Startup Investment Landscape in MENA – July 2025

The month of July 2025 witnessed significant developments in the startup investment and funding ecosystem across the Middle East and North Africa.

Several major funding rounds were closed, notable acquisition deals were announced, and strategic alliances were formed, alongside the launch of new entities targeting digital transformation in sectors such as payments, artificial intelligence, and logistics.

Major Funding Rounds: Logistics and Telecom Lead the Way

Startups in the region secured record-breaking investments during July, with the most prominent rounds including:

• Ninja (Saudi Arabia): Raised $250 million in a round led by Riyadh Capital, pushing its valuation to $1.5 billion and joining the unicorn club.
• Airalo: Secured $220 million in a round led by CVC, becoming the first eSIM company to surpass the $1 billion valuation mark.
• Huspy: Closed a $59 million Series B round to support its expansion in Saudi Arabia and Spain.
• BlueFive Capital: Raised $120 million in a seed round less than six months after launch.
• BioSapien: Expanded its pre-Series A round to exceed $8 million.

Key Acquisition Deals (1–12 July 2025): Strategic Expansion in the Gulf

Between 1 and 12 July, several acquisition deals were announced, signaling a growing trend toward regional consolidation—particularly in the real estate and logistics sectors:

• Nawy (Egypt) acquired a majority stake in SmartCrowd (UAE) following a $52 million funding round.
• Jahez (Saudi Arabia) acquired 76.56% of Qatar-based Snoonu in a $245 million deal.
• Zodia Custody acquired UAE-based Tungsten to strengthen its presence in the digital asset custody sector.

Strategic Alliances and Mega Entities

An investment consortium led by Brookfield announced the formation of the largest digital payments entity in the Middle East and Africa, through the merger of Network International and Magnati.

The new entity will operate across more than 50 markets, handling annual transactions exceeding $400 billion, with a strong focus on digital payments, data analytics, and cybersecurity.

Regional and International Expansion: Supporting Emerging Markets and Fintech Innovation

Several startups expanded into new markets:

• InstaBank raised $15 million to launch its operations in Iraq.
• TruKKer secured an additional $15 million to support its expansion in Saudi Arabia and the UAE.
• Stride Ventures closed the first round of its “ADGM Fund V” and plans to invest $110 million in high-growth Gulf startups.
• HUMAIN (Saudi Arabia) partnered with the South Korean government to support the entry of 27 Korean startups into the Saudi market, in line with Vision 2030.

Regulatory and Tech Developments: Driving Innovation and Market Oversight

• The Central Bank of Bahrain issued a new regulatory framework for licensing and supervising single-currency stablecoin issuers.
• Google officially launched its Veo 3 model in the Middle East via the Gemini app, enabling AI-generated video content creation.
• eBay introduced its SpeedPAK express shipping service in the UAE in partnership with DHL Express.

Sector-Based Investment Distribution

Investor priorities during July were evident in the sectors that attracted the highest funding:

Looking Ahead: August 2025 Outlook

• Momentum is expected to continue in artificial intelligence, cloud services, and fintech sectors.
• Saudi startups are likely to pursue further expansion in Gulf and Egyptian markets, supported by liquidity and state-backed strategies.
• More acquisition deals are anticipated, particularly those aimed at technological integration and non-organic growth.

Conclusion

The data from July 2025 reflects an increasingly dynamic startup landscape in the MENA region, fueled by investor confidence, new funding vehicles, and rising interest in emerging technologies.

The second half of the year appears to be ripe with opportunity, especially in Gulf markets and advanced tech verticals.

العربية (Arabic) To read the article in Arabic, click here