Saudi Arabia has emerged as the top destination for startup funding in the MENA region, raising $1.34 billion in the first half of 2025 — a staggering 342% increase compared to the same period last year. This represents 64% of the region’s total capital, according to a report by Wamda and Digital Digest.
The surge was driven by strong government incentives, sovereign fund participation, and active local VC firms such as STV, Wa’ed Ventures, and Raed Ventures. Fintech dominated with $969 million raised across 20 deals, followed by construction tech and property tech.
Across MENA, startups secured $2.1 billion in 334 deals. Debt financing played a crucial role, contributing $930 million — about 44% of total funding.
The UAE followed with $541 million in 114 deals, led by fintech, insurtech, and Web3. Egypt saw a 106% jump, raising $179 million despite economic pressure.
Meanwhile, Oman-based ZabonEx raised $100K to enhance food supply chains, and UAE-based Qlub secured $30M for global expansion. Lime Consumer Finance also launched in Egypt to meet growing demand for education financing.
Despite a record first half, gender gaps persist: male-only teams received 89% of funding. Female-founded startups attracted $84.5M, while mixed-gender teams raised $150M.