Startup funding across the Middle East and North Africa went down to $785 million in October 2025, according to Wamda and MAGNiTT. This was a 77% drop from September’s $3.5 billion. Even though the number was smaller, it was 395% higher than the same month last year.
Debt deals carried most of the total. Four such deals raised $568 million, which made up 72% of all funding. Equity and other forms of capital reached $217 million. The figures showed that many startups are leaning on debt to expand, especially those that are large or hold assets.
The difference between September and October is linked to one-off megadeals in September. The October data is seen as a return to a more regular pace after a record-breaking month earlier in the year.
Which Countries Saw The Most Activity?
The United Arab Emirates led the region, bringing in $616 million across 15 deals. Property Finder drove most of this total through its $525 million debt round. That single deal made the UAE the month’s clear leader.
Saudi Arabia came second, raising $119 million from 15 deals. Although this was much lower than in September, it still showed consistent investor interest.
Egypt saw a noticeable comeback. Startups there brought in $33 million through five deals, up from $22 million collected across 22 deals in the third quarter. Morocco also held steady for a second month, securing $12 million from three funding rounds.
The UAE continues to be the strongest hub in the region, while Egypt’s recovery added new energy to North Africa’s startup scene.
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Which Sectors Drew The Most Funding?
Proptech took the top spot in October, largely because of Property Finder’s large round. The sector raised $526 million in total, overtaking fintech, which had long dominated the rankings.
SaaS companies followed with $60 million raised. A single gametech deal brought in $41.6 million. Fintech went down to ninth place in terms of value, collecting $12.5 million through seven deals. Even so, it stayed the busiest sector based on the number of transactions.
The month showed growing interest across more specific areas of technology. Proptech’s success lifted overall numbers, while smaller SaaS and gametech firms also attracted investor attention.
What Did Early And Late-Stage Activity Look Like?
Early-stage startups took most of the attention in October. There were 32 deals worth $95 million, covering rounds from grants to Series A. Only one later-stage round happened, a $50 million Series B.
This pattern means that investors are more drawn to early-stage firms where prices are still moderate and long-term rewards may be higher. It also suggested that larger rounds are becoming rarer, with founders choosing smaller, faster investments instead.
B2C startups performed strongly, raising $595 million across nine rounds. In comparison, 28 B2B startups brought in $166 million. Eight companies worked under mixed models, serving both consumers and businesses. The numbers suggested more investor interest in products and services that target end users directly.
How Large Is The Gender Gap In Funding?
Male-led startups continued to take nearly all the capital, collecting 93% of total funding in October. Female-founded firms secured $4.5 million across three deals. Teams with both male and female founders attracted $51 million.
The uneven distribution of funding between male and female founders clearly has not improved. The small share going to women-led startups points to slow progress in diversifying investment flows.
What Does This Mean For The Regional Startup Scene?
October’s results came after a record September, so a fall in numbers was expected. The drop does not point to weakness but to a correction after unusually large deals earlier in the year.
Debt funding kept the month’s numbers high, while early-stage deals and Egypt’s recovery gave a sense of steady activity across the region. The MENA tech scene ended October on a calmer but healthy note, which means that 2025 could still close as a strong year for regional startup growth.
