Startups in the MENA region raised $494 million last month, marking a staggering 457% year-on-year surge, according to Wamda and Digital Digest.

Saudi Arabia and the UAE drove the bulk of this growth, securing 92% of total investment. Saudi startups led the region with $250.3 million across 25 deals, while the UAE followed with $203.5 million across 15 deals.

The UAE, particularly Dubai and Abu Dhabi, has solidified its position as a hub for innovation, attracting global investors eager to tap into the region’s expanding consumer market. Saudi Arabia is also ramping up its support for startups, aligning with its Vision 2030 goals to diversify the economy.

In February, debt financing accounted for just 15% of total investments, a sharp drop from 90% in January. The number of deals surged to 58, up from 37 in the same period last year. Fintech dominated funding activity, securing $274 million, followed by insurtech with $55 million and logistics with $28.5 million.