The MENA startup ecosystem continued its upward momentum in May, raising a total of $289 million across 44 deals, signaling a 25% jump from April and a modest 2% increase year-on-year.
At the forefront of this regional surge is Egypt, which reclaimed its place as the region’s most funded ecosystem, thanks in large part to Nawy’s landmark $75 million round, one of the largest in the region this year. This headline deal was followed by strong performances from seven other Egyptian startups, which collectively brought in an additional $50 million, marking the country’s busiest investment month since July 2024.
The UAE maintained strong momentum with $86.7 million across 14 deals, while Saudi Arabia secured the third spot with $69 million through 15 transactions, underscoring the Kingdom’s sustained push to diversify its economy through tech and venture investment.
In a surprising return, Kuwait re-entered the regional spotlight, with two startups raising $6 million in combined funding—its strongest showing in over a year and a signal of growing investor confidence in smaller Gulf markets.
Notably, 91% of May’s total funding came through equity investments, indicating a strong appetite for long-term growth bets over short-term debt instruments.
As the region heads into the second half of the year, investor interest appears to be consolidating around real estate tech, fintech, and AI-enabled platforms, with Egypt positioning itself as a serious contender in all three.
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