In March 2025, investment in startups in the MENA region fell by 76% to $127.5m across 28 deals, compared to $530m in February.
However, according to Wamda, the first quarter of 2025 saw strong growth in venture capital funding. With $1.5 billion raised, this represents a 244% increase on the $442 million raised in the same period in 2024.
Wamda points out that the US trade war against its global partners has had a negative impact on the MENA region, causing significant economic damage in key countries such as Egypt, Jordan, Saudi Arabia and the United Arab Emirates.
Indeed, the tremors in the global economy led to a 50% drop in the value and volume of investments compared to the previous year.
The startup ecosystem in the United Arab Emirates (UAE) dominated the MENA region with a total of $104.4 million raised in 14 deals, consolidating its position as the leader in terms of funding.
Egypt came second, although its four startups raised only $11.6 million, followed by Saudi Arabia, whose five startups secured a total of $8 million in funding.
In the rest of North Africa, Morocco saw one of its startups raise $1.9 million, while Tunisia unfortunately stands out with just $100,000 raised in a single transaction.
As usual, the fintech sector dominated, attracting $82.5 million in 10 deals. Healthtech followed, but at a distance, with only $16 million invested in two deals, while Artificial Intelligence attracted $14 million across four startups.
Furthermore, female entrepreneurs were completely excluded from funding opportunities in March, receiving no investment at all. In contrast, male founders secured $113 million, with the remainder going to startups co-founded by men and women.
