Saudi Arabia has emerged as the leading hub for startup funding in the Middle East and North Africa during the first half of 2025, securing $1.34 billion. This accounted for 64% of the region’s total capital, marking a 342% increase from the previous year. The surge was fueled by contributions from sovereign wealth funds, government initiatives, and growing domestic venture activities.
In Saudi Arabia, the fintech sector was the frontrunner, attracting $969 million across 20 deals. Construction technology followed with $48 million, and property technology garnered $39 million. Local investors such as STV, Wa’ed Ventures, and Raed Ventures were particularly active, alongside international players like JPMorgan, which participated in a debt round for the fintech firm Lendo.
Across the MENA region, startup funding reached $2.1 billion from 334 transactions, reflecting a 134% rise compared to the same period in 2024. Debt financing contributed $930 million, about 44% of the total, while equity funding made up 53%. In the second quarter alone, $583.4 million was raised across 149 deals, surpassing the figures from Q2 2024 despite a slowdown in June.
Regionally, fintech continued to dominate, securing $170 million in Q2, followed by property tech with $77 million and travel tech with $40 million. The UAE reported $541 million across 114 deals, an 18% increase year-on-year. Its fintech sector raised $265.8 million, while insurance tech attracted $55 million, and both Web3 and AI startups secured $44.7 million each.
In the UAE, debt represented 19% of deal volume, indicating a preference for equity-driven investments compared to other countries. Eight female-led startups in the UAE raised $17.6 million, while mixed-gender teams accounted for $91.7 million.
Meanwhile, Egypt saw startup funding reach $179 million across 52 deals, a 106% increase year-on-year despite ongoing economic challenges. Fintech led the way with $85.3 million, followed by property tech with $75 million, and e-commerce with $24.8 million. Startups founded by women raised $425,000, while those led by mixed-gender teams secured $23 million.
