Propeller Launches $50M AI Fund to Propel MENA Startups onto Global Stage

Editorial Team

Last updated 26-11-2025

3 min

Propeller launches a $50 million fund for AI infrastructure between MENA and the US.

Fund III targets startups developing foundational AI software and systems.

The firm emphasises a global approach for MENA tech, especially aiming at Silicon Valley.

Propeller partners have vast experience in scaling MENA and North American startups.

The new fund signals a shift towards international expansion for regional tech innovators.

Propeller, the Jordan‑rooted VC that has been steadily tightening the links between MENA’s engineering talent and the big tech corridors of the US, has rolled out a new $50 million fund aimed squarely at AI infrastructure. I reckon many founders across the region will see this as a bit of a turning point, especially with the firm now straddling Amman, Riyadh, Boston, and Silicon Valley. It’s a far cry from the early days when building cross‑border tech ambitions from the Middle East felt like, well… a bit of a faff.

The new vehicle, Fund III, zeroes in on startups crafting the underlying software for AI systems—everything from silicon-adjacent solutions to the tools that power enterprise workflows. Propeller has already put money into five companies this year, including Codemod, Netpreme, Stealthium, Pebble, and Ciphero AI. All of them are either operating in or selling directly to the US, which shows the kind of international posture the firm keeps emphasising.

Zaid Farekh, the firm’s founder, summed up their worldview quite neatly, saying that the future of MENA tech “isn’t local; it’s global,” and that Fund III is built as a bridge between bold builders in the region and the huge AI ecosystem centred around Silicon Valley. Spot on or not, it’s clear they want founders thinking globally from day one, not as an afterthought once the product is already out in the wild.

One thing I’ve always noticed covering this space for Arageek is how often MENA founders underestimate how early they need to plan for scale. On the flip side, Propeller seems determined to back those who get it right from the outset—teams designing for international markets before their first proper release. And believe it or not, that mindset really can shave months off a startup’s go‑to‑market struggles.

The firm’s bench is pretty seasoned too. Its partners have launched, scaled, and exited companies across both MENA and North America, building up an unusually wide web of technical talent, design partners, and friendly venture funds. Earlier this year, Hani Azzam came on board to strengthen Propeller’s US footprint and has now been named a Partner with the launch of Fund III. That move alone signals how serious they are about running operations on both sides of the ocean.

Propeller already counts more than 30 startups in its earlier funds, with names like Clarity (previously Anecdote), ActivePieces, OpenCX, Corgea, Hounddog.ai, POSRocket, and Maqsam. These aren’t just regional players—they’re companies that have proven they can stretch into international markets without losing their footing at home. The firm’s second fund, backed by Saudi Venture Capital Company (SVC) and Jordan’s ISSF, helped build that momentum.

In a region where investors can be cautious and founders sometimes struggle to break out globally, this new fund feels like a confident push forward. I’m not a fan of overly hyped announcements, but I’m chuffed to bits when I see something that actually fits into the bigger picture of MENA’s tech evolution—even if growth isn’t always as linear as we pretend. And if Propeller pulls off what it’s aiming for, Fund III might just be one of those moments where the region’s AI story becomes definatly more international than before.

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