On June 14, 2025, startup ecosystems across the Middle East and North Africa (MENA) lit up with a string of funding announcements, marking a significant moment for the region’s growing innovation economy. From cleantech breakthroughs in the Gulf to AI and proptech deals in Egypt and the UAE, the activity spanned industries and borders—offering strong signals that MENA’s tech scene is rapidly maturing and drawing global attention.
Among the biggest highlights was UAE-based AI startup LocAI, which closed an impressive $150 million round. Founded in 2023 in Abu Dhabi, LocAI focuses on building regionally-adapted large language models and practical AI tools that can integrate into government and enterprise workflows. This early-stage round is one of the largest for a deep-tech company in the region and reflects how MENA—particularly the UAE—is becoming a serious contender in the global AI race.
In parallel, the cleantech sector also saw momentum. The region, long associated with oil wealth, is now drawing investments in clean and sustainable technologies. Saudi Arabia, through funds like Wa’ed Ventures and government-led innovation programs, is backing startups focused on renewable energy, sustainable manufacturing, and waste-to-energy projects. This reflects a wider trend: Gulf states are aligning with their national visions (like Vision 2030) to diversify economically and reduce environmental impact.
AI investments are also picking up speed regionally, even though fintech continues to dominate in terms of volume. In May 2025, AI startups across MENA attracted $25 million, while fintech pulled in $86.5 million, according to a report by Wamda. However, the AI landscape is poised for acceleration—especially with initiatives like the Google AI First Accelerator, a 12-week, equity-free program launched earlier this year for startups in MENA and Turkey. Applications close on June 16, making this week crucial for AI-focused founders.
The Google accelerator, which provides cloud credits, mentorship, and investor access, has already boosted visibility for participants like LocAI. According to Abdul Rahman Al Thehaiban, Managing Director of Google Cloud in MENA and Turkey, the program is designed to “empower homegrown AI talent to build scalable, region-first solutions.”
But the action on June 14 wasn’t limited to AI. Egypt’s Nawy, a proptech startup simplifying real estate buying, announced a $75 million round. The deal helped Egypt reclaim the top spot in MENA’s startup funding chart for May, with the country attracting $125 million across eight deals. The move signals Egypt’s rebound after a slower April and highlights the continued investor interest in its urban tech and real estate sectors.
In fintech, Qashio, a UAE startup offering corporate expense management tools, secured $19.8 million in a round led by Rocketship VC. The company plans to expand into Saudi Arabia—where demand for business spend platforms is rising thanks to a surge in SME activity and digital transformation mandates.
Also notable was Reachware, a Saudi-based iPaaS (Integration Platform as a Service) startup, which raised $3 million to support its automation stack used in banking and enterprise environments. In the same week, Saudi healthtech startup Tuba closed $8 million, further underscoring the diversity of sectors now attracting capital.
These developments come amid an already strong second quarter for MENA startups. In May 2025, the region recorded $289 million in total startup funding across 44 deals—marking a 25% month-on-month increase and a modest 2% year-over-year rise, according to Digital Digest. The growth is encouraging given the volatility seen earlier in the year. For instance, March funding dipped by over 76% compared to February, before recovering sharply in April.
Despite these fluctuations, the overall funding trend shows resilience. While fintech continues to lead in deal count and volume, sectors like proptech, cleantech, and AI are now claiming more significant shares of the pie. Importantly, deals are no longer concentrated in a handful of markets. Cross-border investments between Egypt, Saudi Arabia, and the UAE are increasing, and new startup corridors are forming between cities like Riyadh, Cairo, Abu Dhabi, and Dubai.
Venture capital firms are taking notice. India-based Stride Ventures recently announced its expansion into the GCC region, aiming to triple its assets under management by 2026. The firm believes MENA’s venture debt market will grow at 54% annually—four times the global average. Similarly, Saudi Aramco’s venture arm, Wa’ed Ventures, and other sovereign-backed funds continue to co-lead rounds, adding local strength to the capital stack.
Samantha Evans, Managing Director at Startup Genome for MENA, recently described the region as “no longer peripheral” in global innovation discussions. “The Gulf has built regulatory maturity, infrastructure, and capital depth. Now it’s moving into deep tech and cleantech, areas once considered too risky here.”
For founders in the region, these developments point to a more open runway. Programs like Google’s AI First Accelerator offer crucial early-stage resources, while cross-border investment opportunities open doors to larger, integrated markets. For investors, the message is clear: MENA is no longer just a high-risk frontier—it’s a launchpad for globally scalable startups.
The flurry of announcements on June 14 isn’t just a one-off—it’s part of a broader narrative. MENA is evolving. From deep-tech to digital payments, from desert-grown cleantech to AI-powered cities, the region is pushing past its traditional boundaries and rewriting what startup growth looks like.
And if this week is any indication, the second half of 2025 is going to be even more interesting.