During the second week of August 2025 (August 10–16), the Middle East and Arab region witnessed a remarkable wave of activity in the venture capital and acquisitions landscape.
From groundbreaking AI initiatives to strategic funding in gaming, Web3, and PropTech, the week highlighted the growing momentum of startups across Saudi Arabia, the UAE, and beyond.
This report by”EntArabi” provides a breakdown of key deals by country and sector, supported by fresh data and market insights.
Key Highlights of the Week
- PIF launches ALLaM 34B AI model via its subsidiary HUMAIN, focusing on Arabic language and Saudi culture.
- Coraly.ai (UAE) raises $2M pre-seed to expand into Saudi Arabia, Europe, and the US.
- Impact46 (Saudi Arabia) invests 25M SAR in five gaming studios, reinforcing the Kingdom’s position as a global gaming hub.
- HODL announces Dubai & Riyadh Web3 tour, bridging decentralized finance with traditional finance.
- Shahbandar partners with Tamara to enable BNPL services for over 18,000 merchants in Saudi Arabia.
- Perplexity shocks the market with a $34.5B acquisition offer for Google Chrome.
Investments by Country
| Country | Key Deals | Value |
| Saudi Arabia | Impact46 invests in 5 gaming studios (25M SAR); Shahbandar–Tamara BNPL deal; PIF launches ALLaM 34B | +25M SAR (≈$6.6M) + strategic partnerships |
| UAE | Coraly.ai raises $2M pre-seed for expansion in KSA, Europe, US | $2M |
| Regional / Global | HODL Web3 Tour (Dubai & Riyadh); Perplexity $34.5B Chrome bid | N/A (strategic + M&A) |
Investments by Sector
| Sector | Company / Deal | Value |
| Artificial Intelligence | PIF’s HUMAIN launches ALLaM 34B AI model | Strategic (undisclosed) |
| PropTech (AI-driven Real Estate) | Coraly.ai raises $2M pre-seed | $2M |
| Gaming & eSports | Impact46 invests in 5 gaming studios (Vahi, Najd, Game Cooks, Starvenia, Alpaca) | 25M SAR (≈$6.6M) |
| E-commerce / FinTech | Shahbandar partners with Tamara (BNPL for 18K stores) | Strategic partnership |
| Web3 & Blockchain | HODL Web3 Tour (Dubai & Riyadh, Oct–Nov 2025) | Ecosystem development |
| Tech M&A (Browsers) | Perplexity offers $34.5B to acquire Google Chrome | $34.5B |
Analysis
- Saudi Arabia continues to dominate the region’s investment landscape, with Impact46’s $6.6M injection into gaming studios underscoring the Kingdom’s ambition to become a global gaming and esports hub under Vision 2030.
- The Shahbandar–Tamara partnership further consolidates Saudi Arabia’s growing role in e-commerce infrastructure.
- The UAE maintains its position as a launchpad for regional and global expansion, as seen in Coraly.ai’s pre-seed round, targeting Saudi Arabia as its next growth market.
- Meanwhile, Dubai and Riyadh are positioning themselves as dual hubs for Web3 and blockchain, with HODL’s tour serving as a bridge between traditional finance and decentralized ecosystems.
- On the global stage, Perplexity’s bold $34.5B bid for Google Chrome shook the tech industry, reflecting the aggressive ambitions of AI-native companies to challenge entrenched tech giants.
Conclusion
- The second week of August 2025 highlighted a diverse flow of capital and strategic partnerships across AI, gaming, PropTech, and fintech. While Saudi Arabia leads in gaming and e-commerce innovation, the UAE remains a fertile ground for AI-driven startups.
- With the AI race heating up and Web3 gaining institutional traction, the region is entering a new phase where traditional and decentralized economies converge, positioning MENA as a rising player in global tech innovation.
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