Riyadh – Sharikat Mubasher: The Middle East and North Africa (MENA) region witnessed a strong start to 2025, recording over $690 million in venture capital (VC) investments across 137 equity deals in the first quarter, marking a 60% year-on-year increase.

According to a recent report by Digital Digest, Saudi Arabia emerged as the region’s top destination for venture funding, attracting approximately $348 million, accounting for 50% of total capital deployed, as reported by Al Arabiya. The United Arab Emirates followed with around $285 million (41%), while Egypt secured $44 million.

Among the standout deals of the quarter was Saudi-based Tabby, the “buy now, pay later” platform, which raised $160 million, marking the largest round in the region. It was followed by UAE-based FLOW48, a financing platform for small and medium enterprises, which secured $69 million. AppliedAI, also based in the UAE, came third with $55 million raised to support its work in automating precision banking operations.

Other notable fundraises included Saudi startup Rize, a “rent now, pay later” platform, which raised $35 million, and UAE-based NymCard, a payment solutions provider, which attracted $33 million.

Saudi Arabia’s rise is underpinned by its Vision 2030 economic transformation strategy, improved regulatory frameworks, and a wave of promising fintech and B2B SaaS startups gaining traction across the region. The Kingdom's increasing focus on innovation and digital entrepreneurship continues to draw both regional and international investor interest.

Meanwhile, the UAE remains a central player in the MENA startup landscape, maintaining its momentum in supporting ventures in key sectors such as financial technology and artificial intelligence. As competition intensifies, both countries appear poised to shape the region’s next phase of tech-driven growth.