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Fintech News ME
14-07-2025
- Business
- Fintech News ME
UAE Tech Funding Surges 133% in H1 2025, Driven by Late-Stage Deals
Tracxn has released its UAE Tech H1 2025 Report, providing a detailed overview of the country's technology funding landscape during the first half of the year. The report highlights a strong rebound in investment activity compared to H2 2024, although overall funding remains below the levels recorded in H1 2024. Late-stage funding was the main driver of this recovery, with notable performances across enterprise applications, fintech, and retail sectors. Total funding in H1 2025 reached US$1.0 billion, marking a 133% increase from the US$438 million raised in H2 2024. However, this represents a 43% decline compared to the US$1.8 billion recorded in H1 2024. Despite the year-on-year drop, the half-yearly recovery positions the UAE as one of the most active tech ecosystems in the MENA region during this period. Seed-stage funding fell sharply to US$32.7 million, down 74% from US$125 million in H2 2024 and 71% from US$111 million in H1 2024. Early-stage funding reached US$167 million, down 13% from H2 2024 (US$193 million) but up 4% compared to H1 2024 (US$160 million). Late-stage investment saw a substantial rise to US$817 million, up 583% from H2 2024 (US$120 million), though still 46% lower than H1 2024 (US$1.5 billion). Among sectors, enterprise applications led with US$728 million in funding, up 543% from H2 2024 (US$113 million) but down 56% from H1 2024 (US$1.7 billion). Fintech followed with US$286 million, up 47% from H2 2024 (US$195 million) and up 276% from H1 2024 (US$76.2 million). The retail sector secured US$172 million, a 20% increase from H2 2024 (US$144 million) and a 275% rise from H1 2024 (US$46 million). Two companies secured US$100M+ funding rounds in H1 2025, compared to one in each of the previous two half-year periods. Vista Global raised US$600 million in a private equity round, while Tabby raised US$160 million in a Series E round. These major deals were concentrated in the enterprise applications, retail, and fintech sectors. Micropolis was the only UAE tech company to go public during this period. No new unicorns were created in H1 2025, nor in the two preceding half-year periods. There were nine acquisitions involving UAE tech firms in H1 2025, a slight decline from the ten deals recorded in both H2 2024 and H1 2024. Notable transactions included the acquisition of Everdome by Hokoworld, Gulf Craft by Saronic, and Property Monitor by Dubizzle Group. Dubai-based companies continued to dominate the UAE's tech funding landscape, accounting for 93% of total funding in H1 2025. Abu Dhabi followed at a distant second. The top investors overall in H1 2025 included 500 Global, Wamda Capital, and Middle East Venture Partners. Leading seed-stage investors were Oraseya Capital, Plus VC, and Endeavor. Top early-stage investors included e&, Flourish, and MoreThan Capital Advisors. Saudi Arabia-based STV emerged as the most active late-stage investor, adding one company to its portfolio during the period. In summary, the UAE tech ecosystem experienced a robust recovery in H1 2025, largely propelled by a surge in late-stage investment and strong sectoral performances. While seed funding contracted significantly, the presence of multiple large deals and continued investor interest reaffirmed the UAE's position as a key player in the global tech investment landscape.
Khaleej Times
13-07-2025
- Business
- Khaleej Times
UAE surpasses Japan, Sweden in tech funding as late-stage investments fuel surge
The UAE has outpaced mature technology ecosystems like Japan and Sweden in total tech funding during the first half of 2025, underscoring its rising stature as a global innovation hub. A new report from Tracxn reveals that UAE tech startups raised $1 billion in H1 2025, buoyed by a strong rebound in late-stage investments and robust activity across key sectors including enterprise applications, fintech, and retail. While the overall funding remained below H1 2024's figure of $1.8 billion, the 133 per cent increase over the $438 million raised in H2 2024 highlights a strong half-year recovery, positioning the UAE as one of the most active tech ecosystems in the Mena region while fuelling its ambition to become the Silicon Valley of the Middle East. Dubai-based firms dominated the funding landscape, accounting for 93 per cent of total capital raised, with Abu Dhabi trailing as a distant second. Notably, two companies — Vista Global and Tabby — secured funding rounds exceeding $100 million. Vista Global attracted $600 million in a private equity round, while Tabby secured $160 million in a Series E round. These mega-deals alone accounted for over 75 per cent of the total capital raised, reflecting continued investor confidence in high-growth UAE-based startups. Despite the headline growth, the report also pointed to areas of concern, particularly in early-stage and seed-stage investment activity. Seed-stage funding plunged 74 per cent to $32.7 million compared to $125 million in H2 2024 and fell 71 per cent compared to $111 million in H1 2024. Early-stage funding reached $167 million, down 13 per cent from H2 2024 but showing a slight four per cent uptick from H1 2024. The real momentum, however, came from late-stage deals, which surged to $817 million — an increase of 583 per cent over H2 2024. Sectoral performance varied widely. Enterprise Applications led with $728 million in total funding, a 543 per cent rise over H2 2024, though still down 56 per cent from H1 2024. FinTech saw an impressive 47 per cent jump to $286 million, while Retail tech funding increased 20 per cent to $172 million. Compared to the same period in 2024, FinTech and Retail recorded 276 per cent and 275 per cent growth respectively, reflecting growing investor appetite in consumer and financial services innovation. However, the first half of 2025 did not witness the creation of any new unicorns, continuing a trend seen in both halves of 2024. This absence highlights the capital's current focus on scaling existing ventures rather than propelling early-stage startups to billion-dollar valuations. In terms of exits, only one UAE tech company — Micropolis — went public during the period. Mergers and acquisitions continued at a steady pace with nine deals recorded in H1 2025, slightly lower than the 10 deals each in H2 and H1 2024. Notable transactions included Hokoworld's acquisition of Everdome, Saronic's takeover of Gulf Craft, and Dubizzle Group's acquisition of Property Monitor. The report also identified the leading investors across different funding stages. 500 Global, Wamda Capital, and Middle East Venture Partners emerged as the most active overall investors. Oraseya Capital, Plus VC, and Endeavor dominated the seed stage, while e&, Flourish, and MoreThan Capital Advisors were prominent in early-stage rounds. At the late-stage level, Saudi Arabia-based STV stood out, adding one UAE company to its portfolio. Industry analysts note that the surge in late-stage funding reflects a maturing ecosystem where investors are increasingly drawn to proven business models and scalable platforms. The growth also aligns with the UAE government's strategic push to foster a knowledge-based economy, backed by digital transformation initiatives and supportive regulatory frameworks. While seed-stage contraction signals caution among early investors, the UAE's strong late-stage activity and sectoral resilience suggest that the ecosystem remains well positioned for sustained growth. As Dubai continues to attract capital, talent, and global partnerships, the emirate is cementing its status as a leading tech hub not just in the region but on the world stage. The report noted that the remainder of 2025 will be critical in determining whether this momentum translates into new unicorns, deeper early-stage investment, and a broader diversification of capital across emerging sectors such as AI, clean tech, and mobility.
