{"id":12571,"date":"2025-05-07T02:17:31","date_gmt":"2025-05-07T02:17:31","guid":{"rendered":"https:\/\/fintechnews.ae\/?p=26005"},"modified":"2025-05-07T02:17:31","modified_gmt":"2025-05-07T02:17:31","slug":"uae-and-saudi-arabia-lead-mena-vc-increase-fintech-remains-top-focus","status":"publish","type":"post","link":"https:\/\/mena-fintech.org\/demo\/uae-and-saudi-arabia-lead-mena-vc-increase-fintech-remains-top-focus\/","title":{"rendered":"UAE and Saudi Arabia Lead MENA VC Increase; Fintech Remains Top Focus"},"content":{"rendered":"

Venture capital (VC) investment in the Middle East and North Africa (MENA) continues to rebound this year, driven by a rise in smaller funding rounds, strong investor focus on Saudi Arabia and the United Arab Emirates (UAE), and sustained support for fintech.<\/p>\n

According<\/a> to new data from Magnitt, a financial data platform focused on emerging markets across MENA, Pakistan, and Turkey, VC funding in the region reached US$678 million in Q1 2025, representing a 58% year-over-year (YoY) increase and marking the region\u2019s highest-funded quarter since Q4 2023.<\/p>\n

Small rounds below US$100 million led VC investment activity, accounting for 76.4% of the region\u2019s total funding in Q1 2025 with US$518 million. In particular, the quarter saw a notable increase in mid- to large-sized rounds, with the US$5 million – US$20 million and US$20 million+ ranges growing by seven points. Series A and Series B investments surged as well, with funding recording a fivefold YoY increase, growing from US$54 million in Q1 2024 to US$278 million in Q1 2025.<\/p>\n

\"Share
Share of deals in US$1-US$5 million bracket continues to increase in Q1 2025, Source: Magnitt, Apr 2025<\/figcaption><\/figure>\n

In Q1 2025, Saudi Arabia and the UAE continued to dominate the region\u2019s VC landscape, together accounting for 88% of deal value and 76% of deal count. This builds on momentum from 2024, when the two countries led<\/a> VC investment in MENA. Saudi Arabia topped the chart by total funding, securing US$750 million, while the UAE led in deal volume with 188 transactions.<\/p>\n

\"Middle
Middle East VC investment summary, FY 2024 Snapshot, Source: FY 2024 EVM Venture Investment Summary, Magnitt, Jan 2025<\/figcaption><\/figure>\n

Fintech remains top focus<\/h2>\n

This year, fintech remains MENA\u2019s most attractive sector for VC investment, capturing 57% of total funding in Q1 2025. The quarter was marked by significant rounds involving leading players across the region.<\/p>\n

Tabby, a buy now, pay later (BNPL) fintech unicorn from Saudi Arabia, raised<\/a> a US$160 million Series E funding round in February, pushing its valuation to US$3.3 billion. The company said it would use the proceeds to expand its financial services, including digital spending accounts, payments, cards, and money management tools.<\/p>\n

NymCard, a prominent embedded finance platform from the UAE, secured<\/a> a US$33 million Series B funding round in March to deepen its presence across 10+ markets in MENA, and strengthen its payment infrastructure solutions across its three core verticals, namely card issuing processing, embedded lending, and money movement. NymCard is partnered with more than 50 banks, fintech startups, and enterprises to deliver personalized financial offerings across the region.<\/p>\n

Khazna, a financial super-app from Egypt, raised<\/a> a US$16 million pre-Series B funding round in February to support its growth, with plans to apply for a digital banking license in Egypt and expand into the Saudi market. The Khazna platform integrates financial services such as loans and insurance directly into payroll accounts, alongside direct delivery of unsecured loans to gig economy workers. It claims 500,000 customers.<\/p>\n

Fintech, a historically leading vertical<\/h2>\n

Fintech was also the most funded tech sector in MENA last year, including debt, according<\/a> to a recent report by MENA startup data platform Wamda. The space captured 30% of total investment, continuing a trend that began in 2022. Last year, fintech attracted US$700 million in funding across 119 startups, highlighting its continued appeal to investors.<\/p>\n

\"Value
Value of investments, including debt, in MENA by sector, Source: Wamda, Jan 2025<\/figcaption><\/figure>\n

Investor appetite in fintech remained strong in April, with the sector continuing to dominate the investment landscape. Fintech companies in MENA raised US$44 million last month, accounting for 19% of total funding of US$228.4 million, according<\/a> to Wamda.<\/p>\n

Notable rounds included Fuse Finance\u2019s US$6.6 million seed round<\/a>, Zest Equity\u2019s US$4.3 million pre-Series A<\/a>, and Erad\u2019s US$16 million pre-Series A<\/a>.<\/p>\n

Fuse Finance is an online fintech platform providing payout solutions for businesses from the UAE, Zest Equity is an online platform for VC investment management from the UAE, and Erad, which is based in Saudi Arabia, provides working capital to online businesses.<\/p>\n

\"April
April 2025 investments in MENA, Source: Wamda, May 2025<\/figcaption><\/figure>\n

 <\/p>\n

Featured image credit: edited from freepik<\/a><\/em><\/p>\n

The post UAE and Saudi Arabia Lead MENA VC Increase; Fintech Remains Top Focus<\/a> appeared first on Fintechnews Middle East<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Venture capital (VC) investment in the Middle East and North Africa (MENA) continues to rebound this year, driven by a rise in smaller funding rounds, strong investor focus on Saudi Arabia and the United Arab Emirates (UAE), and sustained support for fintech. According to new data from Magnitt, a financial data platform focused on emerging […]<\/p>\n

The post UAE and Saudi Arabia Lead MENA VC Increase; Fintech Remains Top Focus<\/a> appeared first on Fintechnews Middle East<\/a>.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[206,207,208,200,173,209],"tags":[],"class_list":["post-12571","post","type-post","status-publish","format-standard","hentry","category-dubai","category-fintech-funding","category-middle-east-and-north-africa-mena","category-saudi-arabia","category-saudia-arabia","category-venture-capital-vc"],"_links":{"self":[{"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/posts\/12571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/comments?post=12571"}],"version-history":[{"count":1,"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/posts\/12571\/revisions"}],"predecessor-version":[{"id":12572,"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/posts\/12571\/revisions\/12572"}],"wp:attachment":[{"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/media?parent=12571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/categories?post=12571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mena-fintech.org\/demo\/wp-json\/wp\/v2\/tags?post=12571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}