Shared 06 June, 2025
The startup ecosystem in the Middle East and North Africa (MENA) showed renewed momentum in May 2025, raising a total of $289 million across 44 deals. This marks a 25% increase from April and a slight 2% uptick year-on-year. Debt financing made up just 9% of the overall investment volume, with most capital directed toward equity deals.
Egypt reclaimed its position as the region’s top-funded ecosystem, largely driven by Nawy’s impressive $75 million round. Beyond Nawy, seven other Egyptian startups collectively raised $50 million—activity levels not seen since July of last year.
The UAE followed in second place with $86.7 million raised across 14 deals. Saudi Arabia came close behind, attracting $69 million through 15 deals. Notably, Kuwait re-emerged on the investment map, with two startups securing a combined $6 million, placing the often-overlooked GCC member in fourth position.
Artificial intelligence drew significant attention in the Gulf last month, particularly following a visit by U.S. President Trump alongside leading AI executives from Silicon Valley. The trip prompted both Saudi Arabia and the UAE to unveil major initiatives aimed at boosting their local AI ecosystems.
Fintech once again proved its strength in the region, drawing $86.5 million through 14 funding rounds. Thanks to Nawy’s raise, proptech climbed to second place in terms of sectoral funding. Meanwhile, mediatech startups raised a total of $32 million from two deals, and contech startup WakeCap brought in $28 million.
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