MENA Startup Funding Explodes to $783 Million in July 2025, Setting New Records
The third quarter of 2025 kicked off with an unprecedented wave of startup investment across the Middle East and North Africa (MENA) region. July witnessed an astonishing surge in capital flow, with 57 innovative startups collectively raising a colossal $783 million. This marks a truly remarkable 1,411% month-on-month jump and more than doubles the total funding secured in July of the previous year. The dramatic increase in MENA startup funding was largely propelled by the successful closing of two significant mega deals, which reshaped the month’s investment landscape. This performance underscores the growing confidence of investors in the region’s burgeoning tech ecosystem.
Regional Powerhouses and Emerging Players in MENA Tech Investment
Saudi Arabia solidified its position as the undisputed leader in regional startup funding for July 2025. The Kingdom attracted a dominant $396.5 million from 16 distinct deals, highlighting its pivotal role in driving venture capital activity. Close behind, the United Arab Emirates (UAE) showcased its enduring appeal to both regional and global investors, successfully drawing $359 million across a higher volume of 22 startups. This robust performance from both economic powerhouses underscores the concentrated nature of large-scale investment.
Beyond the top two, the month also brought a significant reordering of the funding hierarchy. Iraq emerged as a notable contender, climbing to third place with a substantial $15 million deal for InstaBank, effectively displacing Egypt from its long-held spot among the top four. Furthermore, Morocco secured the fourth position, benefiting from Ora Technologies’ $7.5 million funding round, demonstrating a growing footprint for North African tech. In contrast, Egypt, a consistent fixture in the top three in previous periods, slipped to fifth place, with its startups raising a more modest $4 million across seven deals. These shifts highlight the dynamic and evolving nature of the MENA tech investment landscape.
July 2025’s extraordinary funding figures signal a vibrant and highly competitive startup ecosystem across the MENA region. This strong start to the third quarter, driven by significant capital injections and a redistribution of national funding prominence, reinforces the region’s potential for sustained growth and innovation. The continued interest from investors, alongside the rise of new hubs and sectors, positions the MENA region as a key player in the global technology and investment arena.
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