jordan. It completed its first investment cycle in 2025 and has opened its second phase with a series of fund partnerships.
- STV manages more than $2 billion in assets, with a portfolio including Tabby, Salla, Foodics, and Calo.
Context
The partnership between ISSF and STV comes at a time when the MENA region is increasingly focusing on AI and technology startups. However, the region still lags behind other global markets in terms of AI funding.
According to STV's research, just 1.5% of MENA venture funding went to AI startups in 2024, compared to 38% in the US and 13% in India. The AI Fund was established to help close this gap.
This collaboration is expected to facilitate the flow of technology and investment between Jordan and Saudi Arabia, benefiting both regions' startup ecosystems.
