Saudi Arabia Leads Venture Capital in MENA With $860 Million in First Half of 2025
Saudi Arabia was the top country in the Middle East and North Africa (MENA) for venture capital (VC) investments in the first half of 2025. It attracted $860 million—more than it raised in all of 2024—according to a new report from MAGNiTT.
Saudi Arabia Tops the List
The country received 56% of all VC money in the region and completed 114 investment deals. This shows strong trust from investors and the success of Saudi Arabia’s Vision 2030 plans to grow its economy and support new businesses.
The CEO of Saudi Venture Capital (SVC) said that government efforts to support startups and reduce reliance on oil helped make this possible.
Saudi Arabia and the UAE were the busiest countries for VC deals. Both had a high number of deals, with the UAE showing strong growth in mid-sized investments. Early-stage startup investments also stayed strong.
Mergers and acquisitions (M&A) in the region also increased, reaching the highest level for a first half of the year since 2022.
This growth is being driven by government reforms and funding programs meant to grow the VC sector.
Top Sectors and Regional Growth
Fintech remains the top investment sector, while enterprise software, education tech, and AI startups are becoming more popular.
MENA was the only emerging market where both total investment and number of deals increased in early 2025. The region raised $1.55 billion through 310 deals, showing a strong return in mid-sized investments and growing interest from global investors.
The report says MENA’s success is thanks to strong government support, low inflation, stable economic policies, and big events like LEAP 2025. A more developed startup scene and more cross-border investments have also helped boost VC activity across the region.
Published: 16th July 2025
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