UAE and MENA Start-up Ecosystem: Strategic Growth in Funding and Mentorship
Investment in initial-stage start-ups is on the rise across the UAE as government-led initiatives supporting the start-up ecosystem lead to more interest in this space. "In the past three years, I have seen UAE’s start-up funding scene growing significantly in terms of the size of start-ups and the number of companies we see in the market," said Varis Sayed, CEO of Fincasa. The UAE’s fast-growing start-up ecosystem is what encouraged Fincasa to invest in start-ups as the entire ecosystem is getting bigger and broader.
New Mentoring and Funding Initiatives
Dubai-based Fincasa and IMT Business School ink agreement to mentor and fund the country’s budding entrepreneurs. The agreement, signed mid-May, will create a joint venture between Fincasa and IMT Business School where students’ start-up ideas are developed to a level where they are executable. At that point, the participating start-ups are shortlisted and the selected ones – which have "an execution plan and a compelling story" – are funded for their early stage development by Fincasa. "Recent history has shown us there are plenty of capable young talents in the country; they just need the right platform and guidance and we come at that stage to deliver this," said Sayed.
Regional Market Performance: September 2025
Startup investment in the Middle East and North Africa (MENA) hit a record high in September 2025, soaring to $3.5 billion across 74 deals, according to Wamda data. This represents a 914% month-on-month and 1105% year-on-year leap. Saudi Arabia once again topped the regional charts, with 25 startups raising a combined $2.7 billion. The UAE ranked second, with 26 startups collectively raising $704.3 million, reflecting sustained investor appetite in Dubai and Abu Dhabi’s more mature startup ecosystem.
Regional Investment Highlights (Q3 2025)
The following table summarizes the distribution of funding across the region during this period:
| Country | Total Funding Raised | Number of Deals |
|---|---|---|
| Saudi Arabia | $3.2 billion | 62 |
| UAE | $1.2 billion | 59 |
| Egypt | $22.3 million | Not specified |
| Iraq | $16.5 million | Not specified |
| Morocco | $14.5 million | Not specified |
Sector Trends and Early-Stage Dominance
Fintech remained the top-funded sector, with $3 billion channelled into 41 startups. Proptech followed, almost entirely powered by Property Finder’s $525 million round, while e-commerce entered the top three with $265 million spread over 14 deals. Despite the headline numbers being dominated by late-stage and debt deals, early-stage startups represented the majority of deal flow; 55 startups raised $129.4 million. By comparison, later-stage startups closed just four rounds but attracted $699 million in total.
The Role of Government Support and Alternative Financing
There is great support for start-ups from a lot of government initiatives and new angel investors and VCs have come in with a lot of money. In mid-May, Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum launched ‘Dubai Next’, a digital platform that allows ambitious youth and innovators to secure the required funding to launch their projects. The initiative will encourage the use of crowdfunding to finance a new business venture.
Additional factors supporting the ecosystem include:
- Crowdfunding awareness: It did not exist in this region for a long time, but now we have crowdfunding here which is good for the economy and the entrepreneur alike.
- New Visas: We also have the remote working and digital nomad visas which will encourage a lot of entrepreneurs to come work from this region.
- Fintech Events: Much of the momentum stemmed from Money20/20, the fintech sector’s headline event, where 15 deals were announced.
While the region’s start-ups typically relied on funding from friends and family, the number and awareness level of angel investors is on the rise, making it easier for entrepreneurs to approach them for funding. For the first time, B2B2C startups outperformed all other models, reflecting a broader trend across MENA where hybrid business models are emerging as an efficient way to monetise demand.
