Phaze secures over $40m for AI funds

Oman-based venture capital firm Phaze Ventures has secured more than $40 million in investor commitments for two new funds targeting over $75 million, although the share of financing earmarked for Omani startups has not been disclosed.
The funds will invest in artificial intelligence and advanced technology companies internationally, while providing a separate financing channel for businesses developing AI applications in Oman.
Phaze Ventures said on Wednesday that more than $10 million had already been invested across 10 companies through the new funds, with further fundraising discussions under way.
The first vehicle, Phaze Ventures Fund II, is anchored by ITHCA Group, a subsidiary of Oman Investment Authority (OIA), Ominvest and the Oman LNG Development Foundation. It will focus on early-stage technology investments in international markets.
The second, Phaze Ventures Oman Fund, is anchored by Future Fund Oman, an OIA investment initiative supporting private-sector development.
The company has not disclosed the individual size of either fund, the amounts committed by institutional investors or how much of the secured capital will be invested domestically.
The distinction is important because the $75 million target covers both international investments and Omani businesses, rather than representing funding exclusively available to the domestic startup sector.
The initial portfolio includes Arabic.AI, which develops Arabic-language enterprise AI technology; Sully.ai, which provides AI applications for healthcare; Andromeda Surgical, a developer of AI-guided surgical robotics; and technology platforms Boardy.ai and Metal.
Several of these businesses have also attracted backing from international venture capital investors, including Andreessen Horowitz, 8VC and Y Combinator.
In separate written responses to the Observer, Abdullah Al Shaksy, Co-founder and Chief Executive Officer of Phaze Ventures, said financing remained a challenge for Omani startups seeking to grow beyond their initial development stages.
“Funding can be a constraint, but mostly at later stages, once a company has proved its product and needs capital to expand,” he told the Observer.
He said access to established customers was equally important for technology businesses seeking to enter regional and international markets.
“We need to do more as local anchor customers, investors and door-openers to give our homegrown businesses the foundation they need to scale abroad,” he said.
Al Shaksy identified energy, logistics, finance and healthcare as sectors where Omani entrepreneurs could develop commercially viable AI applications.
Phaze Ventures has previously invested in Omani-linked businesses, including online automotive platform Carzaty, which was acquired by Mexico’s Kavak in 2022.
Another portfolio company, eMushrif, announced a $7.5 million financing round in January 2026, involving Phaze Ventures and other investors.
Founded in 2018, Phaze Ventures is headquartered in Muscat, with a presence in Dubai and Riyadh.
While the new funds widen investment opportunities, their contribution to Oman’s startup sector will depend on the amount of capital ultimately deployed locally and whether recipient businesses can secure customers, attract further financing and expand beyond the domestic market.