Saudi Arabia emerged as the most funded startup market in the Middle East and North Africa (MENA) during the first half of 2025, securing US$1.34 billion about 64 percent of the region’s total startup capital — according to data from MAGNiTT and industry reports.
Total funding across MENA reached approximately US$2.1 billion in H1 2025, up 134 percent year-on-year. Saudi startups drove the surge, with key support from sovereign wealth initiatives and local venture firms such as STV, Wa’ed Ventures, and Raed Ventures.
Fintech stood out as the dominant sector in Saudi Arabia, attracting US$969 million across 20 transactions. Other notable sectors included construction technology (US$48 million) and property technology (US$39 million).
The Saudi startup ecosystem saw both mega and early-stage activity. Flagship deals included Ninja’s US$250 million round in e-commerce and Tabby’s US$160 million fintech raise. These mega-deals contributed significantly to total capital deployed in the kingdom. Meanwhile, non-mega activity grew by 67 percent year-on-year, reflecting broad-based investor momentum.
The kingdom also completed 114 VC deals in the period, a national record and representing 56 percent of all venture capital transactions in MENA during H1 2025.
Industry experts attribute the growth to support under Vision 2030, including accelerators like the Fuel Initiative and FundSwift, government-backed funding instruments, and major events such as LEAP and the Digital Transformation Summit.
M&A activity also increased, with seven acquisitions recorded five led by Saudi buyers reflecting growing maturity and consolidation in the ecosystem.
Regional funding outside Saudi Arabia continued to grow. The UAE secured approximately US$541 million, while Egypt raised US$179 million. Fintech led deal flow in both markets, though debt financing played a larger role in Saudi transactions at nearly 44 percent of capital deployed.
As Saudi Arabia positions itself as the leading innovation hub in the region, its startup investment performance in the first half of 2025 sets a record pace and reinforces its ambition to reach US$10 billion in annual VC funding by 2030.
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