RIYADH: Saudi Arabia led venture capital activity in the Middle East in 2025, pulling in $1.72 billion in funding — up 145 percent year on year — and recording 257 deals, a 45 percent increase, a new report showed.
According to MAGNiTT’s annual report on venture capital in emerging markets, the Kingdom ranked as the most active in the region by both funding and deal count, as Middle East fundraising climbed to $3.43 billion, up 89 percent from 2024, and total transactions reached a record 581 — a 13 percent annual increase.
MAGNiTT attributed the Middle East’s rebound to a return of late-stage liquidity and stronger investor sentiment, supported by “diplomatic ties, key events, and rising investor confidence.”
The report said the region also posted a record $1 billion in “mega deals,” alongside a narrowing funding gap with Southeast Asia, as the Middle East outpaced the sub-region in deal activity for the first time.
Speaking to Arab News about the investment market in 2025, Philip Bahoshy, CEO and founder of MAGNiTT, said shifting priorities shaped deployment decisions through the year.
