Two GCC markets account for 91% of total funding deployed across MENA.
Startups in Saudi Arabia and the UAE led venture capital funding activity last year, attracting a total of $3.13 billion worth of investments, according to data platform MAGNiTT.
The two Gulf states together account for the bulk, or 91%, of all the capital deployed across the Middle East and North Africa (MENA) region, which recorded a total of $3.8 billion, up by 74% from 2024.
The funding was spread across 688 deals, an increase of 6% from the previous year. Overall, Saudi Arabia topped the table with the highest funding valued at $1.72 billion, rising by 145% from 12 months prior, while the UAE received $1.41 billion, rising by 84% over the same period.
The record growth in VC funding was driven by the resurgence of mega-deals (those over $100 million) such as those for startups Tamara, Tabby and Ninja. The region’s VC market also drew interest from international investors – including Blackstone and General Atlantic – contributing nearly half (48%) of the total capital.
Startups in the Fintech sector drew the most funding, totaling $1.15 billion, up by 32% from last year, followed by artificial intelligence, which drew $0.82 billion, tripling from a year earlier.
The composition of international reserves is in a constant state of flux. This column identifies…
There are concerns that the widespread adoption of central bank digital currencies could drain bank…
Innovation is widely viewed as the engine of economic growth, but we know surprisingly little…
Land-use regulations, including height limits, affect housing affordability and urban productivity. This column analyses over…
Most debate about AI and jobs still starts with the automation frontier: how many tasks…
The 2024 reform of the EU's Stability and Growth Pact introduced medium-term expenditure paths as…