Speaking at the recent Investors Summit organised by the Middle East Venture Capital Association (MEVCA) in Abu Dhabi, Mohammed Muhtaseb, CEO of the Innovative Start ups and SMEs Fund (ISSF), delivered a powerful message to the region’s investment community. He highlighted the urgent need for sovereign funds to evolve their strategies to more effectively catalyse the entrepreneurship ecosystems across MENA.
From Grants to Catalysts
Muhtaseb argued that amidst rapid global and regional economic shifts, it is essential to redefine the role of sovereign capital through “smarter capital engineering.” He called for a move away from traditional investment models that are often governed by a “grant-based” mentality.
Instead, he proposed that these funds should transform into powerful enablers for the innovation economy in Jordan and the wider region, driven by principles of feasibility and long-term sustainability.
Engineering a Sustainable Investment Ecosystem
The vision presented by Muhtaseb aims to shift sovereign investment funds from symbolic participants to a “driving and catalytic force” within the venture landscape.
He stressed that the primary objective should not be to simply inject capital or increase the number of portfolio companies without regard for their economic viability. The focus, he explained, must be on building an integrated investment ecosystem that can lead the MENA innovation economy on solid foundations of financial sustainability. This involves mobilising private venture capital through profitable investments that circulate and create value within the economy over the long term.
Balancing Profit with Economic Impact
Addressing a key concern for many fund managers and limited partners, Muhtaseb explained the ISSF’s own investment strategy, which carefully balances the pursuit of financial returns with the goal of maximising economic impact.
He affirmed that within the fund’s policy, investment yield and economic development are viewed as complementary, rather than conflicting, objectives. This dual-focus approach ensures the fund’s continuity while actively contributing to the growth and maturation of the local and regional startup scene.
About The Innovative Start ups and SMEs Fund (ISSF)
The Innovative Startups and SMEs Fund (ISSF) is a private sector-managed fund based in Jordan. It was established to increase early-stage equity finance for innovative small and medium-sized enterprises (SMEs) in the country. The fund invests in both direct and indirect capacities, supporting startups through direct investments and also by investing in venture capital funds that serve the Jordanian ecosystem.
Source: Zawya
