MUSCAT: Oman-based venture capital firm Phaze Ventures has secured more than $40 million in investor commitments for two new funds targeting over $75 million combined, with investments planned in artificial intelligence and advanced technology companies internationally and in the Sultanate of Oman.
The firm announced on Wednesday that more than $10 million had already been invested across 10 companies through the new funds, while discussions continued with investors to reach the combined fundraising target.
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 AI and advanced technology companies in international markets.
The second vehicle, Phaze Ventures Oman Fund, is anchored by Future Fund Oman, an OIA investment initiative supporting private-sector development and economic diversification.
The company has not disclosed the individual fundraising targets for the two funds or the amount allocated specifically to Omani startups.
The initial investments include Arabic.AI, which develops Arabic-language enterprise AI solutions; Sully.ai, a healthcare technology company; Andromeda Surgical, a developer of AI-guided surgical robotics; Boardy.ai, an AI-powered professional networking platform; and Metal, which provides technology tools for startup fundraising.
Several of these companies have attracted backing from international venture capital investors, including Andreessen Horowitz, 8VC, Standard Capital and Y Combinator.
Andromeda Surgical raised $15 million in a Series A funding round led by Standard Capital in August 2026. Phaze Ventures had invested in the company at an earlier stage and participated in the subsequent financing.
Abdullah Al Shaksy, Co-founder and Chief Executive Officer of Phaze Ventures
In separate written responses to Oman Observer, Abdullah Al Shaksy, Co-founder and Chief Executive Officer of Phaze Ventures, said access to financing remained a challenge for Omani startups seeking to expand after establishing commercially viable products.
“Funding can be a constraint, but mostly at later stages, once a company has proved its product and needs capital to expand,” he told Oman Observer.
He also emphasised the importance of providing Omani technology businesses with access to customers and investment opportunities beyond the domestic market.
“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 AI applications using their industry experience and knowledge of market requirements.
He said the Oman-focused fund would invest in a selected number of AI-enabled businesses alongside private investors on commercial terms.
Phaze Ventures has previously invested in Omani-linked technology businesses that expanded internationally, including online automotive platform Carzaty, which was acquired by Mexico’s Kavak in 2022.
Another portfolio company, eMushrif, announced a $7.5 million funding round in January 2026, involving several investors, including Phaze Ventures.
Established in 2018, Phaze Ventures is headquartered in Muscat and has a presence in Dubai and Riyadh. The firm manages capital on behalf of more than 50 investors, including institutional investors, corporations and family offices.
The announcement comes as Oman implements the second phase of its National Digital Economy Programme for 2026–2030, which targets RO 300 million in technology investment and the creation of 3,000 direct jobs annually.
The new funds represent a separate private-sector investment initiative, and their contribution to Oman’s technology sector will depend on the capital ultimately invested in domestic businesses and their ability to expand into regional and international markets.
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