Startup funding in the Middle East and North Africa dropped to $337.5 million in August, spread across 47 deals, according to a report by Wamda and Digital Digest. That marks a 57% decline from July’s record $783 million, though the total remains 74% higher than in August 2024.
Saudi Arabia led funding, with 19 deals totalling $166 million, followed by the UAE’s 11 rounds bringing in $154 million. Egypt continued to lag regional peers, raising just $14.7 million across eight deals. Morocco stayed in the top four, while Iraq slipped back following its brief third-place showing in July, with only one deal worth $1.5 million.
Proptech led sector funding, raising $96 million from four deals. Fintech rebounded to secure $68.3 million across five transactions. Contech was buoyed by MYCRANE’s $50 million raise. Notably, the gaming sector and Saudi investors poured $12.6 million into gametech ventures.
Later-stage deals dominated. Series B rounds brought in $112 million from three deals, while Series A raised $82 million across another three. Debt financing accounted for $60 million, or 18% of the total, while early-stage startups, 31 in number, raised just $22 million.
B2B models attracted more capital than B2C, with $180 million raised across 32 B2B startups. B2C ventures secured $116.9 million in nine deals, with the remainder going to hybrid models.
Male-led startups once again received the lion’s share of investment, $263.5 million across 41 deals. However, female-led ventures saw a rare spike, raising $72.3 million in two deals (Gathern and Phys, both in Saudi Arabia). Mixed-gender founding teams brought in $1.6 million.
Broader context
While August shows a clear slowdown, the broader regional trend remains solid. As of H1 2025, MENA had secured $2.1 billion in funding across 334 deals, a 134% increase year-over-year, with debt financing playing a growing role.
MAGNiTT data confirms that H1 2025 was the strongest first half since 2022, with $1.5 billion raised through 310 deals, a 92% increase compared to 2024. Saudi Arabia and the UAE accounted for 85% of both capital and deal volume, and fintech funding alone tripled to $596 million.
