Saudi Arabia has seen a significant rebound in startup funding, attracting $860 million in venture capital during the first half of 2025. This marks a substantial increase from the $750 million in funding recorded for the entire year of 2024. The kingdom secured 56 percent of all venture capital deployed in the MENA region during this period, sealing 114 deals.
This is a 31 percent increase compared to the previous year. E-commerce was the standout sector, securing $306 million in funding. This represents 36 percent of the total capital deployed in the first half of 2025.
Fintech led in the number of transactions, clocking in 30 deals. This accounted for 26 percent of the overall venture capital activity. A notable highlight in July includes Saudi grocery delivery company and a Dubai-based startup each raising $250 million.
This positions them as the Gulf’s newest unicorns. The Gulf region now boasts nine unicorns, with six in the UAE and three in Saudi Arabia. The funding surge reflects a buoyant investment climate in Saudi Arabia.
The kingdom continues its efforts to diversify its economy and foster innovation. The Dubai International Financial Centre (DIFC) recorded a significant increase in the number of hedge funds establishing operations.
Saudi startups attract major funding
This underscores Dubai’s growing appeal as a global asset management center. A total of 1,081 new companies registered within the DIFC in the first six months of 2025. Space42, an Abu Dhabi-listed space tech company, secured new funding for the development of the Al Yah 4 and Al Yah 5 satellites.
The company signed a $696 million Export Credit Agency-backed financing facility. Total assets under management of tokenized real-world assets (RWAs) could reach $600 billion by 2030. This could potentially represent 10 percent of global GDP.
Saudi Arabia has invested in the Professional Triathletes Organization through Surj. Surj is a sports-focused subsidiary of the $1.15 trillion Public Investment Fund. It contributed to a $40 million funding round.
Uber may soon introduce driverless taxis in Riyadh. AiDriver is currently testing the technology under the supervision of a safety driver. Dubai-listed Union Properties plans to sell a real estate project in its MotorCity master development.
This is to settle legacy debts as part of a multi-year recovery strategy. This robust activity underscores the dynamism and resilience of the MENA region’s startup ecosystem. It marks Saudi Arabia as a significant player in the global venture capital landscape.
