Startup investments across the Middle East, Africa, and the Arab region recorded a significant month-on-month increase in July, rising by 106.26%, or approximately $1.7 billion, compared to the previous month.
According to entArabi’s monthly investment report, startups raised a total of $3.3 billion through 20 investment deals, including 16 disclosed transactions, spanning nine key sectors, led by fintech, artificial intelligence, gaming, e-commerce, healthtech, mobility and logistics, insurtech, and hospitality technology.
Leading Investment Sectors
During July, investment activity was concentrated across five major sectors:
- Artificial Intelligence
- Fintech
- Mobility & Logistics
- Insurtech
- E-commerce
- Sector Performance
Artificial Intelligence ranked as the largest investment sector, attracting $3.124 billion across five deals, accounting for 95.25% of total startup funding during the month.
Fintech came second with five investments worth $82.5 million, representing 2.52% of total funding.
The Mobility & Logistics sector ranked third with $10 million raised through one transaction, followed by Insurtech in fourth place after recording $8 million through a single deal.
UAE Dominates Regional Investment Activity
The United Arab Emirates captured the largest share of startup funding in July, attracting $3.024 billion across six investment deals, including four disclosed transactions, representing 96.8% of total regional investments.
The UAE also dominated AI investments, accounting for more than $3.02 billion across four transactions. It additionally recorded two deals—one disclosed and one undisclosed—in the fintech, blockchain, and climate technology sectors.
Saudi Arabia Records Diverse Deal Flow
Saudi Arabia ranked second, securing $93.5 million across seven investment deals, including five disclosed transactions, representing 2.8% of total regional funding.
The Kingdom’s deals covered fintech, gaming, insurtech, artificial intelligence, agritech, and hospitality technology.
Other Regional Markets
Syria ranked third after attracting $10.1 million through two transactions in the e-commerce and mobility sectors.
Egypt came fourth with two investment deals totaling $4.25 million, covering the e-commerce and healthtech sectors.
Key Deals
- UAE-based BlueFive Capital led a nearly $3 billion funding round for China’s Kling AI, a developer of AI-powered video generation technology.
- Saudi fintech Fina secured $75 million in Shariah-compliant financing from Fasanara Capital to expand embedded finance solutions for SMEs.
- UAE-based Whiteshield raised $15 million, led by Ruya Partners, to expand sovereign AI solutions for governments.
- Syria’s Ministry of Communications signed a $10 million investment agreement to launch the Labby application and accelerate digital transformation.
- Saudi insurtech startup DESAISIV launched an $8 million growth funding round to accelerate AI-powered insurance solutions.
- UAE-based Bundle raised $5.5 million in a Pre-Seed round to launch its global Web3 rewards platform.
- UAE-based AVELIN AI secured $3.7 million in a Pre-Seed round to develop sovereign AI solutions.
- Morocco’s ORA Technologies received an additional $2 million as part of its $10 million Series A funding round.
- Saudi game developer Ash Games raised $1.5 million in a Seed round to accelerate game development and international expansion.
- Egypt’s Reme-D secured $1.45 million in a Pre-Series A round led by Anara Impact Capital to expand molecular diagnostics services.
- Maalexi closed an oversubscribed funding round led by The Co-operative Insurance Company and Global Ventures ahead of its planned Series A round (undisclosed amount).
- UAE-based Planno received a strategic investment from Incubayt Investments to accelerate the expansion of its climate technology platform (undisclosed amount).
- Uvera closed its Seed funding round with participation from Morgan Stanley Inclusive & Sustainable Ventures, LAB7 by aramco, and Core Vision Investment to support food waste reduction and food safety technologies (undisclosed amount).
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