Saudi Arabia Tops MENA Startup Funding with $1.34bn in H1 2025

Saudi Arabia emerged as the leading destination for startup funding in the Middle East and North Africa during the first half of 2025, raising $1.34 billion and accounting for 64% of the region’s total capital. This figure represented a 342% year-on-year increase, driven by sovereign wealth contributions, government initiatives, and rising domestic venture activity.

The fintech sector dominated Saudi deal flow, attracting $969 million across 20 transactions, followed by construction technology with $48 million and property technology with $39 million. Local investors including STV, Wa’ed Ventures, and Raed Ventures were most active, with international involvement such as JPMorgan’s participation in a debt round for fintech firm Lendo.

Across the region, total startup funding reached $2.1 billion from 334 transactions, marking a 134% increase compared to the same period in 2024. Of this amount, $930 million—about 44%—came through debt financing, while equity funding accounted for 53%. In the second quarter alone, $583.4 million was raised across 149 deals, surpassing Q2 2024 figures despite a funding slowdown in June.

Fintech remained the most funded sector regionally in Q2, securing $170 million, followed by property tech with $77 million and travel tech with $40 million. The UAE recorded $541 million across 114 deals, reflecting an 18% annual increase. Its fintech startups raised $265.8 million, while insurance tech secured $55 million, and both Web3 and AI startups raised $44.7 million each.

Debt represented 19% of UAE deal volume, suggesting a stronger equity-driven environment compared to other countries. Eight female-led UAE startups raised $17.6 million, with mixed-gender teams accounting for $91.7 million.

In Egypt, startup funding reached $179 million across 52 deals, up 106% year-on-year despite persistent economic challenges. Leading sectors included fintech with $85.3 million, 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.