Prime Highlight
- Saudi Arabia emerged as the region’s most active venture capital market in 2025, driving a 145% year-on-year funding increase and recording 257 deals.
- The Middle East venture ecosystem rebounded strongly, supported by investor confidence, late-stage liquidity, and growing policy and foreign investor support.
Key Facts
- Overall Middle East venture funding reached $3.43bn across 581 deals, while the wider MENA region recorded $3.8bn in 688 deals, marking significant year-on-year growth.
- Fintech led the region’s sectors, attracting $1.04bn in funding across 152 deals, a 164% increase from the previous year.
Background
Saudi Arabia led venture capital activity in the Middle East in 2025, raising $1.72bn in funding and recording 257 deals, according to MAGNiTT’s annual report on venture capital in emerging markets. Funding in the Kingdom rose 145% year on year, while deal volume increased 45%, making it the most active market in the region by both value and count.
The report showed that overall Middle East venture funding climbed 89% to $3.43bn in 2025, while total transactions reached a record 581 deals, up 13% from the previous year. MAGNiTT said the rebound was supported by stronger investor confidence, the return of late-stage liquidity, and improved regional stability.
Philip Bahoshy, CEO and founder of MAGNiTT, said investors became more selective during the year, focusing on strong fundamentals, scale, and clear paths to liquidity. He added that despite global uncertainty, the Gulf continued to position itself as a long-term base for venture and private capital.
Across the wider MENA region, venture funding reached $3.8bn across 688 deals, marking a 74% rise in funding and a 6% increase in deal activity. Saudi Arabia ranked second globally among emerging venture markets by deal count, behind Singapore, while the UAE recorded 231 deals.
Fintech remained the strongest sector in the Middle East, attracting $1.04bn in funding, up 164%, across 152 deals, a 48% rise. Other sectors such as e-commerce, sports and fitness, telecoms and enterprise software also saw strong inflows.
Late-stage funding played a key role, with five mega deals totaling $1.04bn completed during the year. Exits in the Middle East rose 19% to 32, supported by a 41% increase in mergers and acquisitions.
MAGNiTT said the region’s growing role in global finance, rising foreign investor presence, and strong policy support have strengthened its venture ecosystem, though it warned that geopolitical risks remain.
