MENA Startup Funding Falls 82% in June to $52 Million

Funding for startups in the Middle East and North Africa dropped sharply in June 2025, with total investment falling to $52 million - a steep 82% decline compared to May’s $289 million peak and a 55% drop compared to June 2024, according to a report by Wamda. This downturn reflects ongoing volatility in the regional venture capital scene, driven by shifting economic conditions and investor sentiment.

Fintech emerged as the dominant sector last month, capturing approximately 74% of all capital despite the overall decline. B2B startups also attracted significant investment, accounting for 78% of the total, signalling investor preference for more predictable, revenue-generating models.

Another notable shift is the increasing use of debt instruments, which made up 40% of total funding - indicating growing investor caution.

On a country level, the UAE reclaimed its lead in startup investment, securing $37 million (70% of June’s total) across 13 deals. Egypt followed in second place with $6.2 million from six investments. Tunisia also made the top three, largely thanks to a $3.5 million seed round for water-generation startup Kumulus. Meanwhile, Saudi Arabia raised just $3 million across six deals.

The sharp funding drop may reflect summer slowdowns, valuation resets, and narrower global liquidity flows. Observers warn that, as the MENA ecosystem matures, adaptability, financial discipline, and sectoral diversification will be key to withstanding such fluctuations.