Explaining the Market Reset in GCC Funding Drops in April 2025

The Gulf Cooperation Council (GCC) has entered a period of sharp recalibration in its venture capital landscape as we move into Q2 2025. Following a record-breaking surge in 2024, the region’s startup ecosystem is now contending with a sobering cooldown. As of April 2025, year-to-date (YTD) venture deal value has dropped to US $1.45 billion, marking a steep 38.6% decline from US $2.36 billion in April 2024. Meanwhile, deal count has nearly halved, falling 45.5% from 178 deals in 2024 to just 97 this year, despite a relatively stable year-over-year performance between 2023 and 2024 (+1.7%).

The current decline in VC activity is underscored by the absence of any mega-rounds (deals exceeding US $100 million) in April 2025. UAE-based startups once again led the region's funding charts—just as they did the last 2 Aprils. However, this month’s biggest round, HRA Experience’s US $39.6 million raise, and April 2023’s top contender, Ryse Energy with US $15 million, are dwarfed by the US $1.5 billion raised by G42 in April 2024. That single deal significantly inflated last year’s YTD funding total and distorted year-over-year comparisons.

Excluding the outlier by G42, April 2024’s adjusted YTD total falls to just US $859 million, and April 2025’s US $1.45 billion actually presents a significant increase. Meanwhile, average deal size continues to climb in a thinning market, rising from US $4.4 million in April 2023 to US $13.3 million in 2024, and reaching US $15 million by April 2025. However, none of the top five YTD deals in 2025 thus far occurred in April. Regionally, the UAE emerged as the GCC’s most active geography in April, accounting for four of the top five deals, albeit at smaller sizes.

Macro Context and Outlook

This reginal funding slowdown is not occurring in a vacuum. Tighter global rates and stronger USD continue to weigh on cross-border venture flows into emerging markets; effects are most visible in later-stage and debt-linked rounds. According to the International Monetary Fund (IMF), emerging markets like the GCC face “structural liquidity constraints” exacerbated by capital outflows and conservative monetary policies (IMF World Economic Outlook, April 2025).

Looking ahead, founders need to adapt new expectations. If interest rates plateau and global liquidity begins to return in the latter half of the year, we may see renewed momentum, particularly for startups with proven models and regional expansion potential. For now, the GCC’s venture ecosystem is undergoing a critical reset. The inflated valuations and capital surges of 2024 are unlikely to return in the short term. The region appears to be entering a phase of consolidation and discipline—one that could ultimately lay a more sustainable foundation for long-term growth. In this new reality, resilience, efficiency, and investor confidence will define which ventures emerge stronger by year’s end.

Let’s take a look at the GCC’s top 5 funding rounds in April 2025.

#1 - HRA Experience (UAE) | TravelTech | US $39.6 Million Unknown Series Round

Founded by Adem Kiraz, HRA Experience is pioneering a Web3-powered global travel and payment ecosystem, aiming to merge blockchain technology with real-world mobility to create a seamless, borderless travel experience. The company integrates crypto payments, digital identity, and decentralized financial tools into a unified platform that caters to modern, globally mobile users.

In April 2025, HRA Experience secured US $39.6 million in an undisclosed series round. The capital will be used to accelerate the rollout of HRA’s core platforms, expand operations across Europe, and support ecosystem development.

#2 - Cledor (UAE) | PropTech | US $18 Million Corporate Round

Founded in 2023 by Omar Gull, Cledor’s mission is to help stakeholders unlock the full potential of their land assets through joint ventures, development partnerships, and strategic branding collaborations. It is revolutionizing the real estate development process by offering a seamless, end-to-end platform for landowners, investors, and developers. In just under a year, Cledor secured AED 2.3 billion in Gross Development Value (GDV) and more than 1.3 million square feet in projects, while also having launched and sold out our first development in just four days, with a GDV of AED 435 million.

In April 2025, Cledor secured US $18 million in its latest Corporate round by which Amwaj International acquired 18% stake with Cledor's post-money valuation hitting US $100 million. Under the partnership, Cledor will manage and spearhead Amwaj's upcoming real estate ventures in the UAE, harnessing its expertise in luxury real estate development. The funds will enable Cledor to support recruitment and manage operational expenses until its projects generate liquidity. Cledor will also leverage Amwaj's global team of professionals, procurement network, and expertise to accelerate future growth.

#3 - Erad (KSA) | FinTech | US $16 Million Seed Round

Founded in 2022 by Salem Abu-Hammour, Faris Yaghmour, and Youssef Said, erad was launched to address the persistent financing gap faced by small and medium-sized enterprises (SMEs) across the Middle East. The company provides Shariah-compliant, revenue-based financing solutions that are fast, flexible, and data-driven—offering approvals within 48 hours without requiring collateral. To date, erad has supported hundreds of businesses with over SAR 100 million ($26.6 million) in funding in Saudi Arabia and the UAE, driving substantial growth for businesses such as Citron, Wixsana, and House of Pops. The demand for erad’s solutions continues to surge, with over SAR 2 billion (US $532 million) in funding requests on its platform since its launch, highlighting the critical need for alternative SME financing in the region.

In April 2025, Erad raised US $16 million in a Seed round backed by leading global and regional funds, including Y Combinator and Nuwa Capital, bringing its total cumulative funds to US $18.4 million. The funding will be used to deepen Erad’s market presence and expand its product offerings. With its entry into Saudi Arabia, the company will focus on doubling down on local hiring across multiple roles.

#4 - Fuse Financial Technologies (UAE) | FinTech | US $6.6 Million Seed Round

Founded in 2023 by George Davis and James Smith, Fuse is the first payment platform in the region to offer virtual international bank account numbers (IBANs), making it easier and safer to carry out cross-border financial transactions. The UAE is a key market for Fuse, which has recently begun offering direct payment services in Saudi Arabia, Egypt, and Jordan. The company also supports currency disbursements for Indian and Chinese companies operating in the UAE that require money transfer services.

In April 2025, Fuse raised US $6.6 million in Seed funding led by Northzone, bringing its total cumulative funds raised to US $8.6 million. The company plans to use this funding to expand its team, acquire additional regional licenses, and extend its product offerings to new countries in MENA.

#5 - True Gamers (UAE) | Gaming | US $5 Million Seed Round

Founded in 2015 by Anton Vasilenko and Vladislav Belyanin, True Gamers operates at the intersection of gaming, hospitality, and entertainment offering immersive esports experiences through its network of gaming cafés and esports venues. Today, the company boasts 14 gaming cafes and clubs in the UAE, with 10 more under development across the UAE, Morocco, Saudi Arabia, Jordan, Germany, and France.

In April 2025, True Gamers raised US $5 million in a Seed funding round, bringing its total cumulative funding to US $15.5 million. The new capital will be used to expand its franchise network, enhance its technology stack, and scale operations across MENA and Europe as the company is pursuing a hybrid growth model that combines franchising with venture capital, aiming to capture 10% of the global gaming café market by 2030.