Tech startups in the UAE secured a remarkable total of $872 million in funding during the first quarter of 2025. This marks an incredible 865 percent increase from the $90.5 million raised in the same quarter of 2024, as well as a substantial 194 percent rise compared to the $297 million raised in the fourth quarter of 2024.

The significant rise in funding indicates a shift in capital deployment patterns within the UAE’s tech sector. According to the latest Q1 2025 UAE Tech Funding Report from Tracxn, the country experienced a notable rebound in venture funding during this quarter. This rebound was characterized by an influx of late-stage capital and an increase in mega deals worth over $100 million.

Late-stage funding played a crucial role in this surge, with $760 million raised in Q1 2025, representing a remarkable 660 percent increase over the $100 million raised in Q4 2024. In contrast, seed-stage funding totaled $23.4 million in Q1 2025, reflecting a significant decline of 77 percent from $100 million in Q4 2024 and a 62 percent drop from $61 million in Q1 2024. Early-stage investments amounted to $89 million in Q1 2025, a modest decline of 8 percent from the $96.5 million raised in Q4 2024, but a notable increase of 202 percent from the $29.5 million raised in Q1 2024.

In Q1 2025, there were two funding rounds exceeding $100 million, compared to one in Q4 2024 and none in Q1 2024. Notable companies like Tabby and Vista Global secured over $100 million in this quarter. Tabby raised $160 million in a Series E round led by Blue Pool Capital, which valued the company at over $3.3 billion. Vista Global, on the other hand, obtained $600 million in a late-stage round led by RRJ Capital.

The report also noted that Micropolis was the only company to go public in Q1 2025, with no unicorns created during that quarter or the previous two quarters. Additionally, there were six acquisitions within UAE tech companies in Q1 2025, consistent with the number recorded in Q1 2024. The highest valued acquisition was that of Cartlow by Basatne, followed by the acquisition of HotCold Studio by Grandstores.

Dubai-based tech firms dominated the funding landscape, accounting for 96 percent of all funding in the UAE during Q1 2025, solidifying the city’s position as a leader in attracting venture capital. Abu Dhabi followed in a distant second place. Major investors included 500 Global, Wamda Capital, and Middle East Venture Partners, while Oraseya Capital, Plus VC, and Endeavor were the top seed-stage investors in this quarter. Despite the decline in seed-stage investments, Dubai’s capital attraction and increased acquisitions highlight the growing maturity of the region’s tech sector.