RIYADH: Middle East and North Africa venture funding showed signs of deeper stress in the first half of 2026, with startup investment falling 22 percent year on year to $1.35 billion while deal count dropped 41 percent to 214 transactions, the lowest half-year total since at least 2022, according to MAGNiTT.
The sharper warning signal was not the decline in capital, but its increasing concentration among fewer startups.
Two mega-rounds worth a combined $480 million cushioned the headline decline, while the 10 largest transactions accounted for 58 percent of all funding during the period, MAGNiTT said in its “State of Venture Capital: H1 2026 Review” report.
The Dubai-based venture data platform said the first-half figures suggest the full effect of regional conflict and tighter cross-border capital flows may not be visible until the third quarter.
Funding was broadly unchanged between the first and second quarters, at $679 million and $667 million, respectively, but the number of deals fell to 90 in the second quarter, the lowest quarterly figure in the available data series.
