The UAE continued to attract landmark deals that reinforce its position as the region’s most diversified startup hub as funding across the Middle East and North Africa surged in August.
In August, startups in Mena raised $337.5 million across 47 transactions, up 74 per cent compared with the same period last year, underscoring resilient investor appetite despite a cautious global funding environment. The monthly figure, however, marked a 57 per cent dip from July’s exceptional $783 million, reflecting the market’s natural recalibration after blockbuster rounds.
Saudi Arabia emerged as the frontrunner for the second consecutive month, attracting $166 million through 19 deals, while the UAE secured $154 million across 11 startups. Together, the two Gulf economies accounted for over 94 per cent of total funding, reaffirming their unrivalled dominance in regional venture activity. Egypt, which was once a leading destination for capital, lagged behind with just $14.7 million raised across eight startups, while Morocco held on to its top-four position and Iraq slipped down the table.
Dubai-based Property Finder secured $525 million in a minority stake sale to global private equity heavyweights Permira and Blackstone, in what marks one of the largest proptech transactions in the Middle East. This deal not only underscores investor confidence in the UAE’s digital property ecosystem but also signals growing appetite from international investors to back regional champions with proven scalability.
Other UAE-based ventures also drew significant capital. PRYPCO, a proptech platform founded by Amira Sajwani, completed a pre-Series A round led by General Catalyst. Since its inception in 2022, PRYPCO has facilitated nearly Dh10 billion in mortgage transactions and assisted over 3,000 Golden Visa applications, while pioneering fractional ownership and tokenized real estate investments. The company’s latest funding will accelerate regulatory engagement and expansion across Mena.
In fintech, Abu Dhabi-anchored Metric attracted investment from a consortium including A-typical Ventures, 500 Global, Hub71 and other regional investors. The platform offers small business owners and founders a suite of AI-powered dashboards, forecasting and benchmarking tools that demystify complex financial data. Backed by the capital injection, Metric is now gearing up for GCC-wide expansion from its base in the UAE’s capital, which is fast becoming a magnet for AI-driven startups thanks to government support and the Hub71 ecosystem.
The UAE’s role as a venture capital powerhouse was further reinforced by VentureSouq, which closed its second fintech-focused fund, FinTech Fund II, with participation from Mubadala, Jada Fund of Funds, Saudi Venture Capital Co., and other prominent backers. With more than $250 million in assets under management, VentureSouq has built a track record of backing breakout companies like Tabby, Huspy and Mozn, and is doubling down on opportunities in payments infrastructure, digital banking, alternative credit, and property technology. The establishment of a dedicated fintech fund underlines the UAE’s ambition to cement its role as the regional hub for financial innovation.
According to market experts, while Saudi Arabia is leveraging its mega projects and policy momentum to emerge as a new pole of attraction, the UAE continues to serve as the region’s most established and globally connected innovation hub. “The combination of capital, talent, and supportive frameworks in both economies is reshaping Mena’s entrepreneurial map, and the funding momentum suggests that the Gulf is poised to remain the epicentre of the region’s startup story.”
Sectorally, property technology stole the spotlight, raising $96 million over four deals, reflecting enduring investor confidence in real estate innovation. Fintech recovered momentum after a quieter July, securing $68.3 million across five deals, while construction technology featured prominently with MYCRANE’s $50 million round. The Kingdom’s push into digital entertainment was also evident, with gaming startups raising $12.6 million in Saudi-led investments. The funding mix revealed a tilt toward scale-ups and later-stage ventures, with Series B and Series A rounds together drawing nearly $200 million, while early-stage activity slowed as 31 fledgling startups managed to raise just $22 million.
While Saudi Arabia has become the hottest new magnet for deals in construction, healthtech and gaming — backed by Vision 2030 and mega projects such as Neom and Qiddiya — the UAE continues to showcase its maturity and depth as an ecosystem. Global players are increasingly choosing Dubai and Abu Dhabi as launchpads for regional and international expansion, with AI, fintech, proptech and healthtech leading the charge. TERN Group, a healthcare talent mobility platform co-based in the UK and UAE, raised $24 million in a Series A round led by Notion Capital, with participation from regional and global investors. The platform uses AI to streamline recruitment and certification of medical professionals across 13 countries, positioning itself to scale aggressively across the GCC, Europe and beyond.
Analysts say the UAE’s ecosystem is benefiting from structural advantages, including world-class infrastructure, progressive regulations, deep pools of regional and international capital, and strong government backing for innovation. The country’s Golden Visa programme, streamlined licensing, and dedicated free zones for fintech, AI and life sciences have created a fertile environment for founders. Despite global headwinds in venture capital, the UAE has consistently ranked among the top three emerging markets for startup investment, with venture flows crossing $2 billion in 2024.
The latest funding data suggests a more discerning market, with investors tilting toward scale-ups that offer clear monetization and enterprise-focused solutions. B2B startups dominated in August, raising $180 million across 32 deals, compared with $116.9 million for B2C ventures. At the same time, female founders made encouraging strides: two Saudi startups, Gathern and Phys, raised $72.3 million between them, showing progress in a space still dominated by male-led enterprises.
