MENA startups raise $148.2 million in June 2026, UAE leads with $93.8 million

Investment into MENA startups slowed sharply in June 2026, with 41 companies raising a combined $148.2 million — a 76% decline from May but 190% higher than June 2025. The United Arab Emirates retained its lead, accounting for $93.8 million of the total across 12 startups, while Egypt moved into second place with eight startups raising $41.4 million. Overall deal activity rose to 41 transactions from 33 in May.

"The month-on-month decline looks significant at first glance. However, excluding debt financing from both months narrows the gap to just 15 percent," said Wamda, which compiled the monthly funding report. The same report added: "Enterprise AI emerged as the largest recipient of capital," with two startups alone securing $76 million.

June's fundraising picture showed a distinct geographic and sectoral reshuffle. After the UAE and Egypt, Saudi Arabia — usually one of the region's top markets — ranked third, with five startups raising $5.7 million. Morocco reappeared in the rankings after proptech startup Agenz closed a $5 million round, and Oman saw 10 startups raise a total of $1.3 million, reflecting active accelerator-driven deal flow despite modest ticket sizes.

• Top sectors by capital: Enterprise AI $76 million (2 startups), Fintech $43.5 million (13 startups), Regtech $15.2 million (3 rounds), Proptech $7 million (3 deals).
• Business models: B2B startups attracted $96.3 million across 27 deals; consumer-focused ventures raised under $50 million via 11 transactions; the remainder went to hybrid models.
• Stage and structure: June recorded no later-stage equity rounds, with funding concentrated in early-stage equity and debt; 14 startups did not disclose round stage.
• Founder gender split: Female-led startups raised $260,000 across two deals; mixed-gender teams secured $5.6 million; male-founded startups drew $142.3 million across 37 transactions.

The prominence of Enterprise AI in June — two rounds totaling $76 million — underscores investor appetite for AI infrastructure and B2B automation plays in the region. Fintech retained the highest deal count, with 13 transactions accounting for $43.5 million, while regtech and proptech continued to attract targeted interest.

Market dynamics offer mixed signals. Though headline funding dropped sharply month-on-month, the rise in deal count and the narrowing of the decline once debt is excluded suggest a rebalancing rather than a collapse. The report noted that signs of economic stabilization in Egypt — a steadier Egyptian pound and rebounding tourism revenues after a pause in regional hostilities — helped lift investor confidence in that market.

Looking ahead, the MENA startup ecosystem appears positioned for a stronger second half of 2026 if macroeconomic and geopolitical conditions remain stable. The concentration of capital in early-stage and B2B opportunities, continued interest in fintech and AI, and a rebound in previously quieter markets such as Egypt and Morocco point to selective, sector-led recovery rather than broad-based, late-stage momentum.