Startups in Saudi Arabia and the UAE have dominated the venture capital (VC) landscape in 2025, securing a combined total of $3.13 billion in funding. According to data from MAGNiTT, these two Gulf Cooperation Council (GCC) nations account for a staggering 91% of the total VC capital deployed across the Middle East and North Africa (MENA) region, which reached $3.8 billion—a remarkable 74% increase from 2024.
The record growth in VC activity in 2025 is a clear sign of the strengthening entrepreneurial ecosystem in the region. Saudi Arabia led the way with $1.72 billion raised, a 145% increase from the previous year, while the UAE followed closely with $1.41 billion, up by 84%. The funding was spread across 688 deals, marking a 6% increase in the number of transactions compared to the previous year.
This surge in VC investment was fueled by the resurgence of mega-deals—investments of over $100 million. Notable startups like Tamara, Tabby, and Ninja were among the beneficiaries of these large-scale investments. International venture capital firms, including Blackstone and General Atlantic, also played a significant role in the funding boom, contributing nearly half (48%) of the total capital.
The largest portion of VC funding went to the Fintech sector, which raised $1.15 billion, reflecting a 32% year-on-year increase. The artificial intelligence (AI) sector also saw a tremendous jump, with investments in AI startups tripling to $820 million.
This record funding is a reflection of the growing importance of Saudi Arabia and the UAE as regional hubs for innovation and entrepreneurship. As these nations continue to foster high-potential startups, particularly in technology sectors like Fintech and AI, their influence on the MENA VC landscape is set to grow even further.
