Saudi Arabia startup funding leads the MENA region with the highest investment in the latest month. The Kingdom secured $158.5 million through eight deals, outperforming all neighboring markets.
Firstly, Saudi Arabia startup funding was driven by a major $135 million pre-IPO deal from iMENA Group. As a result, this single transaction gave the Kingdom a dominant lead over other countries. Meanwhile, the UAE followed with $62 million raised across nine startups.
Across the region, MENA startups completed 26 funding deals totaling $228.4 million. This marked a 105% increase from the previous month. Compared to last year, this was nearly three times the funding amount, highlighting a growing appetite for investment.
Interestingly, Saudi Arabia startup funding showed strong investor confidence in equity-based support. No deals involved debt, reflecting a shift toward healthier, long-term capital strategies. Consequently, investors appear more willing to back growth-focused companies without relying on credit.
Moreover, Morocco secured $4 million from two startups, ranking third. In contrast, Egypt attracted only $1.5 million across four startups. These numbers illustrate the funding gap between Saudi Arabia and other regional players.
In terms of stage, early-stage ventures led deal volume. They brought in $49 million through 20 transactions. On the other hand, late-stage activity was dominated by the iMENA pre-IPO round, further reinforcing Saudi Arabia startup funding strength.
Among sectors, fintech came out on top with $44 million across seven deals. Additionally, traveltech gained traction through the HRA Experience deal. E-commerce firms added $2.5 million from three deals, showing growing diversification.
Furthermore, software-as-a-service startups bounced back after a slow start. They raised $1.8 million across three deals. This comeback, while modest, signals increased investor attention toward SaaS ventures in Saudi Arabia’s startup funding scene.
By business model, B2B startups led the way, securing $180 million from 12 deals. Meanwhile, B2C companies raised $43 million across seven deals. Hybrid B2B-B2C models contributed the remaining share.
However, a gender funding gap remained visible. Female-led startups in the MENA region raised under $500,000. In contrast, male-led ventures captured 97% of capital. Startups co-founded by both men and women raised $6.5 million.
Overall, Saudi Arabia startup funding continues to outperform its neighbors. With strong backing, the Kingdom remains a central hub for regional investment. As more sectors gain traction, Saudi Arabia’s leadership in startup financing looks set to continue.
