Investment activity across the Middle East and North Africa (MENA) cooled in June 2026, with 41 startups collectively raising $148.2 million, marking a 76% decline from the previous month. However, funding was still 190% higher than in June 2025.
The month-on-month decline looks significant at first glance. However, excluding debt financing from both months narrows the gap to just 15%, suggesting that the ecosystem is gradually recovering from the regional turmoil that weighed on investment activity throughout the first half of the year. Notably, deal activity actually increased, with 41 transactions recorded in June compared to 33 in May.
June also brought notable shifts in how capital was distributed across the region, both geographically and sectorally, reshuffling the rankings of the ecosystem's usual leaders.
Egypt returns to the top tier
The United Arab Emirates remained the region's top-funded market, with 12 startups raising a combined $93.8 million.
