Local firms are completing more deals, but foreign backers are upping their participation in the region’s transactions.
Qatar Investment Authority‘s recent move to step up its VC commitments reflects a broader expansion of the Middle East’s startup ecosystem.
Dealmaking in the region over the past decade has grown dramatically from just $500 million invested in 2016 to $5.4 billion last year, according to PitchBook data. Foreign involvement in the Middle East is also on the rise. Almost 85% of deal value in 2025 involved non-domestic firms—the highest percentage to date.
Much of the momentum has been driven by sovereign wealth funds, such as QIA and the Abu Dhabi Investment Authority, which have pursued VC investments to diversify their national economies. Not only are they putting capital directly into local startups and funds, but they are also investing in international companies, providing an incentive to build up the region’s tech hubs.
While foreign investors are increasing their presence in the region, domestic firms are driving the bulk of deal activity, particularly at the earliest stages. Middle Eastern fundraising did drop off last year, but remained well above historical norms in terms of capital raised. The region had a record amount committed to VC vehicles in 2024, leaving managers well-capitalized for fresh investment.
As the region recovers from its post-2022 slump in startup funding, this year is poised to see an acceleration in dealmaking. Here are the 10 most active VC investors in the Middle East since 2021, according to PitchBook data.
