Riyadh, April 2025 – STV, the leading growth investor in the tech sector in MENA, has announced the final close of its inaugural non-dilutive capital vehicle, the STV NICE Fund I. This milestone follows a successful commitment from SAB Invest through its Alternative Financing Fund, a CMA-licensed private fund, as well as several family offices. This initiative, supported by the National Technology Development Program (NTDP), is set to address the financing gap for tech startups in the Kingdom, offering critical Sharia-compliant non-dilutive capital to fuel growth in the rapidly expanding tech sector. The launch of the partnership was announced on 30th April 2025 with the presence of Ms Lubna Alolayan Chairperson of SAB, Abdulrahman Tarabzouni Founder of STV, Ibrahim Neyaz CEO of NTDP, and Ali Almansour Managing Director & CEO at SAB Invest, along with various stakeholders of the banking and investment industries.
The STV NICE Fund I is designed to provide a founder-friendly capital alternative for growth companies, to accelerate their business while avoiding equity dilution. A pioneering development in the region, the fund leverages the innovative Non-Dilutive Investment in Callable Equity (NICE) instrument. This unique structure enables investors to capture high-growth opportunities in the tech sector while generating regular income within a Sharia-compliant framework. The fund has already invested in several tech startups, including Morni, RedBox and Invygo.
This effort also aligns with the Financial Sector Development Program and correlates with the Capital Market Authority's new strategy by developing innovative financing solutions through public-private partnerships. SAB Invest will enable a broader investor base to participate in this unique growth-income, shariah-compliant investment product, which opens the door to building a truly scalable and sustainable funding platform.
Ihsan Jawad, General Partner of STV, commented “This milestone marks a pivotal moment in the evolution of tech investment in the Kingdom. We are very pleased to have developed a funding instrument tailored to the needs of regional startups”
Ibrahim Neyaz, the CEO of NTDP added, “Our strategic backing of Non-Dilutive initiatives will create a sustainable, scalable funding platform to meet the increasing demands of tech startups in the Kingdom. This effort aims to accelerate the growth of these companies, offering access to non-dilutive capital that will foster innovation and contribute to the diversification of the economy.”
Osama Alowedi, Chief Investment Officer of SAB Invest, commented “Our partnership with STV and the strategic backing of NTDP marks a new era of opportunity for investors and startups alike. SAB Invest’s Alternative Financing Fund offers clients steady, Sharia-compliant income while fueling the growth of Saudi tech companies at the heart of the Kingdom’s economic transformation.”
About STV
STV is a leading venture capital firm committed to supporting and accelerating high-growth tech startups. Through innovative funding solutions such as the NICE instrument, STV focuses on empowering entrepreneurs to scale their businesses.
STV is the largest independent technology investment firm in MENA. STV backs and scales the MENA region’s most exciting and disruptive technology companies.
About SAB Invest
SAB Invest is a leading investment firm focused on creating value through strategic partnerships and innovative financing solutions. With a focus on growth, SAB Invest aims to drive sustainable investment opportunities in the Kingdom's burgeoning tech sector.
About NTDP
NTDP is a national program that contributes to developing the technology ecosystem in the Kingdom and increasing its effectiveness by driving sustainable growth using different interventions and support mechanisms complementing efforts made by other stakeholders.