According to data from Wamda, startups in the Middle East and North Africa (MENA) region raised a record amount of $3.5 billion in September, spread across 74 deals.
This is a record level, marked by an increase of 914% month-on-month and 1,105% year-on-year, representing a spectacular leap compared to the $337.5 million recorded in August.
Even excluding the $2.6 billion in debt financing, September remains one of the most dynamic months in the sector’s history. Equity funding grew by 147% month-on-month and 194% year-on-year.
For Wamda, this “record” September “crowns an exceptional third quarter.” Since the beginning of the year, total funding now stands at $6.6 billion, already surpassing most annual totals recorded since 2021, spread across 514 funding rounds.
Saudi Arabia dominates
In terms of geographical distribution, this surge in funding was largely driven by a wave of mega-deals in Saudi fintechs. Saudi Arabia once again dominated the regional scene, with 25 startups raising a total of $2.7 billion, representing nearly three-quarters of the amounts invested in the region.
The United Arab Emirates comes in second place, with 26 startups collectively raising $704.3 million. Behind them, Omani startups raised $7.7 million spread across three deals, while Moroccan startups attracted $6.8 million through six funding rounds.
In contrast, Egyptian startups are struggling to regain their momentum, raising only $32 million across seven deals.
As for Tunisia, it recorded only one funding round in September, a symbolic amount of $100,000. In total, since the beginning of the year, three Tunisian startups have raised $427,500.
Fintech in Pole Position
Fintech dominated sector activity, representing $2.8 billion spread across 25 deals, primarily driven by Saudi mega-transactions. It is followed by PropTech, which raised $528.6 million.
AI startups, meanwhile, raised $34.3 million across seven deals, while HRtech companies collectively raised $24.2 million.
Despite the predominance of growth-stage funding and debt rounds, early-stage startups accounted for the majority of deals, with 55 companies raising $129.4 million. For comparison, four startups in late development stages closed larger rounds, totaling $699 million.
The gender imbalance remains pronounced. Startups founded by men raised $3.3 billion, while companies founded by women raised only $11 million across four transactions.
