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Sunday, Jul 13, 2025

Saudi Arabia's Dominance in MENA Startup Activity: New Unicorn Emerges in UAE Amid Mixed Funding Trends

Saudi Arabia's Dominance in MENA Startup Activity: New Unicorn Emerges in UAE Amid Mixed Funding Trends

Riyadh and the UAE witness significant startup developments as Saudi Arabia maintains its lead while the UAE sees a new unicorn emerge.

Riyadh, Saudi Arabia: The Middle East and North Africa (MENA) region's startup landscape continues to evolve with notable activities in Saudi Arabia and the United Arab Emirates. Here's an overview of recent events shaping this dynamic industry.TruKKer Secures $15 Million in FundingHeadquartered in Saudi Arabia, digital freight platform TruKKer has secured a significant investment of $15 million through Ruya Partners' Ruya Private Capital I fund. The capital injection will facilitate the company's expansion across regional markets, enhance its AI-enabled logistics platform, and solidify its presence in the freight tech sector.TruKKer, founded in 2016, operates in nine countries with a network of over 60,000 transporters serving more than 1,200 enterprise clients through its real-time freight marketplace. This funding round follows a $100 million pre-IPO investment in 2022 led by Investcorp, demonstrating sustained investor confidence in the platform's growth potential across the Middle East and North Africa.Tarmeez Capital Expands with Strategic FundingSaudi fintech startup Tarmeez Capital has secured strategic financing. Led by Tali Ventures, the corporate venture capital arm of stc group, this funding aims to democratize sukuk issuance through a digital platform that promises to process transactions at seven times the speed of traditional methods. The platform supports over 180,000 users and is focused on enhancing access to Islamic financial instruments. The funds will be utilized to expand retail sukuk offerings in alignment with Saudi Vision 2030.Rekaz Secures $5 Million for SaaS ExpansionRiyadh-based software company Rekaz has secured a seed funding of $5 million to enhance its Software-as-a-Service (SaaS) platform for service-based small and medium-sized businesses. The round was led by COTU Ventures, with participation from several investors including Shorooq Partners. Founded in 2017, Rekaz provides scheduling, subscription management, payments, and customer engagement tools for services like gyms, salons, clinics, and home services. The investment will bolster AI functionality, expand its market reach within the GCC, and accelerate product development.Jahez Group Acquires Stake in Qatari E-commerce FirmSaudi-listed Jahez Group has signed a definitive agreement to acquire a 76.56% stake in Snoonu, a leading Qatari e-commerce and delivery company for $245 million. This acquisition marks Jahez's entry into the Qatari market, aiming to enhance operational synergies across logistics, on-demand delivery, and e-commerce within the GCC.Huspy Raises $59 Million to Expand in Europe and Saudi ArabiaUAE and Spain-based property tech platform Huspy has raised $59 million in a series B funding led by Balderton Capital. The company plans to expand into six new Spanish cities and launch operations in Saudi Arabia in 2025, aiming to offer high commissions and automation in real estate transactions.XPANCEO Achieves Unicorn Status with $250 Million RaiseUAE-based deep tech firm XPANCEO has secured $250 million at a valuation of $1.35 billion. Led by Opportunity Venture, the company is developing multifunctional smart contact lenses integrating augmented reality, health monitoring, night vision, and optical zoom. The funding will accelerate commercialization efforts, global expansion, and regulatory testing.BlueFive Capital Valued at $120 Million Post Founding RoundUAE investment firm BlueFive Capital has completed its Founding Shareholders Circle round, achieving a valuation of $120 million with 25 founding shareholders including GCC royal family members and international investors. The company aims to connect institutional capital with high-growth markets across London, Abu Dhabi, Riyadh, Singapore, and Beijing.icogz Raises $1.4 Million for AI-Driven BI PlatformUAE-based business intelligence startup icogz has secured $1.4 million in pre-seed funding from UAE and Indian angel investors. The company uses proprietary algorithms to deliver actionable insights through its AI engine, Aryabot. The capital will be used to develop the platform's AI capabilities and scale market efforts.BioSapien Extends Pre-Series A Round to Over $8 MillionHealth tech startup BioSapien has extended its pre-series A funding round to over $8 million, led by Globivest. Founded in 2018, BioSapien is developing a drug delivery platform that minimizes systemic side effects. The new capital will support research and development and regulatory expansion.Nawy Acquires Majority Stake in SmartCrowdEgypt-based real estate tech firm Nawy has acquired a majority stake in Dubai's SmartCrowd, a regulated fractional property investment platform. This acquisition marks Nawy's entry into the GCC market and expands its service offerings to include fractional ownership.MENA Startup Funding Drops 82% in June Amid Investor CautionAccording to Wamda's monthly report, startup funding across MENA fell sharply in June, declining 82% month-on-month to $52 million across 37 deals. While the UAE reclaimed top funding spot with $37 million, overall figures reflect cautious investor sentiment amid global economic uncertainty, with a notable shift towards debt instruments.

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