The startup sector in the Middle East and North Africa (MENA) region is entering the first quarter of 2025 with robust momentum, highlighted by strategic mergers, high-value investments, and significant international expansions across various industries.
From groundbreaking fintech initiatives to dynamic shifts in the food and beverage industry, the MENA startup scene is quickly gaining prominence on the global stage. These developments demonstrate the region’s evolving startup ecosystem and its growing role in the global business landscape.
Nayla Finance Secures $4 Million to Revolutionize SME Financing in Saudi Arabia
Riyadh-based fintech company Nayla Finance has successfully raised $4 million in seed funding to address Saudi Arabia’s significant financing gap for small and medium-sized enterprises (SMEs). Led by Sanabil Venture Studio by Stryber, this investment will enable Nayla to bridge the $30 billion financing gap in the kingdom’s SME sector. 
The funding includes $2.7 million earmarked specifically for micro-business debt financing, allowing Nayla to use artificial intelligence and alternative data to develop an innovative credit scoring system for small businesses, particularly in the food and beverage, e-commerce, and retail sectors.
Co-founder and CEO Shaqran Alyahya stated, “We are developing financial solutions designed specifically for the needs of Saudi businesses, empowering them with the resources they need to grow.” Khalid Naili, co-founder and Chief Risk Officer, added, “By utilizing technology and alternative data, we are redefining creditworthiness and unlocking access to financing for businesses that drive the Saudi economy.”
Epik Foods Expands in GCC with $15 Million Acquisition of Sauce Capital
Epik Foods, based in the UAE, has made a major move to solidify its position in the Gulf Cooperation Council’s (GCC) food and beverage sector by acquiring Sauce Capital, an Abu Dhabi-based company. The $15 million deal, supported by Ruya Private Capital, consolidates 75 brands under Epik’s umbrella, making it one of the largest food and beverage operators in the MENA region.
This acquisition boosts Epik’s presence in Saudi Arabia, leveraging Sauce Capital’s established operations in the Kingdom. The combined entity now operates across 50 locations in the UAE, Saudi Arabia, and Oman, offering quick-service restaurants, digital food brands, meal kits, and catering services.
NKN Media Raises $9.5 Million for International Expansion
NKN Media, headquartered in Dubai, has raised 35 million Emirati dirhams ($9.5 million) as part of its plans for aggressive international expansion. With an additional 50 million dirhams set to be raised, the funding will fuel the company’s goal of extending its footprint globally.
NKN Media is expanding its flagship Dubai Property Expo to major international markets such as London, Turkey, New York, and Moscow. Additionally, the company will launch new initiatives, including the Ultimate Realty Awards, the third season of Icons of the UAE, and the Majlis Premium startup fundraising forum later this year.
CEO Abdul Majid Khan emphasized the company’s focus on scaling, stating, “Our rapid growth demonstrates the increasing demand for quality media experiences. As we venture into new markets and media sectors, our commitment remains to deliver content that drives business success.”
EHC Investment Acquires Al-Fanar Gas Group to Strengthen UAE’s Energy Sector
In a landmark deal in the UAE’s energy industry, EHC Investment, through its subsidiary Emirates International Gas (EIG), has acquired Al-Fanar Gas Group, the largest gas distributor and maintenance provider in Abu Dhabi. This acquisition will further solidify EHC’s presence in the energy market and contribute to the UAE’s goals of modernizing energy infrastructure.
The combined expertise of Al-Fanar Gas Group’s 30 years of experience and EIG’s resources positions the entity as a leader in gas distribution and infrastructure services. Ali Al-Gebely, Managing Director and Board Member of EHC Investment, remarked, “This acquisition allows us to unlock new growth opportunities and contribute to the UAE’s energy goals by providing innovative solutions to meet the evolving needs of our clients.”
This deal aligns with the UAE Energy Strategy’s vision for sustainable energy and enhanced operational efficiency in the nation’s energy sector.
