After a record-breaking September, investment activity across MENA startups slowed in October, with total funding falling to US$784.9 million across 43 deals, down 77% month-on-month from September’s US$3.5 billion.
Despite the decline, the figure represents a 395% year-on-year increase, indicating continued investor interest in the region’s tech sector.
Debt financing remained the dominant trend.
Four debt deals accounted for 72% of total funding, worth US$567.8 million, while equity and other instruments collectively raised US$217 million.
The data reflects a growing reliance on debt-backed growth, particularly among late-stage and asset-heavy startups.
The UAE emerged as the most funded ecosystem in October, securing US$615.7 million across 15 deals, largely driven by Property Finder’s US$525 million debt round.
Saudi Arabia followed with US$119.3 million raised through the same number of transactions, signalling a shift in investor focus back to the Emirates after a Saudi-led third quarter.
Egyptian startups raised US$33.3 million through five deals, surpassing their combined Q3 total of US$22.3 million, while Morocco secured US$12.3 million from three rounds.
Proptech became the top-funded sector, raising US$526 million, primarily due to Property Finder’s round.
SaaS startups raised US$60 million, and a single gametech deal accounted for US$41.6 million.
Fintech, which had dominated funding in previous months, fell to ninth place by value with US$12.5 million across seven rounds, though it remained the most active sector by number of deals.
Late-stage investment slowed, with only one Series B round (US$50 million) recorded in October.
Early-stage startups were more prominent, with 32 deals from grants to Series A rounds totalling US$95.2 million, reflecting ongoing investor appetite for seed and early-stage opportunities.
B2C startups led by funding, raising US$594.7 million across nine rounds, compared with US$166 million raised by 28 B2B startups.
Eight startups operated hybrid models combining consumer and enterprise offerings.
Funding disparities persisted, with male-led startups receiving 93% of total funding.
Female-founded startups raised US$4.5 million across three rounds, while mixed-gender founding teams secured US$51 million.
Comparing October to September may be misleading, as September’s figures were boosted by large debt-driven megadeals, particularly from BNPL fintech players.
October’s results suggest a more sustainable pace of investment.
Steady early-stage activity and Egypt’s resurgence indicate the MENA startup ecosystem is entering the fourth quarter with healthy momentum, positioning 2025 for a record year in regional tech investment.
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