At the center of the East, West, North, and South, this region’s common language and shared regional history creates camaraderie amongst young entrepreneurs seeking bottom-up change. Millennials are approaching political and economic unrest with ‘an app for that’ mentality to tackle problems that would otherwise ‘take a generation to fix’.
A Region Built for Crossing Borders
The Middle East and North Africa stretches from Morocco to the Gulf, and its startup culture is shaped by what its countries share. A common language, Arabic, means a product built in Cairo or Amman can reach customers in Riyadh or Dubai without starting from scratch. Shared history and media also mean that founders across the region often know each other’s markets better than outsiders do.
That doesn’t make MENA a single market. Regulations, currencies and payment habits differ sharply from one country to the next, and wealth is spread very unevenly between the Gulf states and the rest of the region. Successful startups usually learn to manage those differences as they expand.
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An “App for That” Generation
The original article described young founders treating political and economic problems as things technology could chip away at. That attitude grew out of a young, connected population that came of age with smartphones and social media, often in economies that didn’t create enough jobs for them.
For many of those founders, starting a company was a way to build something useful without waiting for slow-moving institutions. Ride-hailing, delivery, e-commerce and digital payments took off because they fixed daily frustrations, from unreliable transport to the heavy use of cash.
Careem Proved the Region Could Produce a Giant
The turning point for regional confidence came with Careem, the UAE-based ride-hailing company. Uber completed its $3.1 billion acquisition of Careem in January 2020, with Careem keeping its brand and co-founder Mudassir Sheikha staying on as CEO.
“The journey that we started almost a decade ago to simplify the lives of people in the greater Middle East is far from over,” Sheikha said at the time, according to Wamda. The deal showed investors that a startup founded in the region, for the region, could reach a multibillion-dollar exit.
The Gulf Takes the Lead
Since then, the center of gravity has shifted toward the Gulf, where governments have made startups part of their plans to diversify away from oil. Data firm MAGNiTT reported that MENA venture funding reached $3.8 billion across 688 deals in 2025, a 74% increase in funding from 2024.
Saudi Arabia led the way with $1.72 billion raised across 257 deals, up 145% year on year, and took the top spot for deal activity in MENA for the first time. MAGNiTT linked that rise to government initiatives including Vision 2030. The UAE raised $1.58 billion across 231 deals. Fintech was the biggest driver of funding in the Middle East, attracting $1.04 billion.
MAGNiTT also said the region posted a record $1 billion in “mega deals,” that international investors took a bigger part in growth and late-stage rounds, and that the Middle East outpaced Southeast Asia in deal activity for the first time. For a region that was once seen mainly as a source of capital for startups elsewhere, that’s a notable shift.
North Africa is moving too. Partech’s review of African tech in 2024 found that Egypt saw the fastest-growing equity deal activity on the continent, with deal count up 48% year on year, even as the amount raised fell.
What It Means for Founders
The bottom-up energy the original article described is still part of MENA’s startup culture, but the money now flows heavily from the top down. Government-backed funds, sovereign wealth and national strategies in Saudi Arabia and the UAE are shaping which sectors grow and where companies set up.
For founders, that creates real opportunity, especially in fintech, logistics and AI. It also means paying close attention to local rules, building relationships with government-linked investors, and deciding early whether to start in a large, fast-growing Gulf market or in a lower-cost hub with deep engineering talent and expand from there.
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Frequently Asked Questions
What brings MENA's young entrepreneurs together?
A common language and shared regional history create camaraderie among young founders seeking bottom-up change, many of whom approach political and economic problems with an "app for that" mentality.
Why was the Careem acquisition important for the region?
Uber completed its $3.1 billion acquisition of Careem in January 2020, showing investors that a startup founded in the region, for the region, could reach a multibillion-dollar exit.
How much venture funding did MENA startups raise in 2025?
MAGNiTT reported that MENA venture funding reached $3.8 billion across 688 deals in 2025, a 74% increase in funding from 2024.
Which country led MENA venture activity in 2025?
Saudi Arabia raised $1.72 billion across 257 deals, up 145% year on year, and took the top spot for deal activity in MENA for the first time. The UAE raised $1.58 billion across 231 deals.
How was Egypt's startup scene doing?
Partech found that Egypt had the fastest-growing equity deal activity in Africa in 2024, with deal count up 48% year on year, even as the amount raised fell.