**Middle East and North Africa**: The MENA region saw startup funding jump 300% year-on-year to $228.4 million in April 2025, driven primarily by a $135 million pre-IPO round in Saudi Arabia and high investor appetite for fintech and B2B ventures amidst a sharp sector recovery.
MENA’s Startup Ecosystem Experiences Remarkable Growth Amidst Shifting Investor Trends
In April 2025, the Middle East and North Africa (MENA) startup ecosystem witnessed a significant upswing in funding, drawing in a total of $228.4 million across 26 transactions. This remarkable figure represents a 105 percent increase compared to the previous month and a staggering 300 percent spike year-on-year, according to a report by Wamda. This reversal in fortunes comes on the heels of a challenging 2024, where the sector saw a decline in investments, highlighting an emerging trend of renewed investor confidence in equity-based funding.
Leading the charge was Saudi Arabia, which secured an impressive $158.5 million across eight deals, largely facilitated by iMENA Group’s notable $135 million pre-IPO round. This single transaction notably underscores the growing interest in equity as a financing method, with the absence of debt-financed deals in April reflecting a shift towards a healthier and more promising investment climate for startups.
Following Saudi Arabia, the United Arab Emirates (UAE) accounted for nine startups that collectively raised $62 million, marking the highest number of deals in the region. The recent resurgence in funding activity in both nations contrasts sharply with 2024, where the MENA startup ecosystem generated $2.3 billion but suffered a concerning 42 percent decline from the previous year. This decline was primarily attributed to a pullback in investments across various sectors, but the underlying dynamics have shifted substantially in just a few months.
Morocco also made an impressive leap in this latest funding round, capturing third place with $4 million across two startups. In contrast, Egypt’s performance remained modest, as four startups managed to secure only $1.5 million. Iraq re-entered the funding landscape with a $1 million deal after its absence in the previous month, while Bahrain and Oman also reported minimal gains with $1 million and $100,000, respectively.
The fintech sector garnered the lion’s share of investment, attracting $44 million from seven deals, which signifies sustained interest in the digital finance space. This aligns with the broader regional trends observed earlier in 2025 when fintech had emerged as a significant contributor to the overall funding landscape, drawing attention from venture capitalists and angel investors alike. Traveltech began to see traction as well, buoyed by significant transactions such as HRA Experience. Additionally, the e-commerce sector attracted $2.5 million across three startups, thereby diversifying the funding environment.
Interestingly, while early-stage MENA startups dominated the investment scene – raising $49 million from 20 transactions – funding for female-led startups fell alarmingly low, dipping below the $500,000 mark. This figures starkly contrasts with the overwhelming investment that male-founded startups received, which accounted for 97 percent of all disclosed investments. The challenge of securing venture capital for female entrepreneurs continues to negatively impact the diversity and inclusivity of the ecosystem.
Further illustrating the evolving investment landscape, the business-to-business (B2B) segment emerged as the frontrunner in attracting funding, successfully raising an impressive $180 million across 12 deals. This was complemented by the $43 million drawn by business-to-consumer (B2C) startups, highlighting an ongoing preference among investors for B2B models which generally promise steadier returns and lower risk in comparison to their B2C counterparts.
As the MENA region continues to rebound from the setbacks of 2024, the investment activities of April 2025 indicate a strong pivot toward a flourishing startup ecosystem. The numbers illustrate not only a resurgence in investor interest but also a possible evolving strategy among entrepreneurs and investors alike as they adapt to a rapidly changing economic landscape. The months ahead will be critical in determining whether this upward trajectory can be sustained, and whether the ecosystem can deliver on the promise of fostering innovative solutions to meet the demands of a diversifying consumer base.
Reference Map:
- Paragraph 1 – [[1]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[2]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/)
- Paragraph 2 – [[1]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[3]](https://www.financemiddleeast.com/trends-and-outlook/mena-startup-funding-drops-42-in-2024-uae-reclaims-top-spot-as-saudi-investment-slows/)
- Paragraph 3 – [[1]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[2]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/)
- Paragraph 4 – [[1]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/)
- Paragraph 5 – [[1]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[6]](https://economymiddleeast.com/news/mena-startups-raise-2-3-billion-2024-uae-leads/)
- Paragraph 6 – [[2]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[3]](https://www.financemiddleeast.com/trends-and-outlook/mena-startup-funding-drops-42-in-2024-uae-reclaims-top-spot-as-saudi-investment-slows/)
- Paragraph 7 – [[2]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[4]](https://tribetechie.com/mena-startups-raise-494m-in-february-2025/)
- Paragraph 8 – [[1]](https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/), [[3]](https://www.financemiddleeast.com/trends-and-outlook/mena-startup-funding-drops-42-in-2024-uae-reclaims-top-spot-as-saudi-investment-slows/)
Source: Noah Wire Services
- https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/ – Please view link – unable to able to access data
- https://economymiddleeast.com/news/mena-startup-funding-grows-300-percent-228-4-million-april-2025/ – In April 2025, the MENA startup ecosystem experienced a significant surge in funding, securing $228.4 million across 26 deals. This represents a 105% monthly increase and nearly a 300% annual rise. Saudi Arabia led the region with $158.5 million raised across eight deals, primarily due to iMENA Group’s $135 million pre-IPO round. The UAE followed with nine startups raising a total of $62 million, leading in deal activity. Morocco secured $4 million across two startups, while Egypt raised $1.5 million across four startups. The fintech sector attracted the most investment, with $44 million across seven deals. Early-stage startups dominated, raising $49 million across 20 transactions. Notably, funding for female-led startups declined to under $500,000, with male-founded startups securing 97% of disclosed investments. The B2B segment led in funding, attracting $180 million across 12 deals, while B2C startups secured $43 million across seven deals.
