The Middle East and North Africa’s startup ecosystem is heating up. July 2025 turned out to be a record-breaking month, with startups in the region raising $783 million — a massive 1,411% jump compared to June, and more than double the total raised in July last year.

At the center of this funding wave are Saudi Arabia and the UAE, both continuing to attract serious investor attention as they push ahead with economic transformation agendas, including Vision 2030.

Saudi Arabia topped the funding chart with $396.5 million raised across 16 deals, while the UAE followed with $359 million across 22 startups. Iraq made a surprise entry into third place, thanks to a $15 million round for InstaBank. Morocco followed, buoyed by Ora Technologies’ $7.5 million raise, while Egypt — traditionally a regional leader — dropped to fifth position with just $4 million raised, impacted by ongoing macroeconomic and currency challenges.

In a shift that signals growing investor appetite for innovation-heavy ventures, deeptech overtook fintech, pulling in $250.3 million across just four deals. E-commerce was close behind with another $250 million, led by Ninja’s record-breaking raise. SaaS secured $89 million, while fintech slipped to $61 million — a clear sign of maturing priorities in regional capital allocation.

This tilt toward IP-driven sectors like AI, robotics, and immersive tech reflects both global trends and the region’s strategic bets on long-term technological leadership.

Two names dominated the headlines: Ninja and XPANCEO, together accounting for over half of the month’s total raised capital. Series A rounds pulled in $267 million from just three startups, while early-stage investments totaled $36 million across 26 companies. Debt financing remained negligible at just 2%, reinforcing the equity-heavy nature of MENA’s funding landscape.

Consumer-facing startups made a big comeback, with B2C ventures grabbing $534 million, led again by XPANCEO and Ninja. B2B models followed with $202.4 million, while the rest went to hybrid or direct-to-consumer plays. This marks a notable reversal from early 2025, when enterprise and SaaS solutions had the upper hand.

Despite more women-led startups entering the spotlight, the gender funding gap persists. Male-founded companies raised $774.5 million, while mixed teams secured $5.8 million. Female-founded startups received just $3 million, showing there’s still work to do in leveling the playing field across the MENA startup scene.

Seven months into the year, MENA startup funding has already surpassed 2024’s full-year total — signaling investor confidence and a maturing ecosystem. While Saudi Arabia and the UAE continue to lead, newer players like Iraq and Morocco are beginning to emerge as serious contenders.

From deeptech and AI to eCommerce and SaaS, the regional funding shift shows where opportunity lies. The combination of large late-stage rounds and consistent early-stage momentum suggests MENA is not just catching up — it’s setting its own pace.

For founders, investors, and policymakers, the message is clear: now is the time to build. And for those watching how AI and innovation intersect with Gulf economic transformation — this is just the beginning.