MENA’s Digital Gold Rush: The IT Startup Boom No One Saw Coming
Executive Summary
The Middle East and North Africa (MENA) region is no longer just about oil and infrastructure. A new wave of IT startups is reshaping economies, led by visionary founders, institutional investors, and supportive governments. From Cairo to Riyadh to Dubai, the digital transformation is accelerating. The MENA startup ecosystem saw record levels of activity in 2025 — and it’s only the beginning.
What’s Happening Now?
According to a recent Dealroom report, MENA-based IT startups raised more than $3.2 billion in 2025, with over 500 early-stage deals recorded. Saudi Arabia and the UAE led the pack, but Egypt and Morocco are catching up fast.
Key sectors include:
Enterprise SaaS
Fintech & Insurtech
E-commerce platforms
AI and cloud-native services
What’s new:
Government-backed accelerators like Hub71 (UAE), and Monsha’at (Saudi Arabia)
Corporate VC arms of major telecom players and sovereign wealth funds
A growing base of tech-savvy consumers and SMEs across the region
What This Means for Investors
MENA is transforming from an overlooked frontier into a high-momentum digital growth zone. Here’s why investors should pay close attention:
Underpenetrated markets with 70–80% digital white space in B2B sectors
Young, urban, mobile-first populations
Government mandates to diversify away from hydrocarbons
Regional M&A exits increasing, with major acquirers like STC, Aramco, and Mubadala actively buying
As valuations remain lower than in Silicon Valley or Europe, the risk-adjusted ROI potential is massive — especially for early entrants.
What’s Next?
Series B+ deals are increasing: Scale-ups like Tarabut Gateway, Zid, and Hala are drawing attention from global funds.
Cross-border talent platforms are fueling the rise of remote-first MENA startups.
Infrastructure gaps (like cloud/data compliance) are becoming venture opportunities in themselves.
The opportunity? Back the infrastructure and operators of the region’s digital backbone — now, while entry costs are low.
Final Note
We’re actively building our presence across the MENA region and opening our investment pipeline to selected partners interested in IT, aviation tech, and asset-backed scale-ups.
Let’s talk.