According to data from MAGNiTT, Saudi Arabia and the UAE dominated the venture capital landscape last year, collectively securing $3.13 billion in investments. Together, these two Gulf nations represented a staggering 91% of all capital deployed within the MENA region. This surge contributed to a regional funding total of $3.8 billion, marking a 74% increase from 2024 across 688 recorded deals.
Saudi Arabia emerged as the regional leader, with its funding skyrocketing by 145% to reach $1.72 billion. The UAE also saw significant growth, with investments rising 84% to a total of $1.41 billion. This record-breaking year was largely propelled by the return of “mega-deals” exceeding $100 million, involving prominent startups like Tamara, Tabby, and Ninja.
The region’s growing appeal was further highlighted by the involvement of major international firms such as Blackstone and General Atlantic, with global investors providing nearly half of the total capital. From a sectoral perspective, Fintech remained the primary focus for investors, though the Artificial Intelligence sector experienced the most explosive growth, tripling its funding compared to the previous year.
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