Prime Highlights:
- Venture capital in the Middle East hit a record $2.77 billionin the first nine months of 2025, up 152% from last year.
- The UAE and Saudi Arabialed the surge, attracting $1.43 billion and $1.29 billion, respectively, with strong growth in both mega and early-stage deals.
Key Facts:
- Fintechand enterprise software were the top sectors for investment in the region.
- International investorsprovided 59% of funding in Q3 and led most deals over $20 million, showing the Middle East’s growing global appeal.
Key Background:
Venture capital in the Middle East reached a record $2.77 billion in the first nine months of 2025, says MAGNiTT. This is a 152% increase from last year, even as global investments in Southeast Asia, Africa, and Pakistan dropped.
The number of deals also increased by 10 percent to 388, reflecting growing investor confidence in the region’s maturing startup ecosystem. The third quarter proved especially strong, with $1.2 billion raised, the highest quarterly total on record, driven by three major rounds: XPANCEO’s $250 million Series A and Airalo’s $220 million Series C in the UAE, and Hala’s $157 million Series B in Saudi Arabia.
Philip Bahoshy, CEO of MAGNiTT, said the first nine months of 2025 marked “the recovery of the MENA venture capital ecosystem,” noting that the region outperformed Southeast Asia for the first time in the same period. He said the growth was driven by strong Series A and B deals, government support, and more interest from global investors.
In MENA, the Gulf countries led the way. The UAE raised $1.43 billion (up 188% from last year) and Saudi Arabia raised $1.29 billion (up 158%). Both countries saw growth in big and smaller deals, with early-stage investments also rising. Egypt, however, saw funding drop by 37%.
Fintech and enterprise software were the most popular sectors for investment. Fintech startups secured $880 million, up 248 percent from last year, supported by major rounds from Tabby and Hala. Enterprise software firms raised $320 million across 52 deals, including Cadena’s $183 million mega round.
Among emerging markets, the Middle East stood out. Africa saw a small increase of 8% to $839 million, while Southeast Asia fell 48% to $2.5 billion, its weakest quarter in seven years.
International investors drove the Middle East’s growth, funding 59% of deals and leading most over $20 million.
