UAE Startups Raise $541 Million in H1 2025

The UAE’s startup ecosystem recorded $541 million in funding during H1 2025, according to a joint report by Wamda and Digital Digest. This figure represents an 18% rise from the same period in 2024, with fintech accounting for nearly half the total at $265.8 million across 35 deals. Insurtech followed with $55 million, while AI and Web3 each raised $44.7 million.

The country maintained a strong equity-led funding mix, with debt financing representing just 19% of deal volume, significantly lower than regional averages. UAE startups also secured the largest share of investor activity among female-led teams, with women-led ventures attracting $17.6 million and mixed-gender founding teams raising $91.7 million.

The first half of the year also saw a broader surge across the MENA region, where total startup funding climbed to $2.1 billion across 334 deals - up 134% year-on-year. Saudi Arabia led the region with $1.34 billion raised, followed by the UAE and Egypt, which saw a 106% increase in funding compared to H1 2024.

The fintech sector continues to dominate MENA’s investment landscape, accounting for 62% of capital raised regionally. Across the board, B2B startups attracted the bulk of funding, while investors increasingly turned to debt financing to manage risk amid global economic uncertainty.

Despite the uptick in capital, gender gaps in funding persist. Startups founded exclusively by men captured the majority of investment, while female-led ventures still represent a small fraction of total capital raised. The report underscores a growing need for targeted support to foster diversity and inclusion in the region’s entrepreneurial ecosystem.