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ikoo, the integrated digital marketing solution provider, just announced a major partnership with STC Ventures, backed by Saudi Telecom Company, which has invested US$3 million in the company.

The investment will help ikoo explore more markets as well as unveil a host of new initiatives including its video network, performance network, audience data and other expansion plans. The company will also unveil its regional expansion strategy soon.

This is the third investment by STC Ventures this month. The company had acquired a significant minority stake in Acadox earlier this month and was part of a $12 million round in global translation platform Gengo last week.

ikoo was founded in 2005, knows as E-Marketing at the time, was later acquired by Jabbar Internet Group in early 2010. ikoo’s Arabic Display Network in MENA cover more than 120 websites of leading publishers in the fields of sports, women, news, business, automotive, and more. it also recently announce the launch of its Arabic Video Network in Beta in late 2012.

Digital advertising spend in MENA is expected to grow at fast pace, with more and more brands embracing digital and shifting more ad money explains Angus Paterson, Partner of STC Ventures. “(…) Digital’s share of total ad spend also still extremely modest compared to its share of media consumption and also to rates seen in more developed advertising marketplaces. In addition overall ad spend per capita remains a fraction of spend per head in the US and Europe, which provides strong scope for further overall market growth,” he added.

Statista predicts that 35%-40% growth for online advertising in the Middle East and Africa, reaching 1.24 billions in 2013, 1.71 in 2014, 2.22 in 2015, 2.81 in 2016.

Similar to the Gengo investment, this move is sure to increase the competition in with regional competitors, in this instance Hsoub Ads, an advertising platform that focuses on the Middle East and North Africa region. Hsoub Ads also introduced video ads to its platform (back in May of 2012), in addition to mobile web and in-app ads. More recently, the company announced that its platform had crossed 200 million monthly impressions and introduced pre-roll video & rich-media ads.