Venture capital funding in the Middle East surged to a record $2.77 billion in the first nine months of 2025, up 152% year on year, according to MAGNiTT. The number of deals rose 10% to 388, signaling strong investor confidence even as global markets cooled.
The UAE and Saudi Arabia led the region’s growth. The UAE attracted $1.43 billion, while Saudi Arabia followed closely at $1.29 billion, both seeing massive gains in mega and non-mega rounds. Key deals included XPANCEO’s $250 million Series A, Airalo’s $220 million Series C, and Hala’s $157 million Series B.
MAGNiTT CEO Philip Bahoshy said the Middle East venture scene has outperformed Southeast Asia for the first time. Strong Series A and B pipelines, combined with sovereign fund backing and global investor interest, are driving momentum.
Fintech remained the dominant sector, with funding soaring 248% to $880 million, led by Tabby and Hala. Enterprise software also grew sharply to $320 million across 52 deals.
Despite global headwinds, early-stage investment in the Middle East rose 17%, supported by record deal counts in Saudi Arabia and the UAE. Non-mega funding climbed 71% year on year, showing deeper market strength.International investors accounted for 59% of total funding, underscoring the region’s growing role as a top emerging market hub.