Saudi Arabia Leads Middle East Venture Funding With $1.72B in 2025

Saudi Arabia led the Middle East venture capital market in 2025, raising $1.72 billion across a record 257 deals, according to data published by MAGNiTT. Funding in the Kingdom rose 145% year on year, while deal volume increased 45%, placing Saudi Arabia first in regional deal activity for the first time.

Philip Bahoshy, founder and CEO of MAGNiTT, said investor behaviour shifted during the year, with capital becoming more selective and diligence moving away from momentum toward fundamentals, scalability, and clearer paths to liquidity. He described the Gulf Cooperation Council as a “durable destination for venture and private investment” despite global uncertainty.

Across the Middle East, venture funding reached $3.43 billion in 2025, up 89%, with 581 transactions, a 13% increase. The region also recorded $1 billion in mega deals and surpassed Southeast Asia in deal activity for the first time. When expanded to the Middle East and North Africa, total funding reached $3.8 billion across 688 deals, up 74% in value.

Saudi Arabia’s performance stood out against other emerging venture markets. While total capital across emerging markets rose marginally to $9.63 billion, deal activity fell to a seven-year low. Southeast Asia saw funding decline 29% to $4.08 billion, while Africa recorded growth of 28% to $1.45 billion. By deal count, Saudi Arabia ranked second globally after Singapore and ahead of the UAE.

Fintech was the leading sector in the Middle East, attracting $1.04 billion across 152 deals, followed by e-commerce and retail, sports and fitness, telecoms, and enterprise software. Late-stage activity was concentrated in five mega rounds, including raises by Ninja, HALA, Tabby, XPANCEO, and Aialo, with participation from international investors.

MAGNiTT reported that exits in the Middle East increased 19% to 32 transactions, while MENA mergers and acquisitions rose 41%, driven largely by local acquirers.