In September 2025, startup investments in the Middle East and North Africa (MENA) region soared to $3.5 billion across 74 deals, marking a 914 percent increase from August and a 1,105 percent rise year-on-year, with Saudi Arabia leading the surge by raising $2.7 billion through 25 startups.

For the third quarter of 2025, MENA startup funding reached $4.5 billion, a 523 percent quarter-on-quarter increase, driven primarily by record-breaking September investments.

Despite geopolitical challenges, the region's startup ecosystem remains dynamic, with notable funding rounds including EMMA Systems' seed funding for airport AI tools, MGX's investment in a $6.6 billion secondary sale of OpenAI shares, and YAL.ai securing $12 million in Series A to develop AI-powered telecom fraud prevention technology.

However, there is a significant funding disparity between male- and female-led startups, with males securing $3.3 billion compared to only $1.1 million for females, highlighting ongoing underrepresentation of female entrepreneurs.

Business models are shifting, with B2B2C startups leading in fundraising for the first time, raising $2.4 billion across 15 deals, indicating a growing preference for hybrid models that target both consumer and enterprise markets.

Major regional deals included AI-driven HR solutions from Engagesoft raising $3.5 million, healthcare AI startup Nuxera AI securing $2.5 million pre-seed funding, fashion retail expansion by Touche Prive with $5 million, and renewable waste management company Tagaddod raising $26.3 million in Series A.

The UAE continues to dominate as a mature startup hub, securing $704.3 million across 26 startups, while countries like Oman, Morocco, and Egypt raised significantly less, with Egypt facing ongoing macroeconomic challenges.

Early-stage startups accounted for the majority of deals, raising $129.4 million, while later-stage ventures attracted $699 million, reflecting investor interest in scaling proven startups.

Key Saudi deals included Tamara’s $2.4 billion debt facility, Hala’s $157 million Series B, Lendo’s $50 million debt raise, and Erad’s $33 million debt financing, mainly linked to fintech growth around the Money20/20 event.

Fintech remains the dominant sector with $3 billion in funding, largely driven by Saudi megadeals, followed by property tech with Property Finder’s $525 million funding, and emerging AI and HR tech sectors.

Year-to-date, MENA startups have raised a total of $6.6 billion through 514 funding rounds, already surpassing most previous years since 2021, with Saudi Arabia and the UAE leading in fintech investments.