How did Saudi Arabia lead MENA startup funding in H1 2025?

In the first half of 2025, Saudi Arabia secured its position as the leading startup market in the Middle East and North Africa by raising $1.34 billion, which constitutes 64% of the region’s total funding. This marked a 342% increase from the previous year, driven by sovereign wealth support, government incentives, and active domestic ventures. The fintech sector dominated, raising $969 million across 20 deals. Other sectors like construction tech and property tech also saw significant investments. Local firms such as STV, Wa’ed Ventures, and Raed Ventures played key roles, with notable international involvement from JPMorgan in Saudi fintech Lendo. Overall, MENA startups raised $2.1 billion through 334 deals, a 134% increase from the previous year, with debt financing contributing significantly. The UAE and Egypt also saw notable growth in startup investments, with fintech remaining the top-funded sector across the region. Despite the growth, gender disparities persisted, with male-led startups receiving the majority of funding.