MENA Startups Raise Record $7.5 Billion in 2025 as Region Cements Global Tech Hub Status

The Middle East and North Africa startup ecosystem shattered all previous records in 2025, pulling in $7.5 billion across 647 startups — a staggering 225% increase over the prior year. The surge signals a decisive shift: the region is no longer an emerging market for venture capital, but a maturing global tech hub.

Key Highlights

$7.5 billion raised across 647 startups in 2025
225% year-over-year growth in total funding value
Saudi Arabia led with $5 billion across 211 deals
Fintech dominated with $4.4 billion (58% of total)
66 acquisitions recorded, a 54% increase over 2024

Saudi Arabia Takes the Lead

Saudi Arabia emerged as the undisputed leader of the MENA startup scene, commanding $5 billion in funding across 211 deals. The Kingdom accounted for roughly 64% of all capital deployed in the region during the first half of the year alone, a figure analysts describe as "policy-driven" — backed by sovereign wealth fund activity and aggressive government incentives under Vision 2030.

The UAE followed with $2 billion across 218 startups, maintaining its position as the region's most diverse startup ecosystem. Egypt held third place with $263 million across 89 deals.

Fintech Dominance and Mega-Rounds

Fintech was the undeniable star of 2025, attracting $4.4 billion — 58% of all funding. Proptech followed at $1 billion, while e-commerce secured $372.5 million.

The third quarter alone accounted for $4.5 billion across 180 deals, driven by a record-breaking September that saw $3.5 billion flow through 74 deals — a 914% month-on-month increase. These figures were largely propelled by mega-rounds, signaling that late-stage investors are increasingly confident in MENA ventures at scale.

B2B Outpaces B2C

In a trend mirroring global patterns, B2B startups attracted $2.8 billion, outpacing consumer-facing companies. Enterprise software, SaaS, and infrastructure plays are drawing attention from both regional and international investors seeking scalable, high-margin businesses.

Early-Stage Remains Active

Despite the headline-grabbing mega-rounds, early-stage activity stayed healthy. Seed and pre-seed rounds totaled $1.3 billion across 486 deals, indicating a robust pipeline of new ventures entering the ecosystem. Later-stage transactions (Series B and above) reached $1 billion across 44 deals.

Exit Activity Picks Up

The MENA exit landscape improved significantly in 2025, with 66 acquisitions recorded — a 54% increase year-over-year. Exits were concentrated in fintech, SaaS, and e-commerce, suggesting that the ecosystem is maturing beyond fundraising into meaningful liquidity events.

Tunisia's Emergence

Tunisia also made headlines when it entered the top three countries for a brief period in mid-2025, driven by Kumulus — a water generation startup that secured a $3.5 million seed round. The deal highlighted growing investor interest in climate tech and deeptech from North Africa.

What's Next for 2026

If 2025 was about proving the region can absorb large cheques, 2026 is shaping up to test where those cheques will go. AI-led mega-rounds and the industries forming around them are expected to drive the next wave of investment. With 127,000 startups and 62 unicorns now operating across MENA, the ecosystem's trajectory points firmly upward.

Source: Wamda