Dubai- and London-based startup 1001 has raised $30 million from investors including US venture firm Lux Capital and a unit of the Saudi sovereign wealth fund, Sanabil. The financing round was led by Lux Capital, with participation from 9Yards and Hanabi.
Bilal Abu‑Ghazaleh, founder and CEO of 1001, told Semafor that the war involving Iran had "zero impact" on fundraising discussions. He added that the conflict has prompted more companies to explore AI-driven solutions to build new supply chains and reduce costs, as the region seeks to lessen reliance on the Strait of Hormuz.
Operations and plans
1001 intends to work with the Gulf’s airlines, port operators and shipping companies by temporarily embedding engineers in their offices to address operational issues and develop AI-enabled products. Abu‑Ghazaleh said regional governments are pushing businesses to adopt the technology, creating opportunities for startups focused on practical applications.
"The Middle East is not necessarily going to compete in terms of frontier models, but in terms of applied AI, it’s a bit of a green space," Abu‑Ghazaleh said.
He left ScaleAI last year to found 1001 and aims to develop AI products for critical infrastructure companies in the Gulf and then sell them to international customers. He said expansion beyond the Gulf could begin within the next 12 months.
The company previously raised $9 million in a seed round in October. Abu‑Ghazaleh declined to disclose 1001’s valuation after the latest fundraising.
Broader context
Gulf countries have been investing heavily in AI, hoping the technology will help diversify their economies and position them as hubs for data processing and new businesses capable of exporting products to global customers. Investment funds, startups and sovereign-backed entities in the region have so far continued to raise capital despite the Iran war and attacks affecting Gulf countries.
