Startup investment across the Middle East and North Africa (MENA) reached a new high in 2025, marking the strongest funding performance the region’s startup ecosystem has recorded to date. According to Wamda’s annual investment report, 647 startups raised a combined $7.5 billion during the year, representing a 225% year-on-year increase in total funding value.

While debt financing played a significant role, accounting for $4 billion of capital raised, the underlying investment environment remained resilient. Excluding debt from both years, equity-led investment still grew by 77% YoY, indicating that 2025’s surge reflected broader investor engagement rather than a purely leverage-driven rebound.

Investment momentum strengthened markedly in the second half of the year. Between July and December, 310 startups raised $5.7 billion, compared with $2 billion raised by 335 startups in the first half. The third quarter alone accounted for $4.5 billion across 180 deals, driven largely by a series of mega transactions involving XPANCEO, Ninja, Tabby, Lendo, Property Finder, and Tamara’s landmark $2.4 billion deal, which significantly shaped annual totals.

Geographically, funding activity remained concentrated in the region’s most mature markets. Saudi Arabia emerged as the most funded ecosystem, raising $5 billion across 211 deals, followed by the UAE with $2 billion raised across 218 startups. Egypt ranked third, securing $263 million across 89 deals, as deal activity increased despite a decline in total funding value.

Despite the prominence of large later-stage rounds, early-stage startups dominated investment activity, raising $1.3 billion across 486 deals, compared with $1 billion deployed through 44 later-stage transactions, underscoring the depth of the region’s startup pipeline.

Sectorally, fintech remained the dominant vertical, attracting $4.4 billion, or 58% of total funding, followed by proptech with $1 billion raised and e-commerce with $372.5 million. Investor preference continued to tilt toward enterprise-focused models, with B2B startups raising $2.8 billion, outpacing B2C funding.

Exit activity also picked up pace in 2025, with 66 acquisitions recorded, marking a 54% year-on-year increase, largely concentrated in fintech, SaaS, and e-commerce, and centred in the UAE, Egypt, and Saudi Arabia.

Overall, 2025 reflects a MENA startup ecosystem that has entered a phase of scale and selective consolidation, setting the stage for a more disciplined and mature growth cycle ahead.

Read the full report here