Startup funding in the Middle East and North Africa (MENA) climbed to new highs in September 2025, reaching $3.5 billion across 74 transactions, according to data from Wamda. The figure reflects a 914% month-on-month and 1105% year-on-year increase, compared with $337.5 million raised in August.
Even when excluding the $2.6 billion in debt financing, equity deals alone grew 147% month-on-month and 194% year-on-year, marking one of the strongest months on record for the region.
Saudi Arabia accounted for most of the growth, led by a series of large fintech rounds. These included Tamara’s $2.4 billion debt facility, Hala’s $157 million Series B, Lendo’s $50 million debt, and Erad’s $33 million debt financing.
In total, 25 Saudi startups raised $2.7 billion. Much of the activity coincided with Money20/20, a major fintech event, where 15 deals were announced.
The UAE maintained its position as the region’s second-largest market. Twenty-six startups in Dubai and Abu Dhabi raised $704.3 million, showing consistent investor interest in the country’s more developed ecosystem.
Elsewhere, Oman saw three startups raise $7.7 million, and six Moroccan startups collected $6.8 million. In contrast, Egyptian startups continued to face challenges, attracting only $3.2 million across seven deals amid macroeconomic and currency pressures.
Fintech was the top-performing sector, with $2.8 billion raised across 25 deals, heavily influenced by Saudi Arabia’s large transactions. Proptech followed at $528.6 million, almost entirely from Property Finder’s $525 million round.
Artificial intelligence startups secured $34.3 million from seven deals, while HR tech companies raised $24.2 million.
Although later-stage and debt financings boosted overall numbers, early-stage startups accounted for most deals. Fifty-five startups raised $129.4 million in early rounds, compared with four later-stage startups that attracted $699 million.
This contrast highlights a split in the ecosystem—volume in early-stage ventures alongside concentrated capital flowing into mature players.
For the first time, B2B2C startups led in terms of funding, raising $2.4 billion from 15 deals. Pure B2C ventures followed with $557.3 million across 23 deals, while B2B startups secured $456.3 million across 36 transactions.
This reflects a shift toward hybrid models that balance consumer and enterprise demand.
Funding distribution between genders showed little change. Male-founded startups captured $3.3 billion, while female-founded ventures raised just $1.1 million across four deals. Mixed-gender founding teams accounted for the remaining share.
Across Q3, MENA startups raised $4.5 billion through 180 deals, representing a 523% quarter-on-quarter increase. Year-to-date funding reached $6.6 billion through 514 rounds, surpassing most full-year totals since 2021.
Saudi Arabia again led the quarter with $3.2 billion across 62 deals, followed by the UAE’s $1.2 billion from 59 deals. Egypt ranked third at $22.3 million, while Iraq and Morocco recorded $16.5 million and $14.5 million, respectively.
Fintech continued to dominate, raising $3 billion across 41 startups. Proptech followed with $684 million, while e-commerce entered the top three with $265 million across 14 deals.
Of the 180 deals, 134 were early-stage, raising $538.3 million, while 17 later-stage rounds drew $981.3 million. Twelve startups opted for debt financing, pointing to greater diversification in capital structures.
Despite regional challenges, including political tensions and the war in Gaza, 2025 has marked a turning point for MENA’s venture capital landscape.
The region has attracted growing interest from sovereign wealth funds, family offices, and global venture investors, particularly in emerging technology verticals. If current momentum holds, 2025 could set an all-time record for funding in MENA, reshaping capital flows across the Arab world.
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By Proptechbuzz
By Ravi Kumar