At first glance, investment activity across the Middle East and North Africa (MENA) appears to have rebounded strongly in May 2026. Startups in the region raised a combined $454.7 million across 33 deals, marking a 202% month-on-month increase and a 76% rise compared to May 2025.
However, a closer look shows that most of this growth was driven by debt financing, which made up 66% of the total funding raised during the month. Even without counting debt deals, startups still raised more capital and completed more transactions than in April, indicating a slight increase in investor activity.
Yet the year-on-year picture tells a different story. While capital deployment increased, the deal count declined by 57% compared to May 2025, suggesting that investors remain selective, favouring larger transactions over broader market participation amid continued regional uncertainty.
The usual ranking remains unchanged
The UAE maintained its position as the region's most-funded ecosystem in May, attracting $379 million across 15 deals. The figure was largely driven by Trukker's $300 million debt financing, which accounted for nearly 80% of all capital raised in the country during the month.