Khaleej Times
14-04-2025
- Business
- Khaleej Times
UAE tech startups raised $872m in Q1 2025, funding surges 194% from last quarter
Technology start-ups in the UAE raised a total of $872 million in the first quarter of 2025, a whopping 194 per cent increase over the same period last year, a report showed. Tracxn's Q1 2025 UAE Tech Funding Report highlights a remarkable surge in investment activity across the country's tech ecosystem. The UAE witnessed a significant rebound in venture funding during the quarter, marked by an influx of late-stage capital and an uptick in mega deals worth more than 100 million. 'With key sectors such as enterprise applications, fintech, and retail driving investment momentum, the ecosystem appears to be entering a phase of renewed investor confidence,' the report said. The surge in Q1 this year represents a dramatic 865 per cent rise from the $90.5 million raised in Q1 2024. 'This sharp climb in funding signals a notable shift in capital deployment patterns within the UAE's tech sector,' the report said. Seed-stage funding in Q1 2025 totalled $23.4 million, marking a decline of 77 per cent compared to $100 million in Q4 2024 and a 62 per cent drop from $61 million in Q1 2024. Early-stage investments amounted to $89 million in Q1 2025, a modest decline of 8 per cent from the $96.5 million raised in Q4 2024 but a substantial increase of 202 per cent over the $29.5 million raised in Q1 2024. Late-stage funding drove the overall funding surge, with $760 million raised in Q1 2025 an impressive 660 per cent increase over the $100 million raised in Q4 2024. Enterprise applications emerged as the leading sector in Q1 2025, securing a total of $688.1 million in funding. This represents a 664 per cent increase compared to the $90.1 million raised in Q4 2024 and a 1,111 per cent surge over the $56.8 million raised in Q1 2024. The FinTech sector followed with $215.6 million in funding, a 73 per cent increase from $124.6 million in Q4 2024 and a 574 per cent jump from $32 million in Q1 2024. The retail sector saw $171.5 million in funding in Q1 2025, reflecting a 134 per cent rise from $127.6 million in Q4 2024 and a staggering 13092 per cent increase compared to $1.3 million in Q1 2024. In Q1 2025, the UAE saw two funding rounds worth more than $100 million, compared to one such round in Q4 2024 and none in Q1 2024. Vista Global and Tabby were among the companies that raised over $100 million this quarter. Tabby raised a total of $160 million in a Series E round led by Blue Pool Capital, valuing the company at over $3300 million. Vista Global secured $600 million in a late-stage round led by RRJ Capital. A major part of these $100 million+ funding rounds came from Enterprise applications, FinTech, and retail sectors. Micropolis was the only company to go public in Q1 2025. There were no unicorns created in Q1 2025, Q4 2024, or Q1 2024. Tech companies in the UAE recorded six acquisitions in Q1 2025, maintaining the same level as Q1 2024. Cartlow was acquired by Basatne in what became the highest valued acquisition of Q1 2025, followed by the acquisition of HotCold Studio by Grandstores. Dubai-based tech firms accounted for 96 per cent of all funding seen by tech companies across the UAE in Q1 2025, establishing the city as the undisputed leader in attracting venture capital. Abu Dhabi followed at a distant second. 500 Global, Wamda Capital, and Middle East Venture Partners were the overall top investors in the United Arab Emirates tech ecosystem. Oraseya Capital, Plus VC, and Endeavor were the top seed-stage investors in Q1 2025. QED Investors and Tech Invest Com led early-stage investments in the country during the same period. The UAE tech ecosystem experienced a sharp surge in funding in Q1 2025, primarily driven by significant late-stage investments and multiple $100M+ deals in Enterprise Applications, FinTech, and Retail. While seed-stage investments declined, the dominance of Dubai in attracting capital, along with a strong uptick in acquisitions, highlights the growing maturity of the region's tech sector.
