The third quarter of 2025 opened with a strong start as startup investment in the Middle East and North Africa (MENA) region surged in July. Fifty-seven startups raised a total of $783 million, marking a 1,411 percent jump month-on-month and more than double the total from July last year.
The sharp rise was driven largely by two mega deals that dominated the funding landscape, said Wamda in its latest report.
Saudi Arabia tops regional funding
Saudi Arabia retained its position at the top of the regional funding table, with 16 deals worth $396.5 million. The UAE followed closely, attracting $359 million across 22 startups, a reflection of its continued appeal to both regional and global investors.
The month also saw a shake-up further down the rankings. Iraq climbed to third place with a single $15 million deal for InstaBank, displacing Egypt from the top four. Meanwhile, Morocco took fourth place, driven by Ora Technologies’ $7.5 million round.
Egypt, once a regular fixture in the top three, slipped to fifth, with just $4 million raised across seven startups — a decline likely influenced by macroeconomic pressures and currency volatility.
For the first time in months, deeptech led the sector funding, attracting $250.3 million across four deals. E-commerce made a strong comeback, also securing $250 million, thanks to Ninja’s record-breaking raise. SaaS startups ranked third with $89 million across 12 deals, while fintech dropped to fourth, with $61 million invested in 11 transactions.
The shift reflects a growing appetite for IP-heavy, innovation-led ventures and scalable consumer platforms across the MENA startup landscape, even as fintech funding cools.
Two mega deals account for 56 percent of July’s total
While many MENA startups did not disclose their funding stages, two mega deals—Ninja and XPANCEO — accounted for 56 percent of July’s total. Later-stage rounds brought in $158 million, while Series A deals raised a combined $267 million from three startups.
An additional 26 early-stage startups secured $36 million. Debt financing remained marginal, making up just 2 percent of the month’s total, underscoring the dominance of equity-led transactions.
The report also revealed that consumer-facing MENA startups once again took centre stage. Led by XPANCEO and Ninja, B2C companies captured $534 million in funding. B2B models followed, securing $202.4 million across 32 deals, with the remainder flowing to D2C and hybrid-model ventures. The swing towards B2C marks a reversal from earlier in the year, when enterprise solutions dominated investor interest.
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MENA startup funding surpasses 2024 levels
Seven months into 2025, MENA startup funding has already surpassed the full-year total for 2024 — a clear sign that the region’s innovation landscape is maturing. With Saudi Arabia and the UAE drawing record-breaking rounds, and emerging markets like Iraq and Morocco making surprise appearances in the top rankings, investor interest is diversifying beyond traditional hubs.
The combination of large-scale late-stage bets and a steady flow of early-stage deals suggests that global investors see both immediate scale opportunities and long-term pipeline potential.
If this momentum holds, MENA could cement its position as a growth hotspot in sectors where it holds unique advantages – from deeptech and AI to logistics, energy and cross-border commerce – leveraging its strategic geography, youthful talent pool, and increasingly supportive policy frameworks.
