Month-on-month startup funding in the MENA region increases an astounding 1411%, hitting a monumental $783 million.

MENA Startup Ecosystem Experiences Rapid Growth in July 2025

The Middle East and North Africa (MENA) region's startup ecosystem is experiencing a remarkable surge, with July 2025 alone witnessing a staggering $783 million raised across 57 startups, marking a 1,411% increase month-on-month and more than double the funding from July 2024.

Saudi Arabia and the UAE are leading this ecosystem, accounting for the majority of the funding. Saudi Arabia raised approximately $396.5 million through 16 startups, while the UAE attracted about $359 million across 22 startups.

Deeptech and e-commerce are the sectors experiencing the most significant growth. Deeptech attracted the largest investment of $250.3 million, led by startups working on advanced technologies including AI and smart devices. E-commerce also raised about $250 million, with notable contributions from Saudi-based q-commerce platform Ninja, which secured a $250 million round that propelled it to unicorn status.

SaaS (Software as a Service) secured around $89 million, indicating strong interest in cloud and business software solutions. Fintech, while slightly dropping in total investment compared to other sectors, still attracted $61 million through 11 deals, reflecting continued innovation in mobile banking, cross-border payments, and digital finance.

Other emerging sectors such as logistics, artificial intelligence, foodtech, and energy are also gaining attention and funding, highlighting diversified opportunities in the region.

Notable events in Saudi Arabia included the Kingdom's performance being boosted by three major rounds for Q-commerce platform Ninja, foodtech startup Calo, and SaaS provider Lucidya. Lucidya received a $30 million series B investment, while Calo secured a $39 million series B extension.

Impact46, a Saudi Arabia-based venture capital firm, has invested more than SR25 million ($6.66m) in five gaming studios as part of its SR150 million Gaming Fund. Meanwhile, Coraly.ai is expanding operations to the UAE, Saudi Arabia, France, and the US, and has secured a go-to-market partnership with SNPI.

In Egypt, business-to-consumer startups captured $534 million in funding, but the country dropped to fifth place, recording just $4 million in funding across seven startups. Iraq claimed third place with a single $15 million transaction for InstaBank.

Perle, a UAE-based startup building a decentralized AI training data platform, has closed a $9 million seed funding round led by Framework Ventures. The European Bank for Reconstruction and Development led the investment in Breadfast, with participation from Novastar Ventures.

In summary, the MENA startup ecosystem is robust and expanding rapidly, with Saudi Arabia and the UAE as prominent hubs. Deeptech and e-commerce lead the investment growth, supported by substantial equity funding, strong government backing, and a youthful, tech-savvy population driving demand.

Month-on-month startup funding in the MENA region increases an astounding 1411%, hitting a monumental $783 million.