Jordanian start-ups join the EU fintech ecosystem

The growing integration between Europe, the Mediterranean and the MENA region is reshaping the flow of capital and innovation. Against this backdrop, on 19 June, during the fourth edition of the PAM Economic Forum in Marrakesh, organised by the Parliamentary Assembly of the Mediterranean, SM Capital, a platform active in venture capital investments, and Oasis500, an Amman-based firm specialising in venture capital, signed an agreement with the aim of establishing a joint operational platform. The agreement is therefore not a traditional partnership, but a model designed to foster the creation of digital capital through co-investments, the sharing of deal flow, support for institutional investors and guidance for start-ups in their international expansion processes.

Among SM Capital’s initiatives is Faro Innovation Global, a late-stage venture capital fund operating in the United States, Southern Europe and the wider Mediterranean region. “Faro stems from the vision of creating an ecosystem across the wider Mediterranean, connecting Europe, North Africa, the Middle East, the Gulf and the United States,” explains Stiven Muccioli, founder and CEO of SM Capital. This approach is based on the conviction that the next cycle of value creation will be driven by the integration of large, mature technology hubs with emerging markets characterised by strong demographic and digital dynamism, with a particular focus on fintech, artificial intelligence and strategic technologies. On the other hand, there is Oasis500 which, with nearly 200 start-ups in its portfolio, represents one of the main gateways to the innovation market in the MENA region. “They have over 15 years’ track record in this field,” emphasises Muccioli.

The memorandum identifies a number of priority areas for collaboration, including fintech, digital payments, banking-as-a-service, embedded finance, cybersecurity and artificial intelligence applications. These sectors are set to play a central role in the economic transformation of the MENA region, where a young population, the rapid spread of digital technologies and the expansion of financial inclusion are fuelling growing demand for innovative services. In recent years, the Gulf and the Middle East have moved beyond being mere destinations for capital to establish themselves as significant ecosystems for innovation, thanks to a combination of strategic investments, technology-oriented industrial policies and growing entrepreneurial maturity. Europe and the Mediterranean can contribute to this process with industrial expertise, the ability to scale up operations and a wealth of regulatory experience that remains among the most advanced internationally.

The agreement between SM Capital and Oasis500 is specifically aimed at turning these complementary strengths into a permanent arrangement. For start-ups in the MENA region, this means easier access to European capital, expertise and opportunities for internationalisation without necessarily having to relocate their operational headquarters abroad. The roadmap envisages the selection of the first joint opportunities, meetings with institutional investors and initiatives to support the entrepreneurial ecosystem over the coming months. In the background, however, lies a broader challenge: redefining the Mediterranean’s role within the new trends in innovation and investment. ‘The Mediterranean is becoming a crucial element. Italia is a peninsula, and its natural sphere of business and influence has always been more closely linked to the Mediterranean than to continental Europe. Consequently, rediscovering this dimension is essential,” concludes Muccioli.