AI
Saudi Arabia
UAE
EgyptHas the Game Changed? Fintech Dominates Startup Funding in MENA’s Q1 2025
2 min
The fintech sector secured over $1 billion in funding during Q1 2025 in the MENA region.
Total startup investments reached $1.
5 billion, according to a report by Wamda.
Sectors like insurtech and e-commerce attracted less funding, while interest in SaaS declined for the second consecutive month.
Investors are favoring practical tech solutions that directly impact consumers’ daily lives.
The data indicates a clear shift in investment trends, with increased competition expected in fintech and proptech sectors.
The MENA region kicked off 2025 with strong investment momentum, recording $1.5 billion in total funding across 179 startup deals, according to a report by Wamda. While the overall landscape showed broad diversity, Fintech stood out as the undisputed leader, attracting $1 billion through 36 deals.
Fintech Takes the Lead… But Where’s the Money Flowing?
Beyond fintech, several other sectors drew notable interest:
- Insurtech: $55M across only 2 deals, signaling large-ticket investments.
- Proptech: $41.6M from 7 deals
- E-commerce: $40M across 12 deals
- Martech & Gametech: $34.7M and $29.8M respectively
- AI: $29.5M from 17 deals, showing increasing investor confidence
- Healthtech: $20.9M from 15 deals
- SaaS: Despite 24 deals, only raised $16.6M – the second consecutive quarter of declining investor interest
Emerging Sectors in the Shadows – Will Their Time Come?
The report also highlighted dozens of smaller or emerging sectors such as:
- Edtech: $28M (6 deals)
- Logistics: $28.5M (5 deals)
- Cleantech: $15M (5 deals)
- Web3, HRtech, Superapp, Regtech, Agritech, Mediatech, Foodtech, and others still lag behind in terms of funding, with some not surpassing the $1M mark.
Investors Are Betting on Direct Impact
The numbers reveal a strong investor preference for sectors offering practical, immediate impact—like digital payments, personal finance, and smart insurance—over abstract or backend-heavy models like SaaS.
What’s Next?
If this trend continues, we can expect intensified competition in fintech, proptech, and AI. Meanwhile, other verticals may need to rethink their business models or innovate aggressively to secure future funding.
