GCC Startups Secure $4.1 Billion in Private Funding, an 8-Fold Leap Led by Saudi Arabia

A recent report from Stride Ventures reveals that the private funding market for startups in GCC countries saw an unprecedented boom in 2025. Funding soared to $4.1 billion, a huge jump from just $500 million in 2024. This shows more than an 8-fold growth in just one year, highlighting a rapid shift towards structured finance and institutional credit tools in the region. The report also showed that Saudi Arabia clearly led this growth, securing about $3.9 billion of the total private funding in the Gulf. The UAE came in second with $211 million in funding, followed by Bahrain with approximately $22 million. These funds are aimed at supporting startups through various growth stages, right up to pre-IPO.

Private Funding Outpaces Venture Capital

Stride Ventures launched the GCC edition of its "Global Private Finance 2026: Startup and Growth Finance Perspective" report. This report tracks the growing shift of private funding from a supporting tool to a key player in the startup funding ecosystem. According to the report, GCC companies are increasingly relying on non-dilutive funding tools to finance expansion, acquisitions, grow their lending portfolios, and support digital platforms. This comes as business models evolve and there's a growing need for more flexible funding sources. This reflects a fundamental change in the funding structure within the GCC startup ecosystem. Private funding reached $4.1 billion, actually surpassing venture capital investments, which stood at $3.3 billion in 2025. This is out of a total of $7.4 billion invested in startups across the region. This shift indicates that structured credit is moving from its traditional role as a complementary funding tool to a primary driver supporting company expansion and accelerating growth across various sectors.

Saudi Arabia Leads the Market, Fintech Dominates

The report links the strong growth in the private funding market to several key factors. These include the availability of liquidity backed by sovereign wealth funds, an evolving regulatory environment, the continuous expansion of the fintech sector, and government policies that support entrepreneurship and economic growth. Prominent investment institutions also played a significant role in supporting the ecosystem. These include Saudi Arabia's Public Investment Fund (PIF), Jada Fund of Funds, Sanabil Investments, as well as Mubadala and ADQ Holding in the UAE. Fariha Ansari Javid, Partner and Head of GCC and Global Capital Formation at Stride Ventures, explained that the region's private funding market has moved past the experimental and exploratory phase into a stage of maturity and institutional confidence. She added that what's really striking isn't just the deal sizes or the involvement of major sovereign wealth funds. It's also how credit tools are now entering the earlier stages of a company's lifecycle, especially in the fintech sector and asset-backed models. She emphasized that this shows an evolution in funding structures and a greater reliance on more organized and disciplined tools. She also mentioned that the company aims to reach $500 million in assets under management in the Gulf region by the end of 2028.

Multi-Billion Dollar Deals Lead the Way

The report highlighted some of the largest deals seen in the region recently. Tamara led the pack with $2.4 billion in funding, followed by Lendo with $740 million, and Diem with approximately $400 million. Other notable deals included Credible X with $100 million, Kitopi with $50 million, Okta with $20 million, and Erad with a $33 million deal. When it comes to sectors, Fintech maintained its position as the biggest beneficiary of private funding, capturing about 95.5% of total funding, close to $3.9 billion. Other sectors also showed growing presence, including Agri-tech, Prop-tech, Software-as-a-Service (SaaS), and Logistics. This strong focus on Fintech reflects the ability of companies in this sector to access institutional credit funding sources early in their growth, often moving beyond traditional equity-based funding. The report also showed that asset-backed financing and structured credit have become the most common forms of private funding in the region. These tools are increasingly used to finance lending portfolios, accounts receivable, and asset-related expansion plans, rather than just traditional leveraged financing. The "Global Private Finance 2026" report covers markets in India, the UK, Europe, and GCC countries. It offers a comparative look at the evolution of private debt markets and growth financing across different geographies and company development stages. Stride Ventures is a global platform specializing in venture debt and growth financing. It has eight offices in India, the Gulf countries, and Southeast Asia, along with advisory activities in the UK. The company manages seven investment funds denominated in Indian Rupees, US Dollars, and British Pounds. It has helped provide over $1.6 billion in credit financing globally and partners with around 200 high-growth companies across various sectors. In the Gulf region, Stride Ventures continues to expand its presence through its fund registered in Abu Dhabi Global Market. This is supported by Jada Fund of Funds, which is part of Saudi Arabia's Public Investment Fund, along with a strategic partnership with SAB Invest.