RIYADH: Saudi Arabia emerged as the Middle East and North Africa’s top-funded startup market in the first half of 2025, securing approximately 64 percent of the region’s total capital.
Investments in the Kingdom surged to $1.34 billion, representing a 342 percent increase compared to the same period in 2024, according to a report by Wamda and Digital Digest.
This performance, supported by sovereign wealth backing, targeted government incentives, and strong domestic venture activity, solidified Saudi Arabia’s dominance amid a broader regional funding rebound.
The Kingdom’s fintech sector accounted for the bulk of capital, raising $969 million across 20 transactions.
Construction tech and property tech followed with $48 million and $39 million, respectively.
Activity was led by local firms such as STV, Wa’ed Ventures, and Raed Ventures, with international participation also emerging — most notably JPMorgan’s involvement in a debt round raised by Saudi fintech Lendo.
Across the broader region, MENA startups raised $2.1 billion through 334 deals in the first half of 2025, up 134 percent from the same period in 2024.
Debt financing played a critical role in this growth, contributing $930 million — about 44 percent of the total.
Excluding debt, the year-on-year growth stood at 53 percent, indicating improved but more tempered equity market conditions.
The second quarter closed with $583.4 million invested across 149 deals, outperforming the same period of 2024 despite a slower June.
Fintech remained the region’s top-funded sector, securing $170 million in the second quarter, followed by property tech with $77 million and travel tech with $40 million.
The UAE recorded $541 million in investments across 114 deals in the first half, reflecting an 18 percent increase over the previous year.
Fintech led with $265.8 million, followed by insurance tech with $55 million, and Web3 and AI with $44.7 million each.
Debt made up 19 percent of total UAE deal volume, suggesting a comparatively robust equity environment.
Eight female-led startups in the UAE raised $17.6 million, while mixed-gender teams attracted $91.7 million.
In Egypt, startup funding climbed 106 percent to reach $179 million across 52 deals, despite sustained macroeconomic pressure and rising external debt.
Property tech led with $75 million, followed by fintech with $85.3 million and e-commerce with $24.8 million.
Female-founded startups raised $425,000, while mixed-gender teams secured $23 million.
Mid-stage investments dominated by capital volume, with $161 million allocated across 10 Series A rounds in the second quarter.
However, early-stage startups — defined as pre-seed to Series A — continued to account for the majority of transactions, capturing $568 million in the first half. Later-stage companies secured $431.7 million.
Fintech sustained its leadership across MENA in the first half, attracting 62 percent of total capital through 77 deals.
Venture studios ranked second, driven by a major investment in iMena Group, while property tech came third with $119 million raised across 16 startups.
Business-to-business models accounted for 70 percent of total first half funding, securing $1.5 billion across 197 transactions. Business-to-consumer and hybrid models attracted the remainder.
Despite record-breaking funding levels, gender disparities persisted. Startups led solely by men received nearly 89 percent of first half capital.
Female-founded ventures raised $84.5 million across 27 deals, while mixed-gender teams garnered $150 million through 48 deals.
ZabonEx raises $100k to optimize food supply chains in Oman
Oman-based predictive analytics startup ZabonEx has raised $100,000 in pre-seed funding, led by Future Fund Oman and ITHCA Group.
Founded in 2023 by Hatim Moosa and Almuhannad Al-Balushi, ZabonEx offers a B2B Software-as-a-Service platform that delivers real-time, customer-level demand forecasting for the food and beverage sector.
The funding will support enhancements to ZabonEx’s predictive engine, the expansion of its tech team, and the development of strategic partnerships within Oman’s food supply chain.
The startup is also building onboarding tools tailored to the local market as it prepares for regional expansion.
Qlub raises $30m to drive international growth
UAE-based fintech Qlub has raised $30 million in a new funding round to support its global expansion efforts.
The round was co-led by Shorooq Partners and Cherry Ventures, with participation from e&, Mubadala Investments, and Legend Capital.
Source : Arab News
