Saudi Arabia has emerged as the Middle East and North Africa’s top startup investment destination in the first half of 2025, attracting around 64% of total regional capital, according to a report by Wamda and Digital Digest.

Fueled by sovereign wealth support, government-backed incentives, and a thriving domestic venture scene, investments in the Kingdom soared to $1.34 billion — a 342% year-on-year increase.

Fintech dominated Saudi Arabia’s startup landscape, drawing $969 million across 20 deals. Construction tech and property tech followed with $48 million and $39 million, respectively. Local firms like STV, Wa’ed Ventures, and Raed Ventures led investment activity.

Across MENA, startups secured $2.1 billion through 334 deals in H1 2025 — a 134% year-on-year increase. Debt financing contributed $930 million, or 44% of the total. Excluding debt, funding still rose 53%, signaling a cautiously improving equity landscape.

Q2 alone recorded $583.4 million across 149 deals — outperforming the same period in 2024 despite a slowdown in June. Fintech remained the region’s top-funded sector with $170 million, followed by property tech at $77 million and travel tech at $40 million.

The UAE maintained its strong position, drawing $541 million across 114 deals — an 18% year-on-year rise. Fintech led with $265.8 million, followed by insurtech ($55 million), and Web3 and AI ($44.7 million each). Debt accounted for 19% of total funding, indicating a healthy equity environment.

Gender gaps persisted: female-founded startups in the UAE raised $17.6 million, while mixed-gender teams secured $91.7 million.

In Egypt, funding rebounded despite economic challenges, reaching $179 million across 52 deals — up 106%. Fintech and property tech led with $85.3 million and $75 million, followed by e-commerce with $24.8 million. Female-led startups raised just $425,000; mixed-gender teams secured $23 million.

Mid-stage investments dominated capital volume, with $161 million deployed across 10 Series A rounds in Q2. However, early-stage startups (pre-seed to Series A) remained the most active, accounting for $568 million in the first half, while later-stage firms attracted $431.7 million.

Business-to-business (B2B) models commanded the majority of investment, securing $1.5 billion across 197 transactions — 70% of total funding. Business-to-consumer (B2C) and hybrid models made up the rest.

Fintech remained the top-funded sector in MENA, securing 62% of total capital through 77 deals. Venture studios followed, boosted by a major investment in iMena Group, with property tech in third at $119 million across 16 startups.

Despite overall growth, gender funding gaps persisted. Male-founded startups received nearly 89% of capital in H1 2025. Female-led ventures raised $84.5 million across 27 deals, while mixed-gender teams secured $150 million through 48 transactions.