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January 2025 Breaks Records As the Warmest On Record, Despite La Niña Transition

The year 2025 has started with a record-breaking January, marking the warmest January on record, continuing the trend of extreme global temperatures despite the shift to the cooler La Niña weather pattern.

Key Facts

  • January 2025 continued the pattern of unusually high global temperatures, with the average temperature being over 1.5°C higher than pre-industrial levels in 18 of the last 19 months, according to the EU’s Copernicus Climate Change Service (C3S).
  • The global temperature for January was 1.75°C higher than pre-industrial levels.
  • This warm streak continues even as the world shifts from the previous warming El Niño phase, which contributed to making 2024 the hottest year on record, to the cooling La Niña phase. La Niña is characterized by the cooling of equatorial Pacific waters, typically limiting the global temperature rise.

Important Quote

“The fact that we are still seeing record temperatures outside the influence of El Niño is a bit surprising,” said Samantha Burgess, strategy manager at the European Centre for Medium-Range Weather Forecasts.

Key Story

El Niño peaked more than a year ago, and Copernicus estimates that La Niña has not yet fully developed, placing the world in a neutral state between the two phases.

Despite La Niña’s cooling effect, Burgess notes that it might not be enough to temporarily curb global temperatures. Other factors contributing to the heat include extreme temperatures in other ocean basins and, most importantly, the ongoing greenhouse gas emissions, which are the primary driver of global warming.

“The biggest factor contributing to climate warming is the burning of fossil fuels,” says Burgess.

Scientists from Berkeley Earth have projected that 2025 is likely to be the third warmest year on record, following 2024 and 2023. Although La Niña may cause some cooling, uncertainty remains about how it will develop.

Globally, average sea surface temperatures for January 2025 were the second highest ever recorded for the month, only slightly surpassed by January 2024.

FinTech’s Dominance In MENA: Three Strategic Drivers Behind Unyielding VC Success

Despite facing tightening global liquidity and macroeconomic headwinds, the FinTech sector continues to assert its leadership in the MENA region. In the first half of 2025, FinTech emerged as the most resilient and appealing arena for venture capital investments, proving its worth as a catalyst for financial innovation and inclusion.

Addressing Structural Financial Gaps

In many parts of MENA, a significant proportion of the population remains underbanked and underserved by traditional financial institutions. FinTech companies are uniquely positioned to address these persistent challenges by bridging critical access gaps and driving financial inclusion. With the proliferation of payment apps, digital wallets, and micro-lending platforms, investors have witnessed firsthand how these solutions pave the way for scalable growth and eventual exits. Early-stage momentum in the region is underscored by a doubling of pre-seed deals year-over-year, reinforcing the sector’s capacity for rapid innovation and sustainable expansion.

Highly Scalable and Replicable Business Models

One of the key factors behind FinTech’s dominance is the inherent scalability of its business models. Once the necessary infrastructure and regulatory approvals are in place, these models have demonstrated robust performance across borders. The first half of 2025 saw a marked acceleration in deal activity, with payment solutions leading the charge with 28 deals in MENA—a significant increase over the previous year. Lending platforms, in particular, experienced a meteoric 500% year-over-year increase in funding, emerging as the fastest-growing subindustry. Such replicability makes FinTech an attractive proposition for investors seeking high-growth opportunities in diverse markets.

Supportive Regulatory And Government Backing

The strategic support offered by key government initiatives in the UAE and Saudi Arabia has been instrumental in propelling the FinTech sector forward. Progressive frameworks, such as the UAE’s open finance and digital asset directives, coupled with Saudi Arabia’s live-testing sandboxes, have materially lowered entry barriers for startups. These measures not only foster innovation but also streamline the path to commercialization. Consequently, the combined efforts of these regulatory bodies have enabled the UAE and Saudi Arabia to account for 86% of MENA’s total FinTech funding in H1 2025.

The resilience of FinTech in MENA is not merely a reflection of contemporary market trends—it signals a fundamental shift in the region’s economic fabric. With an unwavering commitment to addressing real financial challenges, scalable and replicable business practices, and robust regulatory support, FinTech is setting the benchmark for sustainable innovation. As capital markets become increasingly discerning, this sector stands out as a beacon of long-term growth and transformative impact.

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