MENA startup funding rose modestly in July 2026, but the rebound was largely debt-driven, with equity investment remaining subdued.
Startups across the Middle East and North Africa raised $172.6 million across 45 deals during the first month of the second half of 2026, up 16% from June but still 78% below the amount recorded in July last year.
The monthly increase therefore offers only a partial improvement. Debt accounted for 56% of total funding in July, compared with 11.5% in June and just 2% in July 2025.
Saudi Arabia returns to the lead
Saudi Arabia reclaimed the top position in July after failing to lead the regional rankings throughout the first half of the year. Startups based in the kingdom raised $106.6 million across 16 transactions, accounting for nearly 62% of the month’s total funding.
