Funding in UAE's tech sector reaches a staggering $1 billion during the first half of 2025, exceeding the investments made in both Japan and Sweden.
The UAE tech ecosystem experienced a significant boost in the first half of 2025, with a surge in late-stage funding and strong performances across various sectors. This growth, fuelled by large-scale capital injections from sovereign wealth funds and a robust early-stage venture capital market, has positioned the UAE as a regional hub for tech investments.
Late-stage funding in the UAE amounted to $817 million in the first half of 2025, representing a staggering 583% increase compared to the second half of 2024. Major deals, such as Tabby's $160 million Series E round and Vista Global's $600 million private equity round, underscored investors' preference for startups with proven commercial viability.
The sectors that attracted the most investment in the UAE during the first half of 2025 include Artificial Intelligence (AI), Fintech, Enterprise Software, Health Tech, Logistics and Real Estate Technology, and Retail.
AI companies accounted for a significant share of UAE tech funding and are central to the ecosystem's growth, despite a recent dip in AI funding in the broader MENA region. Fintech saw continued strong investment, with firms like Tabby (buy-now-pay-later) and payment platforms such as PayFort receiving funding. The enterprise applications sector saw a total funding of $728 million, while the retail sector saw a total funding of $172 million.
The UAE raised a total of $1 billion during the first half of 2025, marking an increase of 133% compared to the second half of 2024. Dubai-based tech firms accounted for 93% of all funding seen by tech companies across the UAE. The surge in funding also led to notable acquisitions, such as Everdome, Gulf Craft, and Property Monitor.
However, no unicorn was created in the first half of 2025, or in the second half of 2024 or the first half of 2024. Only one company, Micropolis, went public in the first half of 2025. Tech companies in the UAE saw nine acquisitions in the first half of 2025, a 10% decrease compared to 10 acquisitions in both the second half of 2024 and the first half of 2024.
STV emerged as the top late-stage investor in the UAE tech ecosystem for the first half of 2025, while Oraseya Capital, Plus VC, and Endeavor were the top seed stage investors. e&, Flourish, and MoreThan Capital Advisors were the top early-stage investors.
The UAE tech ecosystem's significant half-yearly recovery placed it among the most active tech ecosystems in the Middle East and North Africa (MENA) region during the first half of 2025, demonstrating its resilience and potential for continued growth.
[1] Venture Capital Post. (2025). UAE Tech Ecosystem Witnesses Significant Recovery in H1 2025. [online] Available at: https://venturecapitalpost.com/uae-tech-ecosystem-witnesses-significant-recovery-in-h1-2025/
[2] Mena Bytes. (2025). UAE Tech Funding Soars in H1 2025, Led by Late-Stage Investments. [online] Available at: https://menabytes.com/uae-tech-funding-soars-in-h1-2025-led-by-late-stage-investments/
[3] Arabian Business. (2025). UAE Tech Ecosystem: A Regional Hub for Late-Stage Investments in 2025. [online] Available at: https://www.arabianbusiness.com/technology/416986-uae-tech-ecosystem-a-regional-hub-for-late-stage-investments-in-2025
[4] Gulf News. (2025). UAE Tech Ecosystem: A Look at the Numbers in H1 2025. [online] Available at: https://gulfnews.com/business/technology/uae-tech-ecosystem-a-look-at-the-numbers-in-h1-2025-1.1660784921659
- The surge in late-stage funding in the UAE, amounting to $817 million in the first half of 2025, has positioned the region as a hub for business investments, particularly in sectors like AI, Fintech, and Enterprise Software.
- Notable startups, such as Tabby and Vista Global, attracted substantial investments, highlighting investors' interest in businesses with proven commercial viability in the UAE's burgeoning tech ecosystem.
- The robust early-stage venture capital market in the UAE, along with large-scale capital injections from sovereign wealth funds, has supported the growth of technology sectors, positioning the region as a regional hub for tech investments.
