Startup funding across the Middle East and North Africa remained flat year-over-year at $799 million in the first quarter, as regional conflict disrupted investment flows. Saudi venture capital firms are continuing fundraising efforts despite the headwinds.
The stagnant funding figures reflect the impact of escalating tensions in the region, with the Iran conflict creating uncertainty for investors and entrepreneurs alike. However, Saudi Arabian VC firms have not paused their capital-raising activities, signaling confidence in medium-term opportunities.
The $799 million quarterly total matches the prior year's performance, suggesting the market has stabilized at current levels rather than contracting further. Saudi firms remain the most active players, maintaining deployment despite geopolitical risks.
The resilience from Saudi VCs contrasts with broader regional caution. These firms are betting that stability will return and that early deployment now positions them for growth when conditions improve. Other regional investors appear more hesitant, reflecting broader concerns about timing in an unstable environment.
The data underscores how geopolitical factors continue shaping venture capital flows in MENA, where political risk remains a central consideration for both local and international investors.
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