MENA Startups Soar with $289M Boost in May, Egypt Leads Charge

It's been quite the month for startups across the Middle East and North Africa (MENA). The region’s entrepreneurs have clearly been busy, raking in a healthy $289 million from investors in May 2025—a jump of about 25% compared to April. It even manages a modest 2% increase year-on-year, showing that investor confidence has stayed fairly steady.

Egypt seems to have comfortably reclaimed its crown this time around, with the lion's share of investor attention headed towards the banks of the Nile. Real estate tech company Nawy stood out with an impressive raise of $75 million, and an additional seven Egyptian startups attracted a combined $50 million—a level of activity not seen since last July. Not a bad result at all, especially after quieter months for Egypt’s entrepreneurial scene.

Close behind was the UAE, pulling in $86.7 million across 14 different funding rounds. Saudi Arabia also held its own, securing around $69 million from 15 deals. An interesting comeback worth noting was Kuwait, which reappeared on the investment radar this month. Although often overshadowed by its GCC neighbours, it neatly snached fourth spot with two startups raising $6 million combined.

You might have heard all the chatter about artificial intelligence recently in the Gulf, especially after former President Trump popped by along with some high-profile Silicon Valley AI executives. Saudi Arabia and the UAE both announced significant initiatives designed to boost their local AI ecosystems, which created quite a media frenzy. But interestingly, this hype didn’t quite translate into cash—with AI-focused startups raising only around $25 million across just two deals. Clearly, there’s still a gap between the buzz and actual investor backing.

Meanwhile, fintech remained the region’s darling, attracting $86.5 million through more than a dozen funding rounds. Proptech—which admittedly got a considerable boost from Nawy’s success—secured second place. Mediatech startups weren't completely left behind, taking home about $32 million from a couple of significant deals. WakeCap, a contech startup, impressively pulled in $28 million, showing there's still quite a fascination with construction innovation.

Something noticeable this month was the lack of those big-ticket later-stage investments. Aside from one pre-Series C deal worth $12 million, most rounds focused on early-stage ventures—adding up to a solid $161 million and reflecting continued investor appetite for fresh ideas and youthful companies.

If you’re a regular reader of Arageek, you’ll probably notice that business-to-business (B2B) startups continue to be investor favourites. Last month they attracted $157 million across 29 fundraising rounds, while hybrid business models—which combine B2B and consumer elements—raised around $79 million. In stark contrast, the purely consumer-focused (B2C) segment lagged behind significantly, capturing just over $53 million among nine companies.

Unfortunately, there’s still a visible gender funding gap in the region’s startup scene. Male-founded startups captured an overwhelming 82% of all investments, while startups founded just by women secured a modest 7%. Interestingly, teams with both male and female co-founders attracted around 11%—something funders and the startup community might want to keep an eye on going forward.

All in all, it's heartening to see the regional startup ecosystem continue to bounce along, particularly as Egypt surges back to the forefront and more countries like Kuwait come into focus. Clearly, despite a tough global economic climate, investors still see the potential here in MENA's young, innovative companies—and frankly, we've got plenty of room for optimism.

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