Startups in the MENA region raised $1.7 billion in the first half of 2026 across 242 transactions, marking declines in both total funding and deal count but a greater concentration of capital in more mature ecosystems and sectors, according to the H1 2026 report.
Key figures for the first half
The $1.7 billion total represents an 18% decline from the $2.1 billion raised in H1 2025; the number of deals fell 28% year-on-year. Q2 followed the same pattern: $793.5 million invested across 104 transactions, a 16% decrease versus the previous quarter. These figures suggest MENA startup funding remains active but more selective.
Dominant ecosystems
The United Arab Emirates reaffirmed its regional leadership in Q2 with $591 million invested across 37 transactions. Saudi Arabia attracted $102 million through 23 deals, and Egypt recorded $72.6 million across 17 transactions. Over the full semester, the UAE concentrated $1.2 billion across 83 deals, Saudi Arabia totaled $259 million over 80 transactions, and Egypt reached $158.9 million across 29 deals.
Sectors: fintech leads, logistics capturing large tickets
Fintech remains the primary destination for capital in the region, with $708 million invested across 51 rounds in the semester. Logistics ranked second with $315 million, and proptech completed the top three with $241 million across 18 transactions. In Q2, logistics accounted for $300 million — via only two transactions — while fintech, with $278.6 million, was the most active sector by deal count (26).
Stages and business models
Fundraising continues to be predominantly early-stage.
