Middle East And North Africa Startups Raise $4.5 Billion In Q3

A record September capped a quarter that rebounded sharply after a muted August across the MENA startup ecosystem. Startup investment reached $4.5 billion in the third quarter of 2025, up 523% quarter on quarter. September alone accounted for $3.5 billion across 74 deals - up 914% month on month and 1,105% year on year. Even excluding $2.6 billion in debt financing, equity funding rose 147% from August and 194% year on year, reversing the prior month’s slowdown to $337.5 million. Saudi Arabia drove the surge, with 25 startups raising $2.7 billion. Key contributors included Tamara’s $2.4 billion debt facility, Hala’s $157 million Series B, Lendo’s $50 million debt round, and Erad’s $33 million in debt financing. Deal-making clustered around Money20/20 event, where 15 transactions were announced. UAE followed, with 26 startups securing $704.3 million, while Oman, Morocco, and Egypt raised $7.7 million, $6.8 million, and $3.2 million, respectively. Fintech dominated in September with $2.8 billion across 25 deals, largely from Saudi megadeals. Property tech totalled $528.6 million, almost entirely due to Property Finder’s $525 million round. Artificial intelligence raised $34.3 million across seven transactions, and human resources tech brought in $24.2 million. Early-stage companies were most active by count, with 55 startups raising $129.4 million, while just four later-stage rounds captured $699 million. Business model dynamics shifted as B2B2C ventures led fundraising for the first time, raising $2.4 billion across 15 deals, ahead of B2C companies at $557.3 million and B2B startups at $456.3 million across 36 transactions. Gender disparity persisted: male-founded startups raised $3.3 billion; female-founded ventures secured $1.1 million across four deals; mixed-gender teams attracted the remainder, with women-led startups yet to surpass 5% of total capital raised in 2025. Quarter-wide, Saudi Arabia led with $3.2 billion across 62 deals, followed by the United Arab Emirates with $1.2 billion from 59 deals; Egypt, Iraq, and Morocco rounded out the top five with significantly smaller totals. Fintech remained the top sector in Q3 with $3 billion, followed by property tech with $684 million and e-commerce with $265 million. Of 180 deals, 134 were early-stage, raising $538.3 million; later-stage rounds totalled $981.3 million across 17 deals, and 12 startups opted for debt instruments. Year to date, startups have raised $6.6 billion across 514 rounds, already exceeding annual totals for most years since 2021, despite geopolitical challenges including the Israel-Hamas war.