Startup Funding in MENA Down 77% in October From September

Following a record-breaking September, the regional startup investment scene experienced a predictable cooldown in October. Total funding dropped to $784.9 million across 43 deals - a significant 77% dip from September’s $3.5 billion peak. However, this figure is far from a negative sign; it still represents a massive 395% year-on-year increase, demonstrating that sustained investor confidence in the region’s tech landscape remains strong. The core dynamic of October’s funding was shaped by debt financing. Just four debt deals accounted for 72% of total funding, valued at $567.8 million, highlighting that debt-backed growth is now a primary fuel source, particularly for late-stage and asset-heavy startups.

The UAE successfully reclaimed the title of the most funded ecosystem, securing $615.7 million across 15 deals. This result was almost entirely powered by Property Finder’s $525 million debt round, signalling a clear rotation of investor attention back to the Emirates following a Saudi-led Q3. Saudi Arabia followed at a distant second with $119.3 million raised through an identical number of transactions. Perhaps the most notable shift came from Egypt, which staged a comeback by raising $33.3 million across five deals. This single-month total surpassed the entire combined funding of Q3, when 22 startups collectively secured just $22.3 million. Meanwhile, Morocco maintained stable momentum, securing $12.3 million from three rounds. In a rare reversal, Proptech surprisingly emerged as the top-funded sector, raising $526 million, almost exclusively thanks to the Property Finder deal. SaaS startups ranked second with $60 million, followed by a major single Gametech deal worth $41.6 million. Interestingly, fintech - long the region’s leader in capital - fell to ninth place by value, raising just $12.5 million across seven rounds, though it still remains the most active sector in terms of deal count.

While late-stage activity was muted - only one Series B round of $50 million was recorded - early-stage startups dominated the deal count. A total of 32 deals, spanning everything from grants to Series A, accounted for $95.2 million. This focus on seed and early investments underscores a continued appetite for foundational funding. In addition, the month saw a strong favouring of B2C startups by value ($594.7 million across nine rounds) compared to B2B startups ($166 million across 28 rounds).

Despite the overall ecosystem growth, disparities in capital allocation widened once again. Male-led startups captured 93% of total funding, while female-founded startups secured a meager $4.5 million across three rounds, reinforcing the persistent gender imbalance in the MENA funding landscape. Comparing October to September risks misinterpretation; the earlier month's results were inflated by exceptional, debt-driven megadeals. October’s figures, by contrast, reflect a far more sustainable rhythm of growth. The consistent activity across early-stage rounds and the strong performance from Egypt signal a solid trajectory, positioning the region to likely close 2025 as a record year for regional tech investment.