In the first quarter of 2025, tech startups in the UAE raised an impressive total of $872 million, marking an 865% increase compared to $90.5 million in the same quarter last year.

Dubai-based tech firms were the primary beneficiaries, securing 96% of all funding, which reinforces Dubai's position as a leading venture capital hub in the region.

The surge in funding was largely driven by late-stage investments, which alone accounted for $760 million raised, reflecting a staggering 660% increase from $100 million in the previous quarter.

The enterprise applications sector emerged as the leader in funding, attracting $688.1 million, representing a 664% increase from $90.1 million in Q4 2024.

Additionally, the retail sector raised $171.5 million, a 134% increase from $127.6 million in the previous quarter and an astounding 13,092% rise from just $1.3 million in Q1 2024.

Conversely, seed-stage funding saw a significant decline, dropping to $23.4 million in Q1 2025, which is down 77% from $100 million in Q4 2024.

Early-stage investments also experienced a slight decrease, totaling $89 million, though this still represents a substantial 202% increase from $29.5 million in Q1 2024.

Notably, Micropolis was the only company to go public during this quarter, and there were no new unicorns created in Q1 2025, Q4 2024, or Q1 2024.

Leading the investment scene were 500 Global, Wamda Capital, and Middle East Venture Partners, while Oraseya Capital and Plus VC spearheaded seed-stage investments.

In terms of valuations, Tabby's worth surpassed $3.3 billion, and Vista Global's funding round was notably led by RRJ Capital.