Saudi-based venture capital firm STV has officially closed its US$100 million STV NICE Fund I, marking a major milestone in the region’s technology investment landscape. Designed to support technology startups across Saudi Arabia, the fund introduces a unique financing model that prioritizes non-dilutive, Sharia-compliant capital to fuel business growth.
This fund marks the finalization of one of the most innovative funding instruments in the Middle East’s startup ecosystem. Rather than offering traditional equity investments, STV NICE Fund I provides alternative financing that allows founders to retain ownership while accessing the capital needed to scale operations. The fund’s architecture aims to fill a significant gap in the Saudi financial market—offering growth-stage startups a viable path without giving up equity or control.
Strategic Backing Reflects Broader National Vision
The fund’s structure draws strong support from strategic financial entities. SAB Invest’s Alternative Financing Fund and the National Technology Development Program (NTDP) stand as the two major institutional backers. Their involvement reflects a larger national effort to build a thriving technology sector in line with Saudi Arabia’s Vision 2030.
In addition to institutional support, several well-established family offices have joined the initiative. These private capital partners bring not only funding but also long-term commitment and regional expertise. Their engagement showcases growing confidence in Saudi Arabia’s startup ecosystem and its potential for high-impact innovation.
STV, already recognized as one of the largest venture capital firms in the MENA region, has taken a bold step with this fund. Instead of following conventional venture routes, the NICE Fund I introduces a financing model more aligned with local business culture and Islamic financial principles. The result is a tailored instrument that meets the financial and ethical preferences of founders and investors alike.
Focus on Growth-Stage Tech Startups
The NICE Fund I specifically targets growth-stage technology startups that have already demonstrated product-market fit and revenue traction. These companies often face a funding dilemma: they need significant capital to scale but hesitate to dilute equity or cede board control.
The fund offers an alternative. It provides capital in a non-dilutive manner, which means founders do not need to give up any ownership in exchange for funding. This structure allows them to scale operations, expand geographically, or invest in R&D without weakening their influence over the company’s strategic direction.
By focusing on non-dilutive growth capital, STV encourages long-term founder commitment and preserves alignment between company leadership and business goals. At the same time, the model opens doors for capital-hungry startups that seek ethical and ownership-friendly funding.
Sharia-Compliant Financing: Innovation Meets Faith
One of the fund’s most defining characteristics is its strict compliance with Sharia principles. The Islamic finance market, worth trillions globally, continues to expand rapidly, and Saudi Arabia plays a leading role in shaping its future. STV designed the NICE Fund I to meet Islamic ethical standards while supporting innovation.
This Sharia-compliant structure prohibits interest-based transactions and speculative investment behavior. Instead, the fund structures its deals around profit-sharing, leasing, or asset-backed models that align with Islamic jurisprudence. These financial mechanisms not only conform to religious norms but also promote responsible, transparent business practices.
In a region where faith significantly influences business conduct, the STV NICE Fund I breaks new ground by combining Islamic finance with venture growth strategies. This approach allows startups in conservative sectors or regions to participate in the innovation economy without compromising their values.
A Unique Model in a Growing Market
Saudi Arabia’s technology and innovation sectors are experiencing unprecedented growth. Government-led programs, such as the NTDP and Vision 2030, continue to inject momentum into entrepreneurship, digital transformation, and economic diversification.
The STV NICE Fund I arrives at a critical time. As more startups move beyond the seed and early stages, demand for growth-stage capital has surged. Traditional venture capital, while effective for some, often imposes trade-offs that many founders in the region are unwilling to make. Concerns over foreign ownership, governance rights, and religious restrictions limit the applicability of equity-based models in some contexts.
STV recognized this gap and created a fund that responds directly to these concerns. The NICE Fund I offers financial tools more in tune with local founders’ expectations. By doing so, it supports the continued rise of domestic champions in sectors such as fintech, logistics, e-commerce, healthcare, and AI.
Potential Impact on the Saudi Startup Ecosystem
The launch and final close of the STV NICE Fund I promises to reshape the investment landscape in Saudi Arabia. With $100 million available for deployment, the fund can back dozens of startups through tailored growth instruments.
These companies will gain the ability to accelerate without diluting their cap tables or navigating complex equity negotiations. That autonomy empowers founders to stay focused on product development, team building, and customer growth—factors that directly impact long-term viability and scale.
Additionally, the fund introduces a replicable model that may influence other financial institutions and venture firms across the region. As regulatory frameworks and investor preferences continue to evolve, the demand for alternative, Sharia-compliant, non-dilutive funding will likely grow.
Moreover, the NICE Fund I encourages a new form of collaboration between public and private stakeholders. NTDP’s involvement signals government endorsement, while family offices and institutional backers bring operational insights and capital strength. This alignment between public and private actors strengthens the overall tech investment ecosystem in Saudi Arabia.
STV’s Broader Vision
STV’s approach reflects its broader mission of backing visionary founders and building a knowledge-based economy in the region. The firm has already invested in several high-growth companies across various verticals and continues to identify transformative trends in emerging markets.
With the NICE Fund I, STV expands its toolkit and sets a new precedent for regional funding. The firm positions itself not just as a capital provider but also as an innovation enabler, ecosystem architect, and ethical investor.
The firm’s leadership emphasizes long-term value creation and regional impact. Through the NICE Fund I, STV intends to drive a new wave of innovation that balances business ambition with cultural authenticity.
Conclusion
The final close of the US$100 million STV NICE Fund I marks a pivotal moment for Saudi Arabia’s tech ecosystem. By providing Sharia-compliant, non-dilutive financing to growth-stage startups, the fund empowers founders to scale responsibly, ethically, and without compromising ownership.
As regional demand for alternative capital models rises, STV’s pioneering fund may set the standard for a new generation of venture funding in the Islamic world. It delivers capital while respecting cultural values, fills a critical gap in startup financing, and positions Saudi Arabia as a global leader in ethical innovation funding.
Through bold design and strategic vision, the NICE Fund I stands as more than a fund—it serves as a blueprint for the future of venture finance in the Middle East.