FATF Asset Recovery Highlights Saudi Fintech Surge in MENA Funding

• Saudi Arabia captured 64% of MENA startup funding in H1 2025. According to GCC Business Watch.
• Fintech dominated regional investments with $969 million raised. According to GCC Business Watch.
• Total funding jumped 134% year-on-year across MENA. According to GCC Business Watch.
• Debt financing played a significant role in the expansion. According to GCC Business Watch.

Saudi Arabia accounted for nearly two-thirds of MENA startup funding during early 2025. The Kingdom secured $1.34 billion across six months, setting a regional record. This capital influx underscores Riyadh's emergence as a hub for venture activity. Sovereign initiatives and global investor interest drew substantial capital into Saudi startups.

Why Did Saudi Arabia Dominate Regional Startup Investment in 2025?

Government-backed programs drew substantial capital into Saudi startups. State support and maturing domestic venture firms amplified deal flow. International investors targeted the Kingdom's growing innovation ecosystem. These factors positioned Saudi Arabia ahead of neighbors like the UAE and Egypt.

How Did Fintech Drive MENA's Record Capital Inflows?

Fintech attracted $969 million through 20 regional transactions. That sector accounted for over 72% of Saudi Arabia's total funding. The surge highlights confidence in digital finance solutions across MENA. E-commerce ventures also demonstrated resilience despite economic pressures. Debt instruments supplemented traditional equity investments. According to GCC Business Watch.

What Challenges Remain Despite the Funding Boom?

Female-founded startups received disproportionately low investment. This gender gap persists despite overall capital growth. Egypt maintained activity despite macroeconomic headwinds. The UAE retained its position as a key player alongside Saudi Arabia. Regional diversification beyond fintech remains limited currently. According to GCC Business Watch.