STV eyes $1 billion for its second middle east tech fund

STV, a venture capital firm started by ex-Google executive Abdulrahman Tarabzouni, is looking to raise at least $1 billion for its second Middle East technology investment fund, making it potentially the biggest fund of its kind in the region, according to people familiar with the matter as reported on Bloomberg.

The company, which was formed in 2017, has started talks with other potential backers, including Middle East sovereign wealth funds and international pension funds and endowments, Bloomberg reported the people as saying.

The people chose to remain anonymous as the details of the fund remain private.

Interest in technology has grown significantly with most governments within the region seeking to diversify away from dependency on oil and investors seeking long term investment sources.

IPOs in the region have also recently taken prominence with Adnoc Drilling coming to the market as the largest IPO on the Abu Dhabi stock market.

STV was an early investor in Careem and also invested in communications platform Unifonic, which received a $125 million infusion led by SoftBank Group’s Vision Fund 2 in September.