MENA AI startups garner record funding in H1 

Artificial intelligence startups in the Middle East and North Africa (MENA) garnered record venture capital (VC) funding in the first six months of the year, illustrating how the technology has emerged as a prominent investment theme across the region.  

Regional AI startups netted $302 million in H1, making up 17% of the region's total VC  funding of $1.78 billion, according to data analytics platform Magnitt. 

It also recorded promising growth in deal count, garnering 26% of the region's VC deal flow, up from 23% in 2024.

The MENA region reported its best half-year results for AI funding, surpassing last year’s total funding by 16%.

“Artificial Intelligence has become MENA’s defining venture theme in 2025,” the Magnitt report read. 

The UAE and Saudi Arabia emerged as the destinations of choice, absorbing more than 70% of AI funding in the region. The ongoing momentum of the two countries to become AI-native sovereigns, is shored up by state-backed programs and large-scale tech events.  

Momentum is shifting from early pilots to scaled deployment, the Magnitt research suggested, with more mid-stage transactions and sovereign-backed initiatives driving commercialization. 

Saudi sovereign wealth fund launched Humain earlier this year, to build entire AI stacks as well as manage advanced AI technologies and infrastructure.