MENA VC Funding Record $3 Billion in First 9M of 2025

Showcasing positive signs of recovery after a protracted two years of market correction, MAGNiTT, the leading data platform for venture capital across Emerging Venture Markets (EVMs), has released its 9M 2025 MENA Venture Investment Report.

By the end of September, MENA recorded $3 billion in venture funding, up 109% y-o-y, across 469 deals (+3% y-o-y), surpassing Southeast Asia ($2.5 billion) for the first time. This marked the region’s strongest nine-month performance ever, underpinned by an increase in MEGA deals and growing momentum at Series A and Series B.

MAGNiTT CEO Philip Bahoshy said that the first nine months of 2025 marked the recovery of the MENA venture capital ecosystem. Not only did the region cross $3 billion in funding by September, but it also outperformed Southeast Asia for the first time for the first 9 months of the year.

“The strength of Series A and B pipelines, combined with sovereign-backed support and global investor interest, reinforces MENA’s position as one of the fastest-maturing ecosystems in emerging markets,” he added.

Q3 VC Funding

Q3 2025 was MENA’s highest-ever quarter for VC funding, crossing $1.2 billion, up 121% y-o-y. This was higher than Q1’s $868 million and Q2’s $912 million. The mega deals accounted for more than half of total funding, with standout rounds including the UAE’s XPANCEO ($250 million) and Airalo ($220 million), and Saudi Arabia’s Hala ($157 million).

Importantly, Q3 2025 marked the fifth consecutive quarter with mega activity, underscoring renewed investor appetite for scaling companies.

Series A and B funding saw growth, with Series A up 75% y-o-y and Series B up more than 10x y-o-y, thus reflecting a deepening pipeline of scale-ready ventures attracting larger institutional checks.

Saudi and UAE Lead in VC Funding

Saudi Arabia emerged as MENA’s most active market by deal count, recording 173 transactions (+38% y-o-y), seeing more activity than any other MENA market for the first time. Initiatives led by government-backed entities such as SVC, Jada, and NTDP have expanded both early- and late-stage activity, creating a more robust pipeline.

Meanwhile, the UAE saw the highest funding value at $1.4 billion (+188% y-o-y), supported by three mega rounds, which contributed 46% of the country’s total funding. Together, the UAE and Saudi Arabia accounted for over 90% of the MENA region’s total funding.

Fintech’s Dominance

For the fifth consecutive year, FinTech had the most funding, raising $965 million (+97% y-o-y) and accounting for more than a quarter of all MENA deals. Landmark raises by Tabby ($160 million) and Hala ($157 million) drove this, supported by regulatory tailwinds such as open banking frameworks, digital payment licenses, and events including Money 2020, Seamless Fintech Middle East, and Dubai FinTech Summit.

M&A Activity Doubles

The MENA region saw 40 mergers & acquisition deals in the first nine months of 2025, double the number recorded in the same period last year. Egypt stood out with 13 exits, while the UAE had the most with 15, the MAGNiTT report said.

“Liquidity remains a key challenge for MENA Venture Capital. In a positive for the region, exits are becoming more frequent and diversified across geographies and sectors. This signals a healthier, more liquid ecosystem where investors can realize returns and recycle capital into new opportunities,” Bahoshy added.

As MENA’s start-up ecosystem matures, the first nine months of 2025 stand as a defining period, one where the region appears to be recovering from a funding slump from the last two years. This sets up for what could be a strong FY 2025 funding performance.

With continued public–private collaboration, regulatory evolution, and institutional capital flowing into emerging markets, the outlook for the rest of 2025 is one of sustained momentum and measured optimism, the report said.