Startup Wrap: MENA startup funding stands as $1.7bn in H1 2026

Startups across the Middle East and North Africa raised $1.7 billion across 242 funding rounds in the first half of 2026, as investors continued to deploy capital amid heightened geopolitical uncertainty. The total marks an 18 percent decline from the $2.1 billion raised in H1 2025 and a 28 percent year‑on‑year drop in deal volume, while deal composition pointed to greater concentration of capital in larger ecosystems, established sectors and later‑stage bets.

"capital became increasingly concentrated in larger ecosystems, established sectors and startups with clearer paths to scale," the Wamda H1 2026 report noted, framing a period in which investors favoured more mature markets and companies with demonstrable routes to growth.

The second quarter mirrored the broader trend, with MENA startups raising $793.5 million across 104 deals, down 16 percent from Q1. The UAE remained by far the largest market in Q2, attracting $591 million across 37 deals, followed by Saudi Arabia with $102 million across 23 transactions and Egypt with $72.6 million across 17 deals. Sector concentration was pronounced: logistics captured $300 million through just two transactions, while fintech was the most active sector by deal count with $278.6 million across 26 deals.

H1 sector and stage breakdown

• Fintech led H1 investment with $708 million across 51 rounds.
• Logistics was the second-largest sector at $315 million.
• Property tech secured $241 million across 18 deals.
• Early-stage activity dominated: 172 early-stage startups raised $444 million; only 11 later-stage companies secured funding.
• B2B startups drew the largest share with $763.5 million across 140 deals; B2C companies raised $748 million.
• A stark gender funding gap persisted: male-founded startups captured about 95% of capital ($1.6 billion across 213 deals), while female-founded startups raised $2.5 million through 14 transactions.

Country-level dynamics amplified concentration. The UAE strengthened its lead in H1 with $1.2 billion raised across 83 deals; its largest sectors were fintech ($409 million over 20 deals), logistics ($300 million via two transactions) and property tech ($215 million across 13 deals). Saudi Arabia cooled from a record 2025, recording $259 million across 80 deals in H1, with fintech contributing $176 million across 13 startups and earliest-stage ventures raising $201 million across 69 rounds. Egyptian startups raised $158.9 million across 29 deals, including two later-stage rounds totalling $53 million; fintech in Egypt attracted $82.3 million across seven deals.

Notable rounds and local activity

• Think, a Saudi AI infrastructure startup founded in 2025 by Ahmed Al‑Sharif and Ammar Enaya, raised more than $8 million in a pre‑seed round co‑led by RAED Ventures and Wa'ed Ventures, with participation from Dhahran Techno Valley's VC arm and strategic angels. The company said the round is "the largest AI infrastructure and deeptech pre‑seed funding round in MENA to date."
• Egyptian logistics provider Mylerz, founded in 2019 by Samer Gharaibeh, raised more than $2 million in a round led by Lorax Capital Partners with participation from Fawry and existing investors to expand fulfilment and last‑mile capacity.
• Morocco's ORA Technologies, founded in 2023 by Omar Alami, extended its Series A to $10 million after securing an additional $2 million from Moroccan investors to scale its KOUL food delivery platform and ORA Cash digital wallet.

Outlook: The first half of 2026 suggests investors are not withdrawing from MENA but are being selective—allocating larger checks into proven ecosystems, capital‑efficient sectors like fintech and logistics, and startups with clearer paths to scale. The funding gap for female founders and the scarcity of later‑stage rounds remain key challenges for the region's capital markets as the year progresses.