MENA Startups Raise $1.7B in First Half of 2026
Funding declined 18% year-on-year as investors backed larger ecosystems and more established sectors.
Startups across the Middle East and North Africa (MENA) raised $1.7 billion through 242 funding rounds during the first half of 2026, according to a new report by Wamda, despite heightened geopolitical uncertainty across the region.
Total funding fell 18% from $2.1 billion recorded during the first half of 2025, while the number of investment rounds declined 28%. The report also found that debt financing accounted for 29% of total capital, down from 44% a year earlier, reflecting a shift toward equity funding and investment in companies with clearer growth trajectories.
Fintech remained the region's largest investment category, attracting $708 million across 51 deals, followed by logistics with $315 million and proptech with $241 million across 18 transactions. Early-stage startups dominated activity, accounting for 172 funding rounds that raised $444 million, while 11 later-stage companies secured $224 million.
The UAE attracted $1.2 billion across 83 deals, representing around 70% of all capital raised in the region and marking a 125% increase year-on-year. Saudi Arabia followed with $259 million across 80 deals, while Egypt secured $158.9 million through 29 transactions. In Egypt, fintech led investment with $82.3 million, followed by e-commerce with $50.2 million.
During the second quarter alone, startups raised $793.5 million across 104 deals, down 16% from the previous quarter. Logistics accounted for the largest share of funding with $300 million, ahead of fintech, which raised $278.6 million.
The report also highlighted a continuing gender imbalance in venture funding. Male-founded startups secured approximately 95% of all capital raised, collecting $1.6 billion across 213 deals, while female-founded startups raised $2.5 million through 14 transactions, representing 0.14% of total funding during the first half of the year.
