Saudi Leads Regional Venture Capital Growth With 50% of Investments
Venture capital investments in the MENA region totaled USD 690 million across 137 deals.
The venture capital sector in the Middle East has experienced a significant boom, with investments growing by 60% in Q1 of 2025 compared to the same period last year. Saudi Arabia has emerged as the dominant player, securing 50% of the total investments in the region, equating to USD 348 million in funding. The surge in venture capital deals is highlighted by Tabby, the region's leading "Buy Now, Pay Later" (BNPL) service provider, which secured the largest investment in the MENA region. Tabby completed a Series E funding round worth USD 160 million, bringing its valuation to USD 3.3 billion and cementing its place as a major success story in the Saudi market. Data from the Al-Mujaz Digital platform indicates that the total value of venture capital investments in the MENA region for Q1 2025 exceeded USD 690 million across 137 deals. Saudi Arabia's dominance is evident, with other major markets like the UAE and Egypt following with 41% and 6% of the total investments, respectively. The second-largest deal was for UAE's FLOW48, which specializes in lending to small and medium-sized businesses, securing USD 69 million in funding. Following this, UAE’s AppliedAI, which focuses on automating operations in banks, raised USD 55 million. Additional funding rounds include Saudi Arabia’s Rize, a “Rent Now, Pay Later” service provider, which secured USD 35 million, and UAE’s Nymcard, which raised USD 33 million for its payment solution.
