MENA fintech funding at record high

It was a record 1H for MENA’s fintech sector, with both transactions and funding surging despite overall weaker global venture flows, according to a Magnitt report (pdf) and accompanying press release (pdf). The region logged 93 transactions, up 69% y-o-y and reversing two years of declines, while funding tripled to USD 598 mn — its strongest half on record.

UAE + Saudi drove the rebound: The UAE led on volume with 39 transactions (+63% y-o-y) and USD 240 mn raised (+227%), overtaking Singapore as the top emerging-market hub by transaction count. Saudi Arabia followed with 29 transactions (+142%) but led on total funding value, having raised USD 274 mn (+276%) on the back of Tabby’s USD 160 mn mega-round. Together, the two markets accounted for nearly three quarters of regional activity and 86% of funding.

Egypt also gained traction, closing 12 agreements (+50%) and attracting USD 76 mn (+101%), marking its third consecutive half of growth.

Total agreement volume was up 8% across the wider emerging venture markets (EVMs), with total EVM fintech investments rising 4% y-o-y to USD 1.7 bn across 182 transactions. Singapore remained the largest funding hub with USD 699 mn, despite a slight 2% dip. South Africa ranked behind the top three, while Côte d’Ivoire sat at the bottom with USD 17 mn.

By sub-sector: Payment solutions dominated in the region, attracting USD 232 mn (+178% y-o-y) and nearly 40% of funding — anchored by Tabby’s investment round and smaller rounds for Stitch.sa, Enza, and Octane. Lending grew the fastest, with funding up 500% to USD 83 mn and transaction count nearly tripling. Banking infrastructure along with personal finance and wealth management saw solid growth, while the cryptocurrency sub-index posted a 14% dip.

Investor interest extended across stages: Non-mega funding rose 36% y-o-y to USD 1.2 bn across EVMs, offsetting a 37% drop in mega rounds. Early-stage activity fueled much of the UAE’s rise. International participation hit a five-year high, while M&A activity picked up — with six fintech acquisitions in 1H 2025 compared to eight in all of 2024.

Looking ahead: “With record investor participation, rising international interest, and a steady flow of early-stage [transactions], momentum is building across the ecosystem, and it shows no likely signs of slowing down,” said Magnitt’s Farah El Nahlawi.

MARKETS THIS MORNING-

Asia-Pacific markets are once again firmly in the green in early morning trading, following the release of inflation data in China, which showed prices dropping 0.4% in August. Markets in Asia are also getting a shot in the arm as Asian companies that are part of Apple’s supply chain — including Foxconn and Samsung Electronics — are trading up after the iPhone maker released new iPhone models yesterday.

Futures suggest a similarly positive open for Wall Street later today, as investors keep their eyes on fresh US inflation figures set to be released today and tomorrow.

THE CLOSING BELL: TADAWUL-

The TASI gained 0.3% yesterday on turnover of SAR 4.3 bn. The index declined 12.5% YTD.

In the green: Chubb (+6.2%), Cenomi Centers (+4.7%) and Obeikan Glass (+4.1%).

In the red: Riyadh Cement (-5.5%), Al Andalus Property (-4.5%) and Tourism Enterprise (-3.3%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.6% yesterday on turnover of SAR 35.3 mn. The index declined 19.9% YTD.

In the green: Mulkia (+7.8%), Natural Gas Distribution Co. (+6.9%) and Wsm (+6.8%).

In the red: Naas Petrol (-9.7%), Al Ashghal Al Moysra (-7.0%) and Asas Makeen (-6.8%).