MENA's startup ecosystem experienced its strongest quarter on record in Q3 2025, with $4.5 billion raised across 180 deals; a remarkable 523% quarter-on-quarter increase. This surge was driven by a record-breaking September, which alone accounted for $3.5 billion across 74 deals, lifting year-to-date funding to $6.6 billion through 514 rounds, already surpassing most annual totals since 2021.​

Comparing quarters, Q3’s $4.5 B far exceeded Q1 and Q2 2025 combined ($2.1 B). Despite the funding surge, the total deal count in Q3 (180) was similar to that in Q1 (185), reflecting a shift from broad deal-making to a few massive rounds.

Investor confidence returned sharply in Q3. After a quiet Q2, the Money20/20 fintech event helped catalyze deals, especially in Dubai and Riyadh. Major global and regional investors (sovereign funds, VC, and PE firms) eagerly participated. LPs are deploying dry powder into late-stage MENA tech, favoring proven models.

By sector, fintech was king, accounting for ~$3 B, proptech and e-commerce trailed at $684 M and $265 M respectively. Other sectors (healthtech, AI, etc.) raised comparatively little. By stage, 180 deals closed in Q3, 134 early-stage (seed/Series A) deals accounted for only ~$538 M, whereas 17 later-stage rounds raised ~$981 M. Meanwhile, large debt deals (e.g., BNPL financing) dominated capital deployment.

Saudi Arabia’s tech sector was the standout: government vision (Vision 2030) and huge public funds have seeded a deep capital pool. UAE remained a strong second, but its share of Q3 funding (~27%) was far below Saudi Arabia’s (~71%). Other MENA markets saw only modest activity: Oman, Morocco, and Egypt each accounted for well under 1%.