Technology startups in the United Arab Emirates raised a total of US $1.0 billion during the first half of 2025, marking a 133 percent increase over the US $438 million raised in the second half of 2024.
The surge was driven by a rebound in late-stage funding, which surged to US $817 million, an increase of 583 percent compared to the latter half of 2024. In contrast, seed-stage funding declined sharply to US $32.7 million, down 74 percent from the previous period, while early-stage investment reached US $167 million, falling 13 percent from H2 2024 despite a modest 4 percent gain year-on-year.
Enterprise applications led the way with US $728 million in funding, followed by fintech at US $286 million and retail tech at US $172 million. These sectors together accounted for the majority of investor activity and capital committed in the period.
Investors completed two major funding rounds exceeding US $100 million: Vista Global secured US $600 million in a private equity round, and Tabby closed a US $160 million Series E. Such mega-rounds contributed significantly to the overall funding total.
Dubai-based startups accounted for approximately 93 percent of the funds raised, with firms in Abu Dhabi making up the remaining share. During this period, nine acquisitions were recorded, including notable deals involving fintech and enterprise tech companies.
Despite the growth in funding, no new unicorns emerged during the period, continuing a trend from both halves of 2024. Analysts attribute the funding pattern to investor caution, with a growing preference for more mature startups with proven business models.
Industry insiders note that the UAE’s funding performance positions it ahead of mature ecosystems such as Japan and Sweden. The rebound aligns with national development strategies aimed at establishing the UAE as a global innovation hub, particularly in fintech, enterprise software, and retail technology.
Despite the strong first half, total funding remains below the US $1.8 billion raised during the first half of 2024. Observers expect the remainder of 2025 to be critical in determining whether recovery in early-stage financing and diversification into emerging sectors like clean tech, AI, and mobility can sustain the momentum.
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