Silicon Valley is receiving tough competition from the Middle East and North Africa, as MENA startup funding has started increasing in 2025. It is fueled by Saudi Arabia’s record-breaking haul and fintech’s golden streak. With over billions of people and money flowing into the region, from sovereign wealth funds to international tech giants, it seems like everyone wants something from Saudi Arabia’s desert dream!
But the truth to be told, Saudi startup investments are not just about money but also about the momentum. From Riyadh to Cairo, Saudi Arabia’s government has started embracing technology, and the investors are betting big. With recent news claiming that MENA startup funding has increased, its founders are also trying to keep pace and build fast. Whether it is artificial intelligence, insurance technology, or a construction platform, MENA’s innovation is finally joining the race and catching up to its ambition.
Saudi Arabia’s Funding Powerhouse
Currently, Saudi startup investments have made it to many news channels and headlines as it has taken the center stage in H1 2025. It raised a total of $1.34 billion in startup capital, which signifies UAE startup growth in 2025. This is 64% of all MENA startup funding for the period and a huge 342% year-on-year increase as well. This is a great achievement and was powered by a potent mix of public and private capital as well. It also involved sovereign wealth involvement and aggressive domestic VC action!
The key factor to this MENA startup funding raise is fintech, which is a sector that led deal flow in Saudi Arabia with $969 million invested across 20 transactions. This is almost three-quarters of the total haul of the kingdom, which is very noteworthy! Other key sectors that are involved in the UAE startup growth are construction technology, which contributed $48 million, and property technology, which contributed $39 million. The local heavyweights STV, Wa’ed Ventures, and Raed Ventures also showed that homegrown capital is no longer playing second fiddle!
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Funding Breaks Record Despite Slowdown
The most important thing about the MENA startup funding is raising $2.1 billion over 334 transactions in H1 2025. This is an increase of 134% from the same period in the previous year, that is, 2024. Even though the startups showed a slowdown in the month of June, Q2 overall still logged an impressive amount of $583.4 million across 149 deals. Debt financing also accounted for $930 million, which is 44% of the total funding! This shows that startups and investors are open to all conditions in capital.
Fintech continues to reign as a kingpin and recently ranked $170 million in Q2. This was followed by property technology with a staggering $77 million, while the travel technology showed a promising picture with $40 million in its pocket! These are some important sectors that highlights a growing appetite amongst Saudi startup investments for infrastructure, mobility, and innovation. The broader picture of MENA startup funding is also quite promising and compelling as the region is maturing fast and attracting a lot of global capital.
UAE Startup Growth
The UAE, which stands for United Arab Emirates, remains a major player in the MENA startup funding by securing $541 million in funding across 114 deals in H1 2025. That is almost an 18% jump from 2024 and implies a strong signal of investors’ confidence in the technological startup and artificial intelligence of the UAE. Fintech again is the key player in the UAE startup growth by pulling in $265.8 million, with insurance tech pulling $55 million. On the other hand, Web3 and artificial intelligence attracted $44.7 million each, nodding to the country for pushing into the next-gen technologies and artificial intelligence.
Unlike other MENA nations, the debt also played a small role in the startup growth in the UAE by comprising just 19% of total deal volume. We also noticed a positive trend of female and mixed-gender teams on the rise, with around 8 women-led UAE startups raising $17.6 million. The mixed teams also raised $91.7 million, and this is just the beginning of inclusivity in one of the region’s most competitive sectors or markets.
A New Balance of Power
Despite ongoing financial challenges in Egypt, it raised $179 million in startup funding across 52 labels in H1 2025, which is a 106% increase from last year. Fintech continues to be the start by leading a charge with $85.3 million and thereby proving its dominance across MENA. Female-led startups raised just $425,000, mixed teams brought in a total of $23 million, proving that Egypt is also moving towards inclusivity.
Another big story in H1 2025 is the rise of debt financing, with $930 million raised via debt instruments. It is very much clear that the founders are now exploring new capital paths, and this trend, where debt options are helping startups scale without giving up equity. One thing is now for sure: MENA startup funding is no longer just a footnote but a headline!
