The Arab startup sector is targeting 1.3 million new jobs by 2026, according to a report presented at the 52nd Arab Labour Conference in Cairo.
The conference, attended by labour ministers and representatives of employers and workers from 21 Arab countries, placed startups and digital transformation at the centre of its agenda. The report said MENA startups raised around $2.1B in the first half of 2025, up 134% from the same period a year earlier.
The UAE, Saudi Arabia and Egypt were identified as key markets in the region’s startup growth. UAE startups raised $541M across 114 deals during the period, while Saudi Arabia attracted about $860M and accounted for 56% of regional startup funding. Egyptian startups raised $179M across 52 deals.
Fintech remained the region’s leading investment sector, followed by e-commerce and software-as-a-service. The report also highlighted major challenges, including limited access to formal credit, the startup “valley of death” and a shortage of skills in data analysis, artificial intelligence and cybersecurity.
Recommendations included creating an Arab startup support fund, expanding regulatory sandboxes, aligning regulations across markets and investing in workforce reskilling. The conference also called for stronger support for women founders, who currently receive only 1% to 4% of the region’s venture capital funding.
Source: Youm7
