New data shows that Saudi Arabia topped the MENA startup funding market during the first half of 2025, having raised €1.34 billion in investments, a 342% increase compared to the same period the previous year.
This figure represents approximately 64% of the total investments in the region, which totaled $2.1 billion across 334 deals, according to a joint report issued by Wamda and Digital Digest.
The financial technology (FinTech) sector in Saudi Arabia accounted for the largest share of funding, amounting to $969 million across 20 deals. Construction and real estate technologies also emerged, with funding amounting to $48 million and $39 million, respectively. Among the companies participating in the funding were local entities such as STV and Wa’ed Ventures, along with international contributions, most notably from JPMorgan. Regionally, debt financing accounted for approximately 44% of total funding, reaching $930 million, indicating a diversity of funding sources. The figures also showed a 134% growth compared to the first half of 2024, while non-debt financing grew by 53%.
The UAE ranked second after Saudi Arabia, with startups raising $541 million through 114 deals, an 18% increase over the previous year. Fintech also led the way, followed by insurtech, Web3, and artificial intelligence.
In Egypt, funding increased by 106% to $179 million across 52 deals, despite ongoing economic challenges. Investments were concentrated in the real estate, financial technology, and e-commerce sectors.
In terms of founder type, male-led companies raised approximately 89% of the funding, while female-led companies raised $84.5 million through 27 deals, and mixed-gender teams raised $150 million through 48 deals. This increased activity reflects a significant growth in the region’s entrepreneurial ecosystem, supported by a growing government role, sovereign investments, and improved financing and innovation tools.
