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MENA startups funding reaches almost $500m a month: report 

MENA startups funding reaches almost $500m a month: report 
Saudi startups secured the largest share of funding in February, raising $250.3 million across 25 deals. Shutterstock
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Updated 03 March 2025

MENA startups funding reaches almost $500m a month: report 

MENA startups funding reaches almost $500m a month: report 

RIYADH: Investment in Middle East and North Africa startups surged nearly fivefold in February, with funding reaching $494 million across 58 deals, according to Wamda’s monthly report. 

The sharp increase follows a January dominated by debt financing, which accounted for 90 percent of investments. 

However, in February, debt financing dropped to 15 percent, with equity investments driving growth. Excluding debt, month-on-month funding rose 371 percent. 

Ƶ and UAE lead regional investment 

Saudi startups secured the largest share, raising $250.3 million across 25 deals, fueled by major announcements at LEAP 2025. The UAE followed with $203.5 million across 15 deals, while Egypt ranked third with $27.5 million from eight deals. 

Oman returned to the top four, securing $6 million across two deals. Smaller investments were recorded in Morocco, Tunisia, and Jordan, as well as Bahrain and Qatar. 

Morocco and Jordan each saw $1 million invested across two and one deals, respectively.  

Tunisia recorded $300,000 across two deals, while Bahrain secured $1.7 million in a single transaction, and Qatar saw $2.7 million invested in two deals. 

Fintech leads sectoral investments 

Fintech attracted the highest funding, securing $274 million across 15 deals. Insurtech followed with $55 million, while logistics raised $28.5 million in four deals. 

Other notable sectors included martech and edtech, each raising $28 million, and contech securing $17.7 million. Cleantech startups attracted $15 million, while AI-focused startups secured $14 million. 

Software-as-a-Service companies raised $13.4 million, while e-commerce and Web3 startups secured $6.9 million and $5 million, respectively.  

Healthtech, e-services, foodtech, and regtech startups attracted smaller amounts, ranging from $866,000 to $2.9 million. Mobility, mediatech, and gametech startups each raised under $200,000. 

Later-stage funding gains momentum 

February saw an increase in later-stage funding rounds, with buy now, pay later giant Tabby securing $160 million in Series E funding, the largest single deal of the month.  

Flow48, an alternative finance platform, raised $69 million, while Applied AI secured $55 million, making them the other two standout mega deals. 

Series A startups collectively raised $158 million across seven deals, while series B funding reached $56 million across two rounds.  

Pre-series B funding accounted for $22.7 million across eight transactions, while pre-Series A startups raised $5.5 million across five deals. 

In contrast, early-stage funding was widely distributed, with 15 pre-seed startups raising $22 million and 10 seed-stage startups securing $27.8 million.  

Equity investments accounted for $2.5 million across four deals, while one grant of $1.7 million was recorded. 

B2B startups attract most investment 

Startups operating under the business-to-business model attracted the largest share of investment, raising $191.6 million across 33 deals.  

Business-to-consumer startups followed with $138.5 million secured across 18 deals.  

Meanwhile, six startups operating in both B2B and B2C models raised a combined $164 million. 

Gender disparity in startup funding persists 

Investment remained heavily skewed toward male-led startups, which secured $428.7 million, accounting for 86.7 percent of total funding.  

Mixed-gender teams attracted $65 million, representing 13.2 percent of investments, while female-founded startups received just $200,000, highlighting the ongoing gender disparity in the region’s startup funding landscape. 

Venture capital activity on the rise 

MENA’s venture capital ecosystem is also seeing renewed interest from international investors.  

500 Global, a US-based VC firm, recently launched 500 MENA L.P., a dedicated fund focused on high-growth tech startups in the region.  

The fund aims to support companies beyond the seed stage, catalyzing further expansion of the region’s technology ecosystem. 

Additionally, Al Madinah Angels Network was recently established in Ƶ to support startups under the Al Madinah Ventures Initiatives.  

This angel investor group seeks to provide early-stage funding and mentorship to founders, contributing to the region’s broader economic growth strategy. 

Ƶ continues to be the leading VC investment hub in the region, having secured $750 million in total venture capital funding in 2024. 

The country’s sustained leadership in startup investment underscores its growing influence as a center for entrepreneurship and innovation in MENA. 

Other countries are following the regional trend. Earlier in February, the Qatar Investment Authority announced that it is advancing its $1 billion “fund of funds” venture capital program.  

The initiative, currently evaluating eight new VC firms, aims to fill funding gaps in series A, B, and C rounds while encouraging participating firms to establish offices in Doha to build a stronger local ecosystem. 


SME lending in Ƶ surges past $112bn

SME lending in Ƶ surges past $112bn
Updated 22 October 2025

SME lending in Ƶ surges past $112bn

SME lending in Ƶ surges past $112bn

RIYADH: Lending to small, medium, and micro enterprises in Ƶ reached a record SR420.7 billion ($112.18 billion) by the end of the second quarter of 2025, up 37 percent from the same period last year, official data showed.