- https://www.financemiddleeast.com/trends-and-outlook/mena-startup-funding-drops-42-in-2024-uae-reclaims-top-spot-as-saudi-investment-slows/ – In 2024, the MENA startup ecosystem recorded $2.3 billion in investments, marking a 42% decline year-on-year. Excluding debt financing, the decline narrows to 11%. Despite the downturn, the UAE led with $1.1 billion raised across 207 deals, followed by Saudi Arabia with $700 million across 186 transactions, and Egypt with $334 million from 84 deals. The fintech sector dominated, accounting for 30% of total funding, with $700 million spread across 119 deals. SaaS ranked second in deal volume, attracting $228.6 million across 65 transactions. The GCC region maintained its status as the most well-funded, with Oman making a significant leap from 10th place in 2023 to 4th in 2024, securing $41.5 million across 12 deals. Bahrain attracted $29 million in investment through 12 transactions, while Kuwait received $22 million from eight deals.
- https://tribetechie.com/mena-startups-raise-494m-in-february-2025/ – In February 2025, the MENA startup ecosystem witnessed a substantial surge, with startups securing $494 million across 58 deals, marking a 371% month-on-month growth when excluding debt financing. This funding surge represents a nearly fivefold increase compared to February 2024. Saudi Arabian startups dominated fundraising, securing $250.3 million across 25 deals, significantly influenced by the LEAP 2025 conference. The UAE followed with $203.5 million raised by 15 startups, while Egypt ranked third with $27.5 million across eight deals. The fintech sector emerged as the top recipient of investments, raising $274 million through 15 deals. Insurtech followed with $55 million across two deals, while logistics startups secured $28.5 million across four deals. Investor attention shifted towards later-stage startups, with Tabby raising $160 million in Series E funding. Despite the focus on later-stage funding, early-stage investments remained strong, with pre-seed startups collectively raising $22 million across 15 deals.
- https://bitcoinke.io/2025/03/mena-in-february-2025/ – In February 2025, the MENA startup ecosystem experienced a surge in investment, with startups raising $494 million across 58 deals. This represents a nearly fivefold increase compared to the same period in 2024, highlighting growing investor confidence in the region. The nature of funding shifted significantly, with debt financing dropping from 90% in January to just 15% in February, signaling a move towards more equity-based funding. Saudi Arabian startups led fundraising, securing $250.3 million across 25 deals, influenced by the LEAP 2025 conference. The UAE followed with 15 startups collectively raising $203.5 million, while Egypt secured $27.5 million across eight deals. The fintech sector dominated, securing $274 million across 15 deals, followed by insurtech with $55 million in two deals, and logistics with $28.5 million across four deals. The Web3 sector saw two startups raising a combined $5 million, a significant increase from January’s $100K.
- https://economymiddleeast.com/news/mena-startups-raise-2-3-billion-2024-uae-leads/ – In 2024, the MENA startup ecosystem showed resilience despite a notable decline in funding, recording $2.3 billion in investments, a 42% annual decline. Excluding debt financing, the decline is just 11%. The UAE led the region with $1.1 billion raised across 207 startups, followed by Saudi Arabia with $700 million in 186 deals, and Egypt with $334 million in 84 deals. The total number of deals grew by 3.5%, reaching 610, signaling sustained investor interest. The GCC nations dominated funding, with Oman making the most significant leap, climbing from 10th place in 2023 to 4th in 2024 with $41.5 million secured across 12 startups. Bahrain followed with $29 million in 12 deals, while Kuwait’s startup scene attracted $22 million across eight companies. In North Africa, Morocco and Tunisia raised $20.8 million and $13.1 million, respectively.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
9
Notes:
The information is very current, referencing funding activities in April 2025, indicating a high level of freshness. The narrative also contrasts with previous years, showing awareness of recent trends.
Quotes check
Score:
10
Notes:
There are no direct quotes in the narrative, which means there is no risk of misappropriation or inaccuracies from reused quotes.
Source reliability
Score:
6
Notes:
The narrative originates from ‘Economy Middle East’, which is not as widely recognized as major news outlets like BBC or Reuters. However, the data provided seems structured and aligned with industry trends.
Plausability check
Score:
8
Notes:
The claims about significant increases in startup funding align with broader economic trends and are plausible given the sector’s dynamics. The figures and sectors involved appear consistent with typical investment patterns.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent and plausible data regarding the MENA startup ecosystem’s growth. Although it lacks quotes and originates from a less well-known source, the information seems reliable based on contemporary trends. The high freshness score supports its credibility.
