MENA’s growth was driven by both local and international investors. Image source: Dubai Media Office / Facebook
Venture capital in the Middle East and North Africa (MENA) region surged to over $3 billion in funding in 2025, a 74% year-on-year increase, despite investor activity moderating across emerging markets, according to new data from MAGNiTT.
While deal counts declined in Africa and Southeast Asia, MENA bucked the global trend, recording a 5% rise in deals among its ten most active investors.
Investor mix
MENA’s growth was driven by both local and international investors. Venture capital firms made up 70% of the top 10 most active investors by deal volume, with local players dominating deal counts in MENA and Southeast Asia, while Africa remained more reliant on international capital. Across all emerging venture markets, Antler, 500 Global, and +VC ranked among the most active investors in 2025.
Saudi Arabia stood out as a regional hub, with heightened investor participation and increased deal activity. F6 Ventures and Merak Capital ranked among the country’s most active investors, reflecting the Kingdom’s growing influence in the MENA venture ecosystem. The UAE also retained its position as a key center for capital deployment.
MAGNiTT’s FY 2025 State of Venture Capital report shows MENA’s resilience against a challenging global backdrop, including trade shocks, policy uncertainty, and volatile markets. Despite a cautious global environment, MENA recorded its strongest funding recovery ever, with capital scaling faster than deal activity.
Sector focus
Investment trends also highlighted sector focus, with FinTech, enterprise software, and artificial intelligence consolidating as the region’s most investable verticals. International investors increasingly led growth- and late-stage rounds, while regional capital continued to anchor early-stage deals.
Mergers and acquisitions (M&A) activity showed early signs of recovery, as corporate buyers and local companies returned after two quiet years, signaling improving liquidity conditions heading into 2026.
The report is intended for VCs, institutional investors, policymakers, founders, LPs, and advisors tracking emerging venture markets. It provides insights on funding concentration, deal sizing, exit trends, and evolving investor behavior across MENA, Africa, and Southeast Asia.
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