MENA's Startup Funding Plummets 76% in March 2025 Amidst Global Trade Tensions
The Middle East and North Africa (MENA) region's startup funding landscape saw significant shifts in March 2025. The United Arab Emirates (UAE) led the region with $104.4 million raised, while Egypt and Saudi Arabia followed. However, overall investment dropped sharply due to global trade tensions.
The UAE's startup ecosystem shone in March, with $104.4 million secured across 14 deals. Egypt came second with $11.6 million from four deals, and Saudi Arabia raised $8 million through five deals. Fintech dominated funding, attracting $82.5 million across 10 deals. Meanwhile, AI secured $14 million through four startups, and healthtech came in second with $16 million invested across two deals.
In stark contrast, total funding in the MENA region plummeted by 76% to $127.5 million across 28 deals. Early-stage startups attracted $58 million, or 70% of the total investment, while later-stage startups raised $46 million, making up 36%. Publicly available information reveals no notable companies in the MENA region raised more than $1 billion in the first quarter of 2025.
The decline in MENA's startup funding is attributed to the U.S trade war against global trade partners, impacting key countries in the region. Despite the UAE's strong performance, overall investment dropped significantly, highlighting the need for regional resilience in the face of global economic challenges.
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