MENA startup funding surges to $4.5bn in Q3 on Saudi fintech boom

Startup funding in the Middle East and North Africa (MENA) region surged to $4.5 billion in the third quarter of 2025, marking a 523% increase from the previous quarter, according to new data from Wamda and Digital Diges.

The sharp rise was driven by a record-breaking September, which accounted for $3.5 billion across 74 deals, up 914% month-on-month. Even excluding $2.6 billion in debt financing, equity funding saw one of the strongest performances in the region’s history, rising 147% from August and 194% year-on-year.

Saudi Arabia leads regional surge

Saudi Arabia was the main growth driver, with 25 startups raising a combined $2.7 billion. Major deals included Tamara’s $2.4 billion debt facility, Hala’s $157 million Series B, Lendo’s $50 million debt round, and erad’s $33 million raise. Much of the activity coincided with Money20/20 Middle East, the region’s largest fintech event, which saw 15 deals announced.

The UAE followed with $704.3 million raised by 26 startups, highlighting continued investor interest in Dubai and Abu Dhabi’s tech ecosystems. Oman ranked third with $7.7 million, while Morocco and Egypt secured $6.8 million and $3.2 million, respectively. Egypt’s performance remained muted amid ongoing currency instability and inflationary pressures.

Fintech and proptech dominate

The fintech sector accounted for $2.8 billion across 25 deals, largely driven by Saudi megadeals. Property tech followed with $528.6 million, nearly all from Property Finder’s $525 million round. AI startups raised $34.3 million, while HR tech attracted $24.2 million.

Early-stage startups dominated in number, with 55 firms raising $129.4 million, though later-stage ventures captured the bulk of capital—$699 million across four rounds—indicating investor preference for scalable, proven business models.

Shifts in business models and gender gap

Hybrid B2B2C startups led fundraising for the first time, securing $2.4 billion across 15 deals, outpacing pure B2C firms ($557.3 million) and B2B ventures ($456.3 million). Analysts said this reflects a growing appetite for flexible models that serve both consumers and enterprises.

However, female-led startups continued to face funding disparities, attracting only $1.1 million across four deals, while male-founded ventures raised $3.3 billion. Mixed-gender teams secured the remainder. Women-led firms have yet to surpass 5% of total capital raised in 2025.

Year-to-date and sector overview

So far this year, MENA startups have raised $6.6 billion through 514 rounds, already surpassing most annual totals since 2021. Saudi Arabia led Q3 funding with $3.2 billion from 62 deals, followed by the UAE with $1.2 billion across 59 deals.

Despite geopolitical tensions, including the Israel-Hamas conflict, analysts said 2025 has been a transformative year for the region’s venture landscape.