Startup funding in the Middle East and North Africa (MENA) showed strong momentum in May 2025, with $289 million raised across 44 deals, up 25% from April and 2% higher year-on-year.
While debt financing made up just 9% of the total this May 2025, equity deals dominated, signaling renewed confidence in the region’s early-stage ventures.
Egypt reclaimed the top spot in regional funding, with a standout $75M round by proptech startup Nawy leading the charge. Seven other Egyptian startups added another $50M, marking the country’s most active month since July 2024.
The UAE came second with $86.7M across 14 deals, and Saudi Arabia followed closely with $69M in 15 rounds. Kuwait, typically quiet on the VC scene, returned to the map with $6M raised by two startups.
May 2025 Report: Fintech King, AI Underwhelms, Gender Gap Remains
Despite growing hype around artificial intelligence, especially following a high-profile visit by U.S. President Trump and Silicon Valley AI executives, actual investment in GCC AI startups fell short, landing just $25M across two deals.
Meanwhile, fintech remained the region’s most bankable sector, pulling in $86.5M across 14 rounds. Thanks to Nawy, proptech ranked second, and mediatech startups raised $32M, with WakeCap’s $28M boost putting contech in the spotlight too.
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As shown in the May 2025 report, the month skewed heavily toward early-stage funding, with only one pre-Series C round ($12M) recorded. Early-stage rounds contributed a dominant $161M of the total funding.
B2B startups led the pack, attracting $157M over 29 deals, followed by hybrid B2B/B2C models ($79M). Pure B2C companies lagged, raising just $53M across nine rounds.
The gender funding gap in this May 2025 report also persisted:
- Male-founded startups took home 82% of capital
- Female-led ventures raised just 7%
- Mixed-gender teams captured the remaining 11%
Despite sectoral strength and country-level standouts, the region still faces challenges in late-stage funding maturity and gender equity, leaving plenty of room for growth as MENA’s startup landscape continues to evolve.
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