Saudi Arabia dominated Middle East venture capital in 2025 with $1.72 billion in funding and 257 deals, per MAGNiTT’s report, fuelling sports investments like $309 million in fitness amid Vision 2030. This lens raises sportswashing concerns against FIFA’s human rights, labour, and transparency standards for 2034 World Cup hosts, questioning ethical alignment.
Saudi Arabia led the Middle East in venture capital investment last year, attracting $1.72 billion—a 145 per cent increase year-on-year—while recording 257 deals, up 45 per cent, according to MAGNiTT’s annual report on venture capital in emerging markets, as reported by Arab News.
The Kingdom outpaced regional peers, including the UAE with 231 deals (up 1 per cent), as Middle East fundraising reached $3.43 billion (up 89 per cent) and total transactions hit a record 581 (up 13 per cent). MAGNiTT attributed the rebound to late-stage liquidity, diplomatic ties, key events, and rising investor confidence, with a record $1 billion in mega deals narrowing the funding gap with Southeast Asia.
Philip Bahoshy, CEO and founder of MAGNiTT, told Arab News that investor behaviour adapted in 2025, becoming more selective with diligence shifting “away from momentum towards fundamentals, scale, and clear paths to liquidity” amid global uncertainty, geopolitics, trade routes, oil prices, and public market corrections linked to tariff shocks. He noted the GCC as a “long-term home for global venture and private capital investments,” with capital allocation shaped by resilience, policy direction, and local market infrastructure.
Regional and Global Context
MENA venture capital totalled $3.8 billion across 688 deals in 2025, up 74 per cent in funding and 6 per cent in deals, while emerging venture markets (EVMs) saw modest recovery to $9.63 billion (up 0.9 per cent), though deals fell 12 per cent to 1,521—the lowest in seven years—with investors down 15 per cent to 1,564 and exits down 12 per cent to 91. MAGNiTT highlighted a sharp decline in mega deals ($100 million-plus), the weakest since 2016 at 24 per cent of capital.
Southeast Asia funding dropped 29 per cent to $4.08 billion with 446 deals (down 29 per cent), while Africa rose 28 per cent to $1.45 billion despite 298 deals (down 15 per cent). By deal count, Singapore led EVMs with 274 (down 20 per cent), followed by Saudi Arabia at 257 and UAE at 231. The GCC emerged as a “durable destination,” linked to Vision 2030 initiatives boosting sentiment and international participation in growth/late-stage deals.
Sector Breakdown and Sports Funding
Fintech drove Middle East VC with $1.04 billion (up 164 per cent) across 152 deals (up 48 per cent), followed by e-commerce/retail ($494 million), sports and fitness ($309 million), telecoms/communications ($236 million), and enterprise software ($184 million). Fintech also led in Southeast Asia ($1.81 billion) and Africa ($478 million), boosted by events like Money20/20 and Fintech Summit Singapore.
Late-stage rounds dominated MENA, with five mega deals totalling $1.04 billion by Ninja ($254 million, largest by HQ), HALA, Tabby, XPANCEO, and Aialo, involving globals like Wellington Management, Atomico, Atlea Partners, Opportunity Ventures ($250 million deployed), CVC Capital Partners, and Bluepool Capital. +VC led by deal count with 40 transactions.
Exits, AI, and Investor Trends
Middle East exits rose 19 per cent to 32, with UAE topping at 17 M&As; MENA M&A up 41 per cent to 45, 23 by local acquirers, bucking EVM decline to 91. AI funding surged 204 per cent to $817 million, shifting from narrative to active theme. North America, Europe, and Asia deepened presence, drawn by policy consistency and infrastructure, exemplified by US President Donald Trump’s GCC trip, BlackRock’s Abu Dhabi board meeting, Ray Dalio, Brevan Howard, KKR, Brookfield expansions, 9,800 millionaires to Dubai, 600 multinationals in Saudi HQs, and over 100 hedge funds in Dubai per Bloomberg.
Talent and corporate migration reinforced a “feedback loop” for repeat entrepreneurship, though 2026 outlook cautions on geopolitics and debt.
FIFA Human Rights Standards Overview
FIFA’s human rights policy, updated post-Qatar 2022, mandates due diligence on labour rights, non-discrimination, press freedom, and transparency for hosts, including worker protections under heat stress and fair wages. Hosts must align with UN Guiding Principles, with independent audits; failure risks reputational damage, as in complaints over Saudi 2034 bid.
Sports Investments and Sportswashing Concerns
The $309 million in sports/fitness VC directly supports Vision 2030’s hosting of 400 events, per ministry reports, mirroring PIF stakes in Newcastle United and Pro League via multi-billion transfers. Critics, including Amnesty International, argue this diverts from reforms amid warnings of Qatar-like migrant deaths in 2034 builds, with HRW issuing “red cards” for FIFA’s approval despite uncontested bid.
Philip Bahoshy’s emphasis on “fundamentals and liquidity” parallels FIFA’s $1 billion Saudi Fund for Development loans for global stadiums, announced November 2025, raising complicity questions as Sultan bin Abdulrahman Al-Marshad and Gianni Infantino hailed youth empowerment. ESPN noted FIFA’s deepening Saudi ties pre-2034.
Transparency and Labour Rights Issues
VC selectivity amid “global uncertainty” contrasts opaque PIF funding, lacking FIFA-required disclosures; UAE’s 17 M&As and 231 deals signal similar Gulf opacity. Labour concerns escalate with mega deals funding infrastructure, potentially exploiting migrants as in past Gulf events.
Press Freedom and Stakeholder Accountability
Restricted press in Saudi/UAE hampers scrutiny, conflicting FIFA’s freedom standards; MAGNiTT’s “investor confidence” via diplomacy ignores CIVICUS warnings on sportswashing depths. Civil society questions if VC boom ($1.72 billion) and globals like Atomico legitimise hosting.
Broader Global Debates
VC ties to Vision 2030 echo sportswashing debates, per Play the Game on PIF portfolios and IPS Journal on ambitions. MAGNiTT’s H1 2025 report confirms Saudi/UAE 91 per cent dominance, per Inc. Arabia’s Philip Bahoshy interview. Frontiersin.org flags possible sportswashing in league take-off.
Stakeholders, fans, and rights groups legitimately probe if economic “resilience” trumps ethics, urging FIFA audits.