Investment activity across the MENA startup ecosystem slowed significantly in November 2025, with 35 startups raising a combined $227.8 million. That marks a steep drop from the $784.9 million recorded in October and a 12% decline compared to November last year. The pullback reflects a market in consolidation mode as funds rebalance portfolios after an unusually active year, as reported by Wamda.

More than half of November’s total was driven by a single debt-backed transaction from erad, which propelled Saudi Arabia to the top of the regional leaderboard. The Kingdom attracted $176.3 million across 14 deals, accounting for more than three-quarters of all capital deployed during the month.

Capital Concentrates in Five Markets
Despite activity spanning 35 startups, funding was tightly concentrated in just five countries. Following Saudi Arabia’s dominant lead, the UAE secured $49 million across 14 deals. Egypt recorded $1.12 million from four transactions, Morocco logged $1.1 million through two deals, and Oman registered one undisclosed round. Beyond these markets, investment activity was minimal, underscoring growing selectivity as the year draws to a close.

Fintech Rebounds on Debt Momentum
Sector-wise, fintech reclaimed its lead, raising $142.9 million across nine deals, largely driven by the same debt-heavy transaction that defined the month. E-commerce followed with $24.5 million across six rounds, while proptech, which topped October’s charts, slipped to third with $18.9 million raised by three startups. The mix highlights investor preference for revenue-linked and utility-driven models, with fintech maintaining structural appeal as consumer-facing sectors grow more cautiously.

Early-Stage Equity Dominates, Late-Stage Absent
Debt overshadowed equity in November, with more than $125 million raised through a single transaction. The remainder was channelled almost entirely into early-stage startups, while no late-stage rounds were recorded—signalling investor caution amid valuation resets. B2B startups captured the lion’s share, with 20 companies raising $197.1 million. B2C ventures lagged, securing just $22.2 million, with the rest split across hybrid models.

Gender Gap Widens
Further Male-led startups absorbed 97% of capital raised in November, leaving only a marginal share for female-led and mixed-gender teams. The disparity remains structural rather than cyclical, showing no signs of narrowing.

Signals for 2026
While November marked the quietest month of the quarter, the slowdown does not indicate structural weakness. Instead, it reflects recalibration after a year dominated by sovereign-backed and foreign-led investments. The absence of late-stage equity, the dominance of debt, and Saudi Arabia’s concentration suggest investors are preserving firepower for 2026.

The coming year is expected to be shaped by mega rounds in AI and adjacent industries. November appears less a warning sign than a pause before the next acceleration cycle, according to Wamda.

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