Startups in the Middle East and North Africa (MENA) raised US$180 million in funding over the past week, highlighting growing investor interest in fintech, health tech, food tech, and SaaS.

Saudi Arabia and the UAE led the funding activities, reinforcing their roles as innovation hubs in the region.

Notable funding rounds include Saudi fintech firm Erad raising US$16 million, UAE-based Fuze securing US$12.2 million, and Saudi subscription platform Techrar raising US$1.6 million.

IMENA Group raised US$135 million in a pre-IPO round, while Saudi health tech startup Tuba raised US$8 million.

Other highlights include STV’s US$100 million Shariah-compliant fund and UAE-based Zest Equity’s US$4.3 million raise.

🔗 Source: Arab News

🧠 Food for thought

1️⃣ MENA’s funding patterns reveal a resilient ecosystem despite volatility

The recent $180 million funding blitz follows a distinct pattern of volatility that characterizes the MENA startup ecosystem.

In March 2025, regional startup funding dropped 76% to $127.5 million, yet the first quarter still totaled an impressive $1.5 billion, a 244% increase from Q1 2024 1.

This funding volatility isn’t new; historical data reveals significant month-to-month fluctuations with February 2025 seeing $494 million (a 371% monthly increase) before March’s dramatic decline 2.

Despite these sharp swings, the region shows remarkable resilience. Saudi Arabia secured $839 million across 21 deals in Q1 2025, while the UAE consistently maintained its position as the second-largest funding destination 3.

These patterns demonstrate how the ecosystem has matured to weather short-term fluctuations while maintaining long-term growth trajectories, particularly as government initiatives increasingly support venture capital activity.

2️⃣ Fintech maintains sectoral dominance despite regional shifts

Fintech continues to dominate MENA’s startup landscape, though with interesting regional variations.

In 2024, fintech startups raised $700 million, capturing 30% of total regional funding and processing over $240 billion in transactions 4.