July 2025 marked a historic month for the MENA startup ecosystem. Startups in the Middle East and North Africa raised a staggering $783 million across 57 deals, representing a phenomenal 1,411% increase compared to June, and more than double the amount raised in July 2024.
Saudi Arabia and UAE: The Power Duo
At the heart of this surge were two mega-deals that together accounted for 56% of all funding raised in July.
- Saudi Arabia led the charge, securing $396.5 million across 16 deals. Among the marquee raises, q-commerce platform Ninja raised $250 million, earning it unicorn status, while foodtech Calo and SaaS provider Lucidya raised $39 million and $30 million, respectively.
- The UAE followed closely, with startups attracting $359 million across 22 deals. The standout was deeptech unicorn XPANCEO, which raised $250 million.
Emerging Hubs: Iraq and Morocco Shake Up Rankings
The funding dynamics extended beyond the traditional UAE–Saudi axis:
| Rank | Country | Funding Raised | Highlights |
|---|---|---|---|
| 3 | Iraq | $15 million | InstaBank’s $15M raise |
| 4 | Morocco | $7.5 million | Ora Technologies’ $7.5M round |
| 5 | Egypt | $4 million | Across 7 startups — steep decline |
Egypt, previously a consistent top-three powerhouse, slid to fifth due to macroeconomic pressures and currency volatility.
Sector Trends: Deeptech and E-Commerce Take the Lead
The July funding trends point to a clear shift in investor priorities:
- Deeptech captured $250.3 million through four deals.
- E-commerce matched that number, largely thanks to Ninja’s blockbuster round.
- SaaS secured $89 million across 12 deals.
- Fintech, a former darling, fell to fourth with $61 million raised across 11 rounds.
This suggests a growing preference for innovation-heavy and consumer-oriented business models over traditional fintech plays.
Deal Flow Breakdown: Late-Stage & Early-Stage Activity
Funding was heavily skewed toward larger rounds:
- Series A deals accounted for $267 million (3 startups).
- Later-stage rounds delivered $158 million.
- Early-stage startups raised $36 million across 26 deals.
- Debt financing made up just 2% of July’s funding—solidifying equity’s dominance in the region.
What This Means: MENA Surpasses 2024 Total Early
By July, the region had already surpassed the full-year funding total of 2024, a strong signal that MENA’s startup ecosystem is entering a phase of accelerated maturity and diversification.
Large-scale deals, vibrant early-stage activity, and rising investor confidence(particularly in Saudi Arabia and the UAE) are transforming the region into a growth hotspot. Moreover, surprise entries from Iraq and Morocco highlight widening investor interest beyond traditional markets. Yet, the funding remains concentrated and gender disparity endures, challenges that need to be addressed as ecosystem development continues.
