Intelmatix CEO Anas Alfaris (Photo credit: Intelmatix on X)

Intelxmatix, an artificial intelligence startup founded by Saudi graduates of the Massachusetts Institute of Technology, has raised $20 million in a recently disclosed financing round led by Abu Dhabi-headquartered venture capital firm Shorooq Partners.

The Series A funding round, which was described as the largest of its kind in the Middle East and North Africa, also saw participation from other public and private institutions, including Saudi Venture Capital Company, Saudi Technology Ventures, and Olayan Financing Company, according to the July 30 announcement.

The latest capital injection will be used to develop the firm’s product offering and geographical expansion, the statement noted.

Boston-founded Intelmatix, now with operations in Riyadh and London, has developed an AI platform to help businesses overcome the “AI skills shortage” and the “considerable investment of build versus buy,” according to Co-Founder and CEO Anas Alfaris.

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The announcement comes as oil-dependent economies, like the United Arab Emirates and Saudi Arabia, have increasingly committed to the AI sector through billion-dollar investments. The UAE reportedly plans to invest more in AI as part of its partnership with the United States. Through the government-backed G42, the Emirates looks to become a global leader in the sector.

Meanwhile, Prosperity7 Ventures, the $3 billion fund of Saudi Aramco’s venture capital arm, participated in a $400 million funding round for China’s Zhipu AI in June, marking the first known high-profile foreign investment in a Chinese generative AI project.

“This investment in Intelmatix aligns with our commitment to support disruptive AI technologies that address complex challenges and unlock new growth opportunities,” said Yousef Albabtain, partner at Shorooq Partners.

Shorooq is among the most active technology investors in the Middle East, having invested in agri-tech and fintech firms in the region. It’s backed by sovereign wealth funds Mubadala Investment Co., ADQ, and Korean Venture Investment Corp.

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