Startup funding in the Middle East and North Africa (MENA) saw a notable 60% surge in Q1 2025, reaching a total of $693 million, according to the latest Digital Digest report.
Despite the increase in total funding, the report recorded a 22% decline in the number of deals, totaling 137 transactions — indicating a shift toward fewer, higher-value deals.
Saudi Arabia led the regional investment landscape, capturing over 50% of the total funding value and 40% of the deal count, signaling a rapidly growing startup ecosystem in the Kingdom.
The United Arab Emirates followed, accounting for 41.2% of total funding and 31.4% of deals, while Egypt claimed 6.3% of funding and 11.7% of transactions, reflecting strong investor interest despite smaller funding volumes.
FinTech emerged as the top-performing sector, attracting 55% of total funding, spearheaded by standout deals like Tabby, which continues to be a key player in the region.
The data underscores that investment momentum in the MENA region remains strong, with an increasing focus on technology-driven startups, particularly in financial services — paving the way for continued growth and innovation in the near future.
