MENA EdTech funding jumps 169% in Q1 2025 amid global slowdown

The MENA Edtech Funding landscape is defying global venture capital trends, with a remarkable 169% increase in Q1 2025 compared to the same period in 2024. While worldwide Edtech investment totaled $410M in Q1 2025, following a sharp decline to $2.4 billion in 2024 (an 89% drop from its 2021 peak), MENA continues to grow.

Since 2010, education sector startups in the region have raised a total of approx. $0.69 billion, reflecting an early-stage market that is now gaining momentum. Fueling this surge is regional realignment and strong investor interest in scalable education models. This article examines the data-driven shifts reshaping Edtech funding across the Middle East and North Africa.

Q1 2025: A Divergent Path for MENA Edtech Funding

Global Edtech funding fell 35% year-over-year, and early-stage activity dropped significantly. However, MENA stood apart, securing 20% more deals and attracting major funding rounds, particularly in Saudi Arabia’s Edtech sector. ULA.me’s sizable raise contributed significantly to the region’s growth, signaling increased confidence among investors looking for high-impact, scalable opportunities in emerging markets.

The Global Edtech Investment Slowdown: A Reality Check

Between 2010 and Q1 2025, venture capital investment in education saw dramatic fluctuations. The sector peaked at $20.8 billion in 2021 before crashing to $10.6 billion in 2022, and further down to $3.0 billion in 2023. With $2.4 billion invested throughout last year, the industry has reached its lowest point since 2014. Investor caution, shrinking late-stage deals, and pandemic-era bets awaiting outcomes are key reasons behind the sharp decline.

Why MENA Edtech Funding Stands Out

Despite global setbacks, MENA's Edtech ecosystem has proven resilient due to:

• Strategic Market Growth: Governments across the region are actively supporting digital education through policy reforms and funding incentives.
• Scalable Solutions: AI-powered tools, international student mobility platforms, and workforce training remain attractive for investors.
• Funding Consolidation: While the global average check size rose to $7.8M as investors focused on fewer, stronger plays, MENA’s funding momentum is fueled by strong growth and large raises like ULA’s $28 million funding round in Saudi Arabia.

Emerging Trends in MENA Edtech Investments

MENA’s Edtech sector is aligning with global priorities while maintaining its own unique trajectory. Investment is consolidating around AI-driven education tools, automation, and access-focused platforms, with a strong emphasis on regional scalability. Key funding rounds, such as ULA’s significant investment in Saudi Arabia, signal growing confidence among investors looking for high-impact, scalable opportunities within the region.

Additionally, while North America’s Edtech deal volume dropped by over 50%, MENA surged forward, demonstrating its increasing role in shaping scalable education solutions, especially across the region. With 169% funding growth in Q1 2025, MENA is becoming an attractive market for investors seeking emerging, high-growth opportunities beyond traditional Western hubs.