Oryx invests Gulf sovereign cash in early-stage MENA startups

When London-based Salica Investments launched its Oryx Fund four years ago, the central strategy was to nurture early-stage startups in the Middle East and North Africa, preparing them to take calculated risks and reap higher returns.

Backed by Saudi Arabia’s Jada Fund of Funds, the Saudi Venture Capital Company, UAE-based Mubadala and state-owned investors in Oman and Jordan, the $50 million fund now operates from offices in Dubai, Abu Dhabi, Riyadh and Muscat, Oman.

Some of the standout companies in Oryx’s portfolio are digital mortgage platform Holo, quick delivery service Barq and Grubtech, which modernizes restaurant operations.

In an interview with The Circuit, Ivo Detelinov, a General Partner in both Salica and Oryx, said the fund looks for startups that address “big themes,” such as digital economics, construction technologies and connected communities. Detelinov is a Board Member of the Middle East Venture Capital Association.

Sara Enan, a Principal at Oryx who also joined the interview, said she’s “magnetized by founders who see blind spots in complex markets. Some of my most exciting finds have been women entrepreneurs in rigid sectors.”

Among Oryx’s successes was co-leading last July’s Series A funding round for 44.01, a climate tech startup based in Oman, which raised $37 million. In October, the fund participated in a $3.7 million pre-seed round for Neuphonic, a text-to-speech AI startup based in London that is seeking to expand in the GCC market. The interview has been edited for length and clarity.

What trends do you see in the Middle East that are driving Oryx’s investment strategy?

Sara Enan: As we enter 2025, we see four key trends shaping MENA’s venture landscape: the continued growth in Embedded FinTech, ConstructionTech, FoodTech, and Real Estate Tech; increasing AI integration across regional technology solutions; the return of mega deals fueled by international investor interest; and the emergence of regional technology IPOs.

Are there specific sectors or industries that Oryx Fund is particularly interested in when making investments?

Ivo Detelinov: We have witnessed the MENA VC ecosystem reach its third iteration – MENA 3.0. – whereby the MENA region emerges as a hub for globally innovative startups. When evaluating sectors, we first look at “big themes”, such as digital economics, construction technology and connected communities. Within these broad themes, we particularly like technology verticals that drive consumers and businesses through access to embedded finance, improved productivity, or those that enable individuals through innovative technologies to receive better, faster and more cost-efficient delivery of healthcare or education.

What are the most exciting aspects as a VC investor of identifying startups that show real promise?

Sara Enan: When I scout for investments, I’m magnetized by founders who see blind spots in complex markets. Some of my most exciting finds have been women entrepreneurs in rigid sectors who showed me a completely different way of looking at old industry problems.

How does Oryx approach risk when evaluating new opportunities in the Middle East?

Ivo Detelinov: We are particularly focused on understanding the regulatory/licensing process in industries that are subject to regulation in our region. Our team works extensively with regulators in our main geographical markets in a continuous effort to keep current with not only what the current regulation is, but also with where the direction of future regulation may be going next. Other risks inherent in our industry are assessing the competition and the risk that the technology we invest in becomes obsolete in the future. Our extensive due diligence process and collaborating with our colleagues in Europe help us understand and manage these risks well.

What key principles or values guide your investment decisions?

Sara Enan: We focus on three core areas: First, we identify technology verticals with accelerating momentum that create tangible value for clients across B2B, B2G, and B2C sectors. Second, we seek founders who combine a growth mindset with the ability to build empowering cultures. Third, we bring a mission-driven approach, aligning with our portfolio companies on value creation while maintaining transparent relationships throughout our journey together.

How do geopolitical factors, such as regulatory changes or regional instability, influence your investment decisions?I

Ivo Detelinov: Our decade-long experience in MENA venture capital has been marked by stability and growth, supported by forward-thinking regional policies. We maintain close relationships with regulatory bodies across financial services, healthcare, and other key sectors. This stability, combined with visionary economic policies, continues to drive the region’s robust growth trajectory.