UAE leads MENA startup investment in February, with 23 startups raising $162.8 million

The UAE emerged as the busiest funding hub in the MENA startup scene in February 2026, with 23 startups raising a combined $162.8 million — nearly half of the month’s total — as the region recorded $326.6 million deployed across 62 deals, according to a Wamda report published on 12 March 2026. Investment activity slowed sharply month-on-month and year-on-year, but the distribution of deals underscores continued investor interest in early-stage and B2B ventures.

"The UAE retained its position as the MENA region’s most active startup funding hub in February 2026, with 23 startups collectively raising $162.8 million, accounting for nearly half of the capital deployed across MENA during the month," the Wamda report said.

Regional and sector breakdown

Overall, MENA startups raised $326.6 million across 62 deals in February, marking a 42 percent decline from January and a 38 percent drop compared with February 2025. Key geographic and sector figures from the report include:

• Saudi Arabia: 25 startups raised $87.7 million.
• Egypt: Six deals raised $64 million, driven largely by a single later-stage transaction.
• Fintech: The dominant sector, attracting $94.7 million across 14 deals.
• E‑commerce: Returned to the top three sectors with $52 million across three transactions, bolstered by Breadfast’s $50 million pre-Series C round.
• Deeptech: Drew $51 million through two deals, highlighting appetite for capital-intensive technology plays.

Deal stages, financing types and business models

February featured only two later-stage transactions: Breadfast’s $50 million pre-Series C and Stake’s $31 million Series B. Early-stage activity drove the bulk of deal volume, with 49 companies raising $136.4 million. Debt instruments accounted for just 16 percent of total capital deployed, indicating a continued investor preference for equity financing.

• B2B startups: 38 deals attracted $137 million.
• B2C startups: 18 companies secured $62 million.
• Hybrid models captured the remainder of funding.

Gender dynamics and outlook

The Wamda report also highlighted persistent gender disparities. Female-founded startups did not receive any funding in February, including accelerator-backed deals. All capital deployed during the month went to male-led teams, while three mixed-gender founding teams collectively raised $14 million.

Wamda characterised February’s slowdown as structural rather than purely cyclical: the absence of mega rounds and a heavier concentration of early-stage transactions suggest more selective capital deployment, not wholesale retreat. The report noted that several regional venture funds closed new vehicles toward the end of 2025, leaving "substantial dry powder available for deployment" and supporting a cautiously optimistic outlook for MENA venture investment despite month-to-month fluctuations.