Rabat – Startup investment across the Middle East and North Africa closed 2025 on a weaker note, with December figures pointing to a clear slowdown and a highly uneven regional distribution. Morocco, once again, appeared among the least funded markets.
According to data published by Wamda, startups in the MENA region raised $171 million through 44 funding rounds in December 2025.
The total marked a sharp reversal from previous momentum. Funding volumes dropped by 24% compared to November and stood 38% lower than the level recorded in December 2024.
Capital allocation remained heavily concentrated in three markets. Saudi Arabia, Egypt, and the UAE secured a combined $163.7 million, equivalent to more than 95% of all funds raised during the month.
Saudi Arabia alone accounted for 67% of the total, while Egypt attracted roughly 16% and the UAE close to 12%.
By contrast, the rest of the region shared a modest $7.5 million. This group included Morocco, Algeria, Kuwait, and Bahrain.
Although Wamda did not disclose the precise amount raised by Moroccan startups, the overall breakdown tells a persistent challenge for local founders to access large investment tickets, particularly outside the region’s dominant hubs.
Sector shifts redraw the investment map
December also brought notable changes at the sector level. Cybersecurity emerged as the top destination for capital, with $63.4 million directed toward four startups. SaaS solutions followed with $47.9 million, while deeptech ranked third at $23 million.
Fintech, which long served as a pillar of the regional startup scene, fell sharply in the rankings. The sector raised just $3.9 million, which placed it seventh among funded industries for the month.
Deal activity largely favored early-stage ventures. Thirty-five startups secured a combined $35.9 million, which reflected investor caution and a preference for limited exposure.
Business-to-business models dominated funding flows, with $154.7 million allocated to B2B startups, compared to only $6.3 million for consumer-focused companies.
The report also pointed to a persistent gender imbalance. Startups founded by women raised only $116,000 in December, while mixed-gender teams attracted around $5 million.
Male-founded startups continued to receive the overwhelming share of capital, a pattern that showed little sign of change.
As 2026 begins, the December figures point to a more selective investment climate across MENA, where capital gravitates toward a narrow set of markets and sectors, leaving ecosystems such as Morocco’s under persistent pressure.
