Middle East deal activity defies odds, outwits Southeast Asia 

The Middle East has emerged a hotspot for deal activity in 2025, surpassing Southeast Asia for the first time, and becoming the only emerging venture market to record an annual rise in deal count. 

The Middle East recorded a record 581 deals, up 13% annually, while narrowing the funding gap, with an all-time high of $3.4 billion, up 89% year-on-year. The performance was underpinned by stronger diplomacy ties, major events, and rising investor confidence according to data analytics firm Magnitt. 

The region saw a record $1 billion in deals worth $100 million or more, supported by the return of late-stage liquidity, diplomatic ties, key events, and rising investor confidence.

The GCC region stood out as a powerhouse, positioning itself as a destination of long-term capital, with five deals worth $100 million or more. Saudi Arabia was the most active country by funding, recording 257 deals worth $1.7 billion, with the UAE following at $1.58 billion up 67% year-on-year.   

“Throughout 2025, the region saw international investors from North America, Europe, and Asia continue to deepen their presence in the region across private capital, said Philip Bahoshy, CEO of Magnitt, in its latest report. 

“They were drawn by policy consistency, economic ambition and sustained investment in infrastructure. Global financial institutions and asset managers including Ray Dalio, Brevan Howard, KKR and Brookfield expanded their local footprint."

"Additionally, 9,800 millionaires were set to relocate to Dubai in 2025; 600 multinational companies have regional headquarters in Saudi Arabia and Dubai has passed a milestone of being home to over 100 global hedge funds,” Bahoshy added. 

M&A activity rose 41% year on year across the MENA region, while AI become an active investment theme, with related company funding increasing 204% annually to $817 million. 

Despite an 11% year-on-year decline, Singapore remained the most funded emerging venture market, with $3.08 billion. The Southeast Asia region experienced a 29% year-on-year decline in funding and deal count, with M&A activity falling to 24 deals from 35, its lowest level in seven years.