TLDR: Startup funding in the Middle East and North Africa (MENA) region experienced an unprecedented surge in July 2025, reaching $783 million. This represents a remarkable 1,411% month-over-month increase and more than double the funding secured in July of the previous year. The significant jump was primarily driven by two mega deals involving Ninja, a Saudi Arabian trading platform, and XPANCEO, a Dubai-based deeptech firm specializing in smart contact lenses, which together accounted for 56% of the total investment. Saudi Arabia and the UAE led the regional funding landscape, while deeptech and e-commerce emerged as the top-funded sectors.
The Middle East and North Africa (MENA) region has kicked off the third quarter of 2025 with an extraordinary boom in startup investment, as July saw a colossal $783 million injected into 57 innovative startups. This monumental figure marks a staggering 1,411% increase from the previous month and more than doubles the total funding recorded in July 2024, signaling a maturing and increasingly attractive ecosystem for venture capital.
The dramatic surge was largely propelled by two significant mega deals that reshaped the month’s investment landscape. These rounds, involving Ninja and XPANCEO, collectively accounted for 56% of the total funding. Ninja, a Saudi Arabia-based trading platform, achieved unicorn status with a $250 million investment. Similarly, XPANCEO, a Dubai-based deeptech firm, secured a $250 million Series A round, valuing the company at $1.35 billion. XPANCEO is notable for its development of smart contact lenses that integrate advanced functionalities such as Augmented Reality (AR), health-monitoring, night vision, optical zoom, and wireless charging into a device thinner than a human hair.
Regionally, Saudi Arabia solidified its position as the undisputed leader, attracting $396.5 million across 16 distinct deals. The United Arab Emirates (UAE) followed closely, drawing $359 million across a higher volume of 22 startups, underscoring its continued appeal to investors. Further down the rankings, Iraq climbed to third place with a substantial $15 million deal for InstaBank, displacing Egypt from the top four. Morocco secured the fourth position with Ora Technologies’ $7.5 million funding round. In contrast, Egypt, a consistent fixture in the top three, slipped to fifth place, with its startups raising a more modest $4 million across seven deals, a decline attributed to macroeconomic pressures and currency volatility.
Sector-wise, deeptech emerged as the top-funded category for the first time in months, attracting $250.3 million across four deals, largely driven by XPANCEO’s significant raise. E-commerce made a strong comeback, also securing $250 million, primarily due to Ninja’s record-breaking investment. SaaS (Software as a Service) startups ranked third with $89 million across 12 deals, while fintech, once the region’s dominant sector, dropped to fourth, with $61 million invested in 11 transactions. This shift reflects a growing appetite for IP-heavy, innovation-led ventures and scalable consumer platforms.
In terms of funding stages, later-stage rounds brought in $158 million, while Series A deals raised a combined $267 million from three startups. An additional 26 early-stage startups secured $36 million. Debt financing remained marginal, making up just 2% of the month’s total, underscoring the dominance of equity-led transactions.
Despite the overall growth, a significant gender disparity in funding persists. Male-led ventures secured the vast majority of investment, raising $774.5 million across 43 deals. Mixed-gender founding teams received $5.8 million, while female-led startups attracted just $3 million across eight deals, highlighting a persistent funding gap despite growing visibility for women entrepreneurs.
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Overall, the robust performance in July means that MENA startup funding in the first seven months of 2025 has already surpassed the full-year total for 2024, indicating strong investor confidence and the region’s trajectory towards becoming a global innovation hub.
