RIYADH: Venture capital funding in the Middle East surged to a record $2.77 billion in the first nine months of 2025, defying a global downturn, according to MAGNiTT.
Funding jumped 152 percent year on year, with the number of deals rising 10 percent to 388, highlighting the region’s growing appeal to global investors even as capital flows into Southeast Asia, Africa, and Pakistan weakened.
The surge reflects broader trends in the Middle East venture capital ecosystem, where early-stage and non-mega funding showed robust growth despite global headwinds.
In the third quarter alone, capital surged to $1.2 billion — its highest quarterly total on record — propelled by three mega rounds: XPANCEO’s $250 million series A and Airalo’s $220 million series C in the UAE, and Hala’s $157 million Series B in Saudi Arabia.
Philip Bahoshy, CEO of MAGNiTT, said: “The first nine months of 2025 marked the recovery of the MENA venture capital ecosystem. Not only did the region cross $3 billion in funding by September, but it also outperformed Southeast Asia for the first time for the first nine months of the year.”
