In May, startups in the Middle East and North Africa secured $454.7 million through 33 deals, marking a significant 202% increase from the previous month and a 76% rise from the previous year. This surge was primarily driven by debt financing, which constituted 66% of the total capital raised. Even without debt deals, there was an uptick in both capital raised and the number of transactions compared to April, indicating a modest recovery in investor activity. However, the year-on-year comparison reveals a more selective funding landscape, with a 57% drop in the number of deals compared to May 2025, suggesting a focus on larger transactions and later-stage companies amid ongoing regional and macroeconomic uncertainties.
The UAE emerged as the leading market, attracting $379 million across 15 deals, largely bolstered by a $300 million debt financing round by Trukker. Saudi Arabia followed, with $70 million raised through 11 deals, reflecting a 167% increase from April. Egypt maintained its position among active startup ecosystems with three startups raising a combined $5 million.
Sector-wise, logistics led in funding value, thanks to Trukker’s contribution, while fintech secured $105.7 million across five deals. Human resources tech and Software-as-a-Service also saw notable activity. Debt financing was prominent, with two transactions accounting for $300.5 million, and later-stage startups attracted significant interest, raising $68.4 million through two series B rounds. Early-stage companies raised $52.2 million across 21 deals.
Business-to-business startups dominated, raising $371.5 million across 24 deals, while consumer-focused startups secured $85.7 million. Male-founded startups received the majority of funding, raising $442 million across 28 deals, whereas women-founded startups raised $200,000 in two deals, and mixed-gender teams secured about $12 million.
In the first five months of 2026, MENA startups raised approximately $1.5 billion. Saudi Venture Capital invested in Khwarizmi Venture Capital Fund 2, targeting seed-to-series A investments in high-growth tech startups, with a focus on Saudi Arabia. Algebra AI launched with $7 million in funding to develop AI-powered workflows for mid-market businesses in the GCC. Zuvees, a UAE-based gifting platform, raised $1.6 million to enhance its AI capabilities and expand internationally. Egyptian fintech MNT-Halan reached a $1.4 billion valuation after a new investment round, planning to expand operations in Egypt and the region.
Iraq-based startups Mabiati and Al Jabal Agriculture secured six-figure investments to accelerate growth in digital commerce and agriculture sectors. Edafa Venture acquired AI startups Kuadra and IRRI Vision to enhance its presence in the AI ecosystem. Egyptian fintech Blnk raised $37.1 million to expand consumer financing and credit access across Egypt.