This represents an increase of more than SR113.3 billion compared with the second quarter of 2024, when SME facilities stood at SR307.4 billion, the Saudi Press Agency reported, citing data from the Saudi Central Bank, also known as SAMA.

On a quarterly basis, SAMA’s monthly statistical bulletin for August reported that lending increased 10 percent from SR383.2 billion at the end of the first quarter, adding SR37.5 billion in new credit.

It also aligns with Vision 2030’s target to increase SME contributions to gross domestic product from 30 percent to 35 percent. With more than 1.8 million SMEs operating in the Kingdom, supporting this sector financially is not just a policy goal but a macroeconomic necessity.

“The bulletin indicated that the facilities provided by the banking sector amounted to SR402.1 billion, constituting about 96 percent of the total facilities, while the facilities provided by the financing companies sector amounted to SR18.6 billion,” the SPA report stated. 

Medium-sized enterprises received the largest share of bank lending, securing SR198.9 billion, about 49 percent of total banking facilities. Small enterprises, meanwhile, dominated the financing companies’ portfolio, with SR8.5 billion, representing 46 percent of that sector’s total.

Overall, medium enterprises led total SME facilities with SR206.4 billion, representing 49 percent, followed by small enterprises at SR154.2 billion, or 37 percent, and micro enterprises at SR60.1 billion, accounting for 14 percent.

According to the General Authority for Small and Medium Enterprises, medium enterprises are defined as those with revenues between SR40 million and SR200 million or 50–249 employees.

Small enterprises have revenues of SR3 million to SR40 million, or six to 49 employees, while micro enterprises generate less than SR3 million or employ one to five people.


OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General

OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General
Updated 22 October 2025

OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General

OPEC sees global oil demand rising to 123m bpd by 2050: Secretary-General

JEDDAH: Global demand for oil is expected to reach around 123 million barrels per day by 2050, with the crude maintaining the largest share of the global energy mix at nearly 30 percent, OPEC Secretary-General Haitham Al-Ghais said.

Speaking at a conference in Kuwait on Oct. 22, Al-Ghais said demand for all types of fuel will continue to rise through 2050 and beyond, driven by population growth, economic expansion, rising urbanization, and the emergence of new energy-intensive industries, the Saudi Press Agency reported.

Al-Ghais added that meeting this projected demand will require massive investments estimated at about $18.2 trillion by 2050.

 


Closing Bell: Saudi main index ends in green at 11,585 

Closing Bell: Saudi main index ends in green at 11,585 
Updated 22 October 2025

Closing Bell: Saudi main index ends in green at 11,585 

Closing Bell: Saudi main index ends in green at 11,585 

RIYADH: Ƶ’s Tadawul All Share Index rose on Wednesday, gaining 40.10 points, or 0.35 percent, to close at 11,585.90. 

The total trading turnover of the benchmark index was SR5.35 billion ($1.42 billion), as 91 of the listed stocks advanced, while only 163 retreated. 

The MSCI Tadawul Index also increased, up 3.47 points, or 0.23 percent, to close at 1,510.94. 

The Kingdom’s parallel market Nomu lost 36.98 points, or 0.15 percent, to close at 25,035.14. This comes as 39 of the listed stocks advanced, while 40 retreated. 

The best-performing stock was CHUBB Arabia Cooperative Insurance Co., with its share price surging 9.91 percent to SR32.84. 

Other top performers included LIVA Insurance Co., which saw its share price rise by 4.57 percent to SR13.50, and Ƶn Oil Co., which saw a 3.75 percent increase to SR25.98.

On the downside, Canadian Medical Center Co. saw the largest drop, with its share falling 8.84 percent to SR8.25. 

Tourism Enterprise Co. fell 8.43 percent to SR15.75, while Naseej International Trading Co. dropped 7.04 percent to SR62.70. 

On the announcements front, the Saudi Investment Bank released its interim financial results for the first nine months of the year. 

Net profit reached SR518.4 million, up 0.11 percent year on year and 1.15 percent compared with the previous quarter. The bank attributed the modest annual increase to a decline in total operating expenses. 

In a statement on Tadawul, the bank said that total operating income had decreased by 3 percent, mainly due to a drop in net special commission income and fair value through the statement of income, partially offset by higher exchange income and fee income from banking services. 

SAIB’s shares traded 1.94 percent lower on the main market to reach SR13.67. 


Egypt’s labor reforms aim to attract Qatari investment 

Egypt’s labor reforms aim to attract Qatari investment 
Updated 22 October 2025

Egypt’s labor reforms aim to attract Qatari investment 

Egypt’s labor reforms aim to attract Qatari investment 

JEDDAH: Egypt and Qatar are set to deepen economic ties, with the North African country’s recent labor law reforms aimed at attracting Gulf investment and improving the business environment. 

Egypt’s Minister of Labor, Mohamed Abdel Aziz Gibran, met in Cairo with Mohamed bin Ahmed Al-Obaidli, a board member of the Qatar Chamber, to discuss boosting bilateral economic cooperation and encouraging Qatari investors to enter the Egyptian market.

The two sides also reviewed Egypt’s labor law and discussed ways to tackle challenges facing investors in the country’s labor market, according to the Qatar News Agency.

In mid-April, the two countries agreed to pursue a package of $7.5 billion in direct Qatari investments. The move comes as Egypt steps up efforts to secure funding from Gulf neighbors and other foreign partners to address high foreign debt and a large budget deficit. 

“During the discussions, HE the Minister reviewed the latest amendments to the Egyptian Labor Law, which include the establishment of an emergency fund to support workers and struggling companies, as well as the creation of an entity dedicated to training and upgrading workers’ skills,” QNA reported. 

It added that the Egyptian official said the new law seeks to create a more favorable work environment and promote a stable, secure climate for investors in Egypt. 

The meeting also reviewed the outcomes of Gibran’s recent visit to Qatar, during which he met with representatives of the Qatari private sector. 

“The visit resulted in positive understandings aimed at strengthening cooperation in the fields of labor, training, and employment,” the QNA report added. 

Al-Obaidli praised the strong fraternal ties between the countries, emphasizing the Qatar Chamber’s commitment to broadening cooperation across economic, commercial, and investment sectors. 

Egypt enacted Labor Law No. 14 of 2025, which took effect on Sept. 1, fully replacing previous labor legislation. 

The law introduces a wide range of reforms designed to modernize labor relations, enhance workers’ rights, and align with international labor standards.

It requires employers to provide annual salary increments, recognizes modern work arrangements such as remote work, part-time roles, flexible hours, and job sharing, and obliges them to contribute to a workforce training fund. 

The law also updates notice periods for resignations, extends maternity and paternity leave provisions, allows longer childcare leave, and regulates annual leave entitlements, including special provisions for disabled employees. 


Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 

Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 
Updated 22 October 2025

Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 

Gulf sovereign funds fuel global M&A boom, driving deal value to $3.5tn 

RIYADH: Sovereign wealth funds from the Middle East and Asia are driving a resurgence in global mergers and acquisitions, with deal volumes surpassing $3.5 trillion since the start of the year, Asharq Business reported. 

The surge marks a 34 percent increase over the previous year, putting 2025 on track to be the strongest year for M&A since 2021. The third quarter alone saw over $1.3 trillion in deals, driven by a number of mega-transactions, according to data compiled by Bloomberg. 

The flurry of activity has been led by mega-deals involving some of the world’s deepest-pocketed state-backed funds. 

On Oct. 21, Blackstone Inc. and TPG Inc. agreed to acquire medical device maker Hologic Inc. for up to $18.3 billion, including debt. The deal features the Abu Dhabi Investment Authority and Singapore’s sovereign wealth fund GIC Pte as minority investors. 

In a separate transaction last week, BlackRock Inc. partnered with MGX, an AI firm backed by Abu Dhabi’s Mubadala Investment Co., in a $40 billion deal to acquire Aligned Data Centers. 

The week prior, Carlyle Group Inc. entered a partnership with the Qatar Investment Authority to purchase the coatings unit of BASF SE in a deal that valued the unit at €7.7 billion ($8.9 billion). 

In a landmark transaction in September, Ƶ’s Public Investment Fund, chaired by Crown Prince Mohammed bin Salman, completed the acquisition of video game giant Electronic Arts Inc. to take it private. This leveraged buyout, valued at $55 billion, stands as the largest of its kind in history. 

Beyond participating with private equity, sovereign wealth funds are aggressively expanding their in-house investment teams to execute more direct investments. This strategy allows them to capture profits without paying fees to Wall Street banks. 

They have also become major backers of private equity funds, successfully negotiating privileges that grant them co-investment rights alongside these funds in exchange for their substantial capital commitments. 

Heavy tech and AI focus 

The technology sector has been a particular focus for these funds. In August, ADIA supported Thoma Bravo’s acquisition of HR software provider Dayforce Inc. for nearly $12 billion. 

MGX, backed by the Abu Dhabi government and overseen by Sheikh Tahnoon bin Zayed Al Nahyan, has invested in OpenAI at a $500 billion valuation. It has also supported Elon Musk’s xAI venture and plans to contribute to the “Stargate” project announced by US President Donald Trump. 

Meanwhile, Singapore’s GIC and the Qatar Investment Authority have both invested substantial capital in OpenAI’s competitor, Anthropic. 

Wall Street sees deals continuing

Senior investment bankers anticipate that the M&A wave will persist. Goldman Sachs has predicted that deal activity will accelerate by year-end, with 2026 potentially setting a new record for the M&A market. 

Sovereign funds continue to hunt for new opportunities. For instance, the asset management arm of Mubadala is reportedly considering a bid for outdoor advertising company Clear Channel Outdoor Holdings Inc., which has a market value of approximately $930 million. 

Their investment interests are also expanding beyond direct acquisitions. Qatar Investment Authority recently participated in an over $2 billion funding round for a new company founded by Hollywood super-agent Ari Emanuel, alongside other investors like Apollo Global Management and Ares Management.