MENA startups funding reaches almost $500m a month: report 

Updated 36 sec ago

Nour El-Shaeri 

March 03, 2026 15:08

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RIYADH: Investment in Middle East and North Africa startups surged nearly fivefold in February, with funding reaching $494 million across 58 deals, according to Wamda’s monthly report. 

The sharp increase follows a January dominated by debt financing, which accounted for 90 percent of investments. 

However, in February, debt financing dropped to 15 percent, with equity investments driving growth. Excluding debt, month-on-month funding rose 371 percent. 

Saudi Arabia and UAE lead regional investment 

Saudi startups secured the largest share, raising $250.3 million across 25 deals, fueled by major announcements at LEAP 2026. The UAE followed with $203.5 million across 15 deals, while Egypt ranked third with $27.5 million from eight deals. 

Oman returned to the top four, securing $6 million across two deals. Smaller investments were recorded in Morocco, Tunisia, and Jordan, as well as Bahrain and Qatar. 

Morocco and Jordan each saw $1 million invested across two and one deals, respectively.  

Tunisia recorded $300,000 across two deals, while Bahrain secured $1.7 million in a single transaction, and Qatar saw $2.7 million invested in two deals. 

Fintech leads sectoral investments 

Fintech attracted the highest funding, securing $274 million across 15 deals. Insurtech followed with $55 million, while logistics raised $28.5 million in four deals. 

Other notable sectors included martech and edtech, each raising $28 million, and contech securing $17.7 million. Cleantech startups attracted $15 million, while AI-focused startups secured $14 million. 

Software-as-a-Service companies raised $13.4 million, while e-commerce and Web3 startups secured $6.9 million and $5 million, respectively.  

Healthtech, e-services, foodtech, and regtech startups attracted smaller amounts, ranging from $866,000 to $2.9 million. Mobility, mediatech, and gametech startups each raised under $200,000. 

Later-stage funding gains momentum 

February saw an increase in later-stage funding rounds, with buy now, pay later giant Tabby securing $160 million in Series E funding, the largest single deal of the month.  

Flow48, an alternative finance platform, raised $69 million, while Applied AI secured $55 million, making them the other two standout mega deals. 

Series A startups collectively raised $158 million across seven deals, while series B funding reached $56 million across two rounds.  

Pre-series B funding accounted for $22.7 million across eight transactions, while pre-Series A startups raised $5.5 million across five deals. 

In contrast, early-stage funding was widely distributed, with 15 pre-seed startups raising $22 million and 10 seed-stage startups securing $27.8 million.  

Equity investments accounted for $2.5 million across four deals, while one grant of $1.7 million was recorded. 

B2B startups attract most investment 

Startups operating under the business-to-business model attracted the largest share of investment, raising $191.6 million across 33 deals.  

Business-to-consumer startups followed with $138.5 million secured across 18 deals.  

Meanwhile, six startups operating in both B2B and B2C models raised a combined $164 million. 

Gender disparity in startup funding persists 

Investment remained heavily skewed toward male-led startups, which secured $428.7 million, accounting for 86.7 percent of total funding.  

Mixed-gender teams attