Exclusive: US investors lead $30M funding for Gulf AI startup 1001

Dubai- and London-based AI startup 1001 has raised $30 million in a funding round led by US venture firm Lux Capital, with participation from 9Yards, Hanabi and Saudi sovereign wealth fund unit Sanabil. The company said it will deploy artificial intelligence to boost efficiency across the Gulf’s aviation, ports, shipping and energy infrastructure, and plans to expand beyond the region within the next 12 months. 1001 previously raised $9 million in a seed round in October.

“The Iran war had ‘zero impact’ on fundraising discussions,” said Bilal Abu-Ghazaleh, founder and CEO of 1001. “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.”

Context and details

Abu-Ghazaleh, who left ScaleAI last year to found 1001, described the company’s approach as hands-on and operational. 1001 plans to temporarily embed engineers inside Gulf airlines, port operators and shipping companies to diagnose operational problems and develop AI-enabled products that reduce costs and streamline supply chains. The move is aimed at a region increasingly focused on diversifying logistics and energy flows amid geopolitical tensions that have exposed vulnerabilities related to chokepoints such as the Strait of Hormuz.

• Lead investor: Lux Capital (US)
• Other investors: 9Yards, Hanabi, Sanabil (Saudi sovereign wealth fund unit)
• Round size: $30 million
• Previous financing: $9 million seed round in October
• Founder/CEO: Bilal Abu-Ghazaleh (former ScaleAI executive)

Abu-Ghazaleh told the newsroom that the conflict in the region has actually accelerated interest from firms seeking AI-driven efficiencies to “help build new supply chains and lower costs.” He framed 1001’s opportunity around practical, industry-specific AI — not developing large foundation models — and said governments across the Gulf are actively encouraging businesses to adopt such technologies. That combination, he argues, has created fertile ground for startups focused on applied systems rather than frontier-model research.

The company’s model of embedding engineers is intended to produce rapid proof points: operational fixes and prototype products that can be deployed across airports, ports and energy facilities. Abu-Ghazaleh said his ambition is to develop solutions for the Gulf’s critical infrastructure companies and then commercialize those products with international customers, signaling a path from regional pilot projects to global sales.

Outlook

With Lux Capital leading the round and Sanabil participating, 1001 has attracted both international venture capital and regional sovereign-backed capital. Abu-Ghazaleh declined to disclose a post-money valuation after the latest fundraise but said expansion beyond the Gulf could begin within 12 months. The company will now use the proceeds to scale its engineering teams, deepen customer engagements across aviation, ports and energy, and accelerate product development aimed at export markets.