Tracxn has released its UAE Tech H1 2025 Report, providing a detailed overview of the country’s technology funding landscape during the first half of the year.
The report highlights a strong rebound in investment activity compared to H2 2024, although overall funding remains below the levels recorded in H1 2024.
Late-stage funding was the main driver of this recovery, with notable performances across enterprise applications, fintech, and retail sectors.
Total funding in H1 2025 reached US$1.0 billion, marking a 133% increase from the US$438 million raised in H2 2024.
However, this represents a 43% decline compared to the US$1.8 billion recorded in H1 2024.
Despite the year-on-year drop, the half-yearly recovery positions the UAE as one of the most active tech ecosystems in the MENA region during this period.
Seed-stage funding fell sharply to US$32.7 million, down 74% from US$125 million in H2 2024 and 71% from US$111 million in H1 2024.
Early-stage funding reached US$167 million, down 13% from H2 2024 (US$193 million) but up 4% compared to H1 2024 (US$160 million).
Late-stage investment saw a substantial rise to US$817 million, up 583% from H2 2024 (US$120 million), though still 46% lower than H1 2024 (US$1.5 billion).
Among sectors, enterprise applications led with US$728 million in funding, up 543% from H2 2024 (US$113 million) but down 56% from H1 2024 (US$1.7 billion).
Fintech followed with US$286 million, up 47% from H2 2024 (US$195 million) and up 276% from H1 2024 (US$76.2 million).
The retail sector secured US$172 million, a 20% increase from H2 2024 (US$144 million) and a 275% rise from H1 2024 (US$46 million).
Two companies secured US$100M+ funding rounds in H1 2025, compared to one in each of the previous two half-year periods.
Vista Global raised US$600 million in a private equity round, while Tabby raised US$160 million in a Series E round.
These major deals were concentrated in the enterprise applications, retail, and fintech sectors.
Micropolis was the only UAE tech company to go public during this period.
No new unicorns were created in H1 2025, nor in the two preceding half-year periods.
There were nine acquisitions involving UAE tech firms in H1 2025, a slight decline from the ten deals recorded in both H2 2024 and H1 2024.
Notable transactions included the acquisition of Everdome by Hokoworld, Gulf Craft by Saronic, and Property Monitor by Dubizzle Group.
Dubai-based companies continued to dominate the UAE’s tech funding landscape, accounting for 93% of total funding in H1 2025.
Abu Dhabi followed at a distant second.
The top investors overall in H1 2025 included 500 Global, Wamda Capital, and Middle East Venture Partners. Leading seed-stage investors were Oraseya Capital, Plus VC, and Endeavor.
Top early-stage investors included e&, Flourish, and MoreThan Capital Advisors.
Saudi Arabia-based STV emerged as the most active late-stage investor, adding one company to its portfolio during the period.
In summary, the UAE tech ecosystem experienced a robust recovery in H1 2025, largely propelled by a surge in late-stage investment and strong sectoral performances.
While seed funding contracted significantly, the presence of multiple large deals and continued investor interest reaffirmed the UAE’s position as a key player in the global tech investment landscape.
Featured image credit: Tracxn
