MENA startups raised $289 million in May 2025, led by Egypt
The startup ecosystem in the Middle East and North Africa (MENA) showed renewed momentum in May 2025, raising a total of $289 million across 44 deals. This marks a 25% increase from April and a slight 2% uptick year-on-year. Debt financing made up just 9% of the overall investment volume, with most capital directed toward equity deals.
Egypt reclaimed its position as the region's top-funded ecosystem, largely driven by Nawy's impressive $75 million round. Beyond Nawy, seven other Egyptian startups collectively raised $50 million—activity levels not seen since July of last year.
The UAE followed in second place with $86.7 million raised across 14 deals. Saudi Arabia came close behind, attracting $69 million through 15 deals. Notably, Kuwait re-emerged on the investment map, with two startups securing a combined $6 million, placing the often-overlooked GCC member in fourth position.
AI buzz in the GCC fails to translate into funding
Artificial intelligence drew significant attention in the Gulf last month, particularly following a visit by U.S. President Trump alongside leading AI executives from Silicon Valley. The trip prompted both Saudi Arabia and the UAE to unveil major initiatives aimed at boosting their local AI ecosystems.
Despite the political fanfare and media buzz, actual investment in AI startups fell short of expectations. The sector secured just $25 million across two deals—highlighting a gap between narrative and market reality.
Fintech leads; proptech and mediatech Follow
Fintech once again proved its strength in the region, drawing $86.5 million through 14 funding rounds. Thanks to Nawy's raise, proptech climbed to second place in terms of sectoral funding. Meanwhile, mediatech startups raised a total of $32 million from two deals, and contech startup WakeCap brought in $28 million.
Late-stage deals were notably absent from the month's activity. Only one pre-Series C round was recorded at $12 million, while early-stage investments dominated, accounting for $161 million of the total funding.
B2B startups remain investor favorites
Startups operating in the business-to-business (B2B) space continued to attract the lion's share of investor interest. In May, B2B startups raised $157 million across 29 deals. Companies with hybrid (B2B/B2C) models brought in $79 million, while B2C startups saw significantly less attention, with nine companies raising a total of $53 million.
Gender Disparity Persists
The gender gap in funding remained wide. Startups founded solely by men captured 82% of the total capital raised. In comparison, female-founded startups secured just 7%, while teams with both male and female co-founders attracted nearly 11%.
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