Egypt Leads MENA Startups as Region Raises $289 Million in May Funding

Startups in the MENA region raised $289 million across 44 deals in May 2025, reflecting a 25% increase from April and a 2% year-on-year rise, according to a report by Wamda. The majority of this funding came through equity investments, with debt financing accounting for 9% of the total amount.

Egypt emerged as the region’s leading startup ecosystem for the month, driven by Nawy’s $75 million round. Seven other Egyptian startups collectively raised $50 million, bringing the country’s total to levels last seen in July 2024. The UAE followed with $86.7 million raised across 14 deals, while Saudi Arabia saw $69 million in funding through 15 deals. Kuwait made a return to the investment landscape with two startups securing a combined $6 million.

Despite growing media attention and high-profile announcements, artificial intelligence startups in the Gulf attracted only $25 million across two deals. Fintech remained the most funded sector, with $86.5 million raised across 14 rounds. Proptech followed, buoyed by Nawy’s raise, while mediatech startups secured $32 million. The ConTech sector also saw a notable boost, with WakeCap bringing in $28 million.

The majority of the funding activity was concentrated in early-stage rounds, which totaled $161 million. Late-stage activity remained limited, with only one pre-Series C round recorded at $12 million. Business-to-business (B2B) startups led by model, accounting for $157 million raised from 29 deals. Hybrid B2B/B2C startups attracted $79 million, while business-to-consumer (B2C) startups trailed with $53 million raised by nine companies.

A pronounced gender disparity in funding distribution continued. Startups founded exclusively by men captured 82% of the total capital, while mixed-gender teams received 11%. Startups founded solely by women secured just 7% of the month’s total funding.