UAE-based tech startups raised USD 875 mn in 1Q 2025, marking an 865% y-o-y increase from the USD 90.5 mn raised in 1Q 2024, according to Tracxn’s Q1 2025 UAE Tech Funding Report (pdf). Late-stage funding surged by 660% y-o-y to amount to USD 760 mn. In contrast, seed-stage funding dropped 62% y-o-y to USD 23.4 mn, while early-stage funding saw a 202% y-o-y increase to USD 89 mn.

Which sectors led the charge? Enterprise applications topped the list with USD 688.1 mn in funding, followed by fintech with USD 215.6 mn, and retail with USD 171.5 mn.

Dubai-based tech startups raised USD 839 mn — accounting for 96% of all tech funding in the UAE during the quarter. Abu Dhabi followed with USD 33 mn, accounting for the remaining 4%.

Top investors this quarter included:

  • Overall: 500 Global, Wamda Capital, and Middle East Venture Partners
  • Seed stage: Oraseya Capital, Plus VC, Endeavor
  • Early stage: QED Investors, Tech Invest Com

Vista Global received the lion’s share of funds so far this year after securing a USD 600 mn equity investment, followed by Tabby’s USD 160 mn Series E round led by Blue Pool Capital, which pushed its valuation north of USD 3.3 bn. NymCard landed the third place after securing USD 33 mn in its latest Series B funding round, led by QED Investors.

REMEMBER- The UAE led the Mena region in terms of startup investments in 2024 with USD 1.1 bn across 207 transactions. Fintech was the leading sector for startup investments in the UAE last year, with USD 265 mn in investments, followed by Web3 (USD 258 mn) and proptech (USD 197 mn). The country also led the region last year in the volume of funding rounds, with a total of 188 funding rounds.

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