2025 Year in Review: Investments in MENA (Wamda)

Summary

• A total of 647 MENA startups raised $7.5 billion in 2025, representing a 225% YoY increase in total investment.p.2
• Saudi Arabia reclaimed the top position in MENA startup funding, securing $5 billion across 211 deals.p.4
• Fintech retained its position as the primary funded sector, attracting $4.4 billion across 141 startups.p.11
• M&A activity expanded by 54% YoY across the MENA region, with 66 total acquisitions recorded in 2025.p.27

Key insights

1. Regional investors drove ecosystem activity by participating in 413 transactions, representing 64% of total deal volume.p.2
2. The UAE captured $2 billion across 218 startups, maintaining its position as the second most funded MENA ecosystem.p.4
3. Early-stage companies attracted the majority of volume and funding, raising $1.3 billion across 486 deals.p.8
4. Enterprise-focused B2B startups led model categories by securing $2.8 billion across 383 transactions.p.10
5. Proptech became the second most funded sector in MENA with $1 billion across 36 startups, largely fueled by Property Finder.p.11
6. Funding for female-led startups saw a slight increase to 2.2% of total funding in 2025 from 1.2% in 2024.p.13
7. Debt financing dominated Saudi Arabian funding, comprising 67% of total capital and 92% of fintech funding in the country.p.17
8. Total funding in Egypt declined by 21% YoY to $263 million despite a slight rise in deal volume to 89 transactions.p.24
9. The UAE served as the primary hub for startup exits in the region, hosting 21 of the 66 acquisitions in 2025.p.27