MENA Startup Funding Falls to $228 Million in November 2025, a 71% MoM Decline
On December 8, 2025, Wamda published its latest monthly barometer, revealing a significant slowdown in investment in Middle East and North Africa (MENA) startups. In November, only $228 million was raised, compared to $784.9 million in October. According to Wamda, only 35 startups secured funding throughout the month. Compared to the same period last year, the decline stands at 12%. Wamda attributes this decline to a consolidation phase in the market, with investors rebalancing their portfolios after a particularly dynamic year.
Saudi Arabia Leads the Way
More than half of the funds raised came from a single debt financing transaction by Erad, propelling Saudi Arabia to the top of the regional ranking. Out of 14 transactions, the Kingdom captured $176.3 million, accounting for more than three-quarters of the capital invested in November.
Investment Remains Concentrated in Five Countries
After Saudi Arabia, the United Arab Emirates (UAE) ranked second with $49 million distributed across 14 transactions. Egypt had a quiet month, with only $1.12 million raised across four deals, while Morocco raised $1.1 million across two operations. Oman recorded only one undisclosed transaction. Outside of these markets, investment activity was virtually non-existent.
Fintech Regains Top Spot
In November, the fintech sector regained its position as the top-funded sector in the region, totaling $142.9 million across nine transactions. E-commerce, although active, remained far behind with $24.5 million raised across six rounds, while proptech, which led in October, fell to third place with only $18.9 million from three startups. According to the study, this trend reflects a highly selective market, favoring models that generate revenue quickly and utility solutions over long-term investments. Fintech thus retains its structural appeal, while consumer-oriented sectors progress more slowly.
Debt Dominates the Market
During the same month, debt dominated the market, totaling over $125 million thanks to a single major operation. The rest of the capital was almost exclusively directed towards early-stage startups, with no late-stage funding recorded. "This silence from the mature segment illustrates investors' caution in the face of adjusting valuations and a slower investment pace," Wamda explains in its study.
Business Models: B2B Dominates
Business-to-business (B2B) startups dominated the market in November, raising $197.1 million and concentrating the majority of funds across 20 companies. In contrast, business-to-consumer (B2C) startups lagged behind, with only $22.2 million raised by nine companies. The remaining funding was split between hybrid models.
Funding Gap Between Men and Women Persists
The funding gap between men and women persists: startups led by men captured 97% of the capital raised in November, while mixed or female founding teams shared the remaining 3%.
November: A Deceptive Calm in the Startup Market
After a year of record fundraising and sustained investment from sovereign and foreign funds, the startup market took a pause in November. Fewer transactions, limited late-stage funding, and the dominance of a single debt operation may give the impression of a slowdown. However, analysts view this as a strategic breath: investors are putting their capital on reserve, ready to return stronger in 2026.
Attention Turns to Artificial Intelligence
Attention is now turning to artificial intelligence and dependent sectors, where mega-rounds are already anticipated. This quiet month resembles less a warning signal than a prelude to a new acceleration cycle.
