World

Saudi, UAE startups led VC deals, raised $3.13bln in 2025

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.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

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