Morocco rises to fourth in MENA startup funding rankings

Monday 18 August 2025 - 08:50

By: Dakir Madiha

Morocco rises to fourth in MENA startup funding rankings

Morocco has solidified its position as a growing player in the Middle East and North Africa (MENA) startup ecosystem, climbing to fourth place in regional funding rankings for July 2025. This advancement puts the North African nation ahead of Egypt, which dropped in rankings due to macroeconomic challenges and currency instability.

The milestone was driven by a $7.5 million funding round for Ora Technologies, a modest sum compared to regional heavyweights yet significant enough to boost Morocco into the top five rankings compiled by Wamda and Digital Digest. This development highlights Morocco’s growing appeal to both regional and international investors, particularly in the technology and innovation sectors.

Record-breaking month for MENA startups

July 2025 marked a breakthrough for startups across the MENA region, with 57 companies raising a total of $783 million—a staggering 1,411% increase from the previous month and more than double the amount recorded in July 2024. Two mega-deals led this surge: e-commerce giant Ninja and deeptech firm XPANCEO, which together accounted for 56% of the total funding.

Saudi Arabia retained the top spot with $396.5 million raised across 16 deals, followed by the UAE with $359 million from 22 startups. Iraq claimed third place through a single $15 million deal for InstaBank, while Morocco secured fourth, and Egypt slipped to fifth, raising only $4 million across seven startups.

Morocco’s growing tech potential

Morocco’s rise reflects its strategic focus on fostering an entrepreneurial ecosystem. The country’s inclusion in the top five underscores its ability to attract investments in high-potential sectors, shifting perceptions from a peripheral market to a key player in the region. With its defense budget reaching $13 billion in 2024, Morocco's broader economic policies and emphasis on innovation are driving this progress.

The Global Startup Ecosystem Index 2025 also ranked Morocco among the top 10 African startup ecosystems, a testament to its emerging role in the continent’s tech landscape. As traditional hubs like Egypt face challenges, Morocco is positioning itself as a reliable and dynamic market for investors seeking long-term opportunities in the MENA region.