RIYADH: Startup investment across the Middle East and North Africa declined in February, as companies raised a combined $326.6 million across 62 deals, reflecting a slowdown following a stronger start to the year.
The total represents a 42 percent month-on-month decline and a 38 percent drop compared with February 2025.
Despite the pullback in overall funding volumes, the structure of investment remained largely consistent, with debt financing accounting for 16 percent of capital deployed, indicating continued investor preference for equity-backed ventures.
The UAE remained the region’s most active funding hub during the month, with 23 startups in the country raising $162.8 million, accounting for nearly half of all capital deployed across MENA.
Saudi Arabia ranked second, with 25 startups securing $87.7 million, while Egypt placed third with $64 million across six deals, largely driven by a single later-stage transaction.
