Saudi Arabia has decisively reclaimed its position as the premier destination for startup financing in the Middle East and North Africa, driven by a monumental surge in fintech investment and later-stage deals. According to a new report from Wamda, Saudi tech startups raised a staggering US$5 billion in 2025, marking a 400% year-over-year increase from US$1 billion in 2024.
This record-breaking figure accounts for 67% of the region’s total startup funding, which reached US$7.5 billion last year. The Kingdom now leads MENA by a wide margin, sitting well ahead of the second-ranked United Arab Emirates, which attracted US$2 billion, or 27% of the region’s total capital.
Fintech Megadeals Fuel the Surge
The fintech sector was the undisputed engine of growth within the Saudi ecosystem. Fintech startups in the Kingdom secured a total of US$3.7 billion, capturing an impressive 74% of all startup financing in the country. This dominance was powered by several mega-deals raised by established ventures.
Leading the charge was Buy Now, Pay Later (BNPL) specialist Tamara, which secured a massive US$2.4 billion asset-backed facility. Debt crowdfunding platform Lendo also raised a significant US$740 million across two financing deals. Other major rounds included BNPL provider Tabby’s US$160 million Series E, embedded finance provider Hala’s US$157 million Series B, and embedded finance platform Erad’s US$125 million credit deal.
A Resurgent MENA Investment Landscape
The boom in Saudi Arabia mirrored a broader rebound for the entire MENA region, which saw tech investments surge by 226% year-over-year in 2025. The most notable trend was the dramatic rise of debt financing, which saw a more than twelve-fold increase and accounted for over half of all capital deployed.
Equity-led investments also showed robust health, growing 75% YoY and indicating a broad-based expansion. Investor appetite was heavily skewed towards later-stage companies, highlighted by 17 Series B rounds and Tabby’s significant Series E round.
Regional VCs Lead the Charge
Local and regional investors remained the most active participants in the ecosystem, engaging in 413 transactions, which represents 64% of the total deal count.
The most active firms were predominantly Saudi-based, underscoring the strength of the domestic venture capital scene. Sanabil 500, a partnership between Saudi’s Sanabil Investments and US-based 500 Global, and Merak Capital each closed 22 deals. They were followed by UAE-based Plus VC with 17 deals and Saudi’s Raed Ventures with 12 deals.
About Wamda
Wamda is a platform of integrated programs that aims to accelerate entrepreneurship ecosystems throughout the MENA region. It is a multi-stage, sector-agnostic venture capital firm that invests in high-growth technology and tech-enabled startups across MENA. Alongside its investment activities, Wamda provides a startup market research platform and community-focused programming to foster innovation.
Source: Fintech News Middle East
