RIYADH: Startups in the Middle East and North Africa raised $1.7 billion across 242 funding rounds in the first half of 2026, as investors continued to deploy capital despite heightened geopolitical uncertainty, according to Wamda’s H1 2026 report.
The figure represents an 18 percent decline from the $2.1 billion raised in the same period of 2025, while deal volume fell 28 percent year on year. However, Wamda said the composition of funding pointed to a more selective market rather than a broad retreat.
The report said capital became increasingly concentrated in larger ecosystems, established sectors and startups with clearer paths to scale. The second quarter reflected the same trend, with MENA startups raising $793.5 million across 104 deals, down 16 percent from the first quarter.
The UAE remained the region’s leading startup market in the second quarter of the year, attracting $591 million across 37 deals. Saudi Arabia followed with $102 million through 23 transactions, while Egypt ranked third with $72.6 million across 17 deals.
Logistics was the largest sector by capital deployed during the quarter, raising $300 million through only two transactions. Fintech followed with $278.6 million across 26 deals, making it the most active sector by deal count.
