Investment momentum continues in MENA amid conflict

Investment momentum in the Middle East and North Africa persisted last week despite regional tensions, building on a record $7.5 billion raised by MENA startups in 2025 — a 225 percent surge year-on-year — while fresh rounds and fund commitments continued across Saudi Arabia, Egypt and Syria. A separate industry report showed Saudi Arabia’s venture capital ecosystem raised $219 million across 72 transactions in the first half of 2026, reflecting a 74 percent decline in funding and a 41 percent drop in deal volume year-on-year as mega-deals above $100 million were largely absent.

“Our investment in SEEDRA Ventures Fund II supports a manager focused squarely on backing Saudi technology founders at that critical stage, expanding the specialized capital available to them and reinforcing the private-sector engine of Vision 2030,” said Nora Al-Sarhan, CEO at SVC.

The week featured multiple notable investments and seed rounds that underline continued appetite for regional startups. Saudi Venture Capital (SVC) announced an investment in SEEDRA Ventures Fund II, a vehicle managed by SEEDRA Ventures that targets early-stage, high-growth technology companies in areas including artificial intelligence, fintech, proptech, SaaS and logistics. SEEDRA, founded in 2019, said Fund II was oversubscribed; Haitham Al-Foraih, managing partner of SEEDRA Ventures, said the backing “reinforces our conviction in the market and our ability to identify exceptional entrepreneurs early in their journey.”

Health and gaming sectors also drew fresh capital. Egyptian molecular diagnostics firm Reme-D raised $1.45 million in a Pre-Series A round led by Anara Impact Capital, with participation from Global Innovation Fund, Africa Health Ventures and other investors. Reme-D has developed 30 diagnostic products since 2023, supplied more than 550,000 tests across Egypt, Kenya and Sudan, and plans to use the new funding to expand manufacturing capacity, regional distribution and develop diagnostics for genetic diseases and cancer.

In gaming, Saudi-based FLOATY Studio — founded in 2023 by Fahad Qaysi, Zeyad Almalki and Abdullah Salah — secured $1 million in funding led by Merak Capital through its Merak Gaming Fund. The fund, an $80 million vehicle focused on gaming startups, has previously invested in studios including Qwacks and Khosouf Studio. Merak said the investment reflects confidence in FLOATY’s product vision and Saudi Arabia’s growing role in regional game development.

A noteworthy cross-border deal saw Syrian super app Labby raise $10 million from investors in the UAE and Saudi Arabia. Launched in 2024 by Mohammad Fawaz, Labby plans to deploy the capital to accelerate platform development, expand digital services and scale across the Syrian market; Syrian officials characterized the round as the country’s first direct foreign investment in a technology startup.

Deals highlighted this week

• SEEDRA Ventures Fund II — investment from SVC (fund manager: SEEDRA Ventures)
• Reme-D — $1.45 million Pre-Series A led by Anara Impact Capital; participants include Global Innovation Fund and Africa Health Ventures
• FLOATY Studio — $1 million led by Merak Capital via Merak Gaming Fund
• Labby — $10 million from UAE and Saudi-based investors (founder: Mohammad Fawaz)

Outlook: While regional conflict and global market caution have dampened the size and frequency of mega-rounds, active seed and growth-stage investing — supported by institutional players such as SVC and thematic vehicles like the Merak Gaming Fund — suggests a resilient pipeline of startups. Market watchers will be watching whether deal sizes recover in the second half of 2026 or whether capital deployment continues to concentrate into targeted sector plays and fund-backed portfolios.