MENA Startup Funding Declines in December 2025, Totaling $171.5 Million
In December 2025, MENA startups secured $171.5 million in funding, reflecting a 38% year-on-year decline and a 24% drop from November. This marked a significant decline, with a 38% year-on-year decrease, and a 24% drop compared to November 2025. A total of 44 startups successfully raised funds during the month.
In December 2025, startups across the Middle East and North Africa (MENA) region secured a total of $171.5 million in funding. This marked a significant decline, with a 38% year-on-year decrease, and a 24% drop compared to November 2025. A total of 44 startups successfully raised funds during the month.
Regional Breakdown of Funding
Saudi Arabia emerged as the leading recipient of startup funding within the region, with 17 startups collectively raising $115 million. In Egypt, six rounds of funding resulted in a total of $27.3 million, while 15 transactions in the United Arab Emirates (UAE) brought in $21.4 million. These figures highlight the varying levels of investment activity across the region's key markets.
Sector-Specific Insights
While fintech has typically been a strong performer in the startup ecosystem, it ranked seventh in December 2025, securing $3.9 million. In contrast, business-to-business (B2B) startups dominated the funding landscape, raising $154.7 million across 33 rounds. Consumer-focused startups attracted significantly less interest, with only five startups raising a total of $6.3 million.
Gender Disparities in Funding
The disparity in funding between male-founded and female-founded startups remains a significant issue in the MENA region. Female-founded startups managed to raise a mere $116,000, while startups with mixed-gender teams secured $5 million. This funding gap underscores the continuing challenges faced by female entrepreneurs in accessing capital, as funding tends to favor male-founded startups.
Overall Funding Trends
Debt financing accounted for 12.5% of the total funding in December 2025, reflecting a trend towards diversified funding mechanisms. The selective and uneven nature of startup funding in the MENA region presents both challenges and opportunities for entrepreneurs. Despite the decline observed in December, the year 2025 saw startup funding reach $3 billion, marking the highest level in two years. This overall growth indicates a dynamic, albeit selective, investment landscape within the region.
The data suggests a complex and evolving startup ecosystem in the MENA region, where certain sectors and demographics navigate funding challenges more effectively than others.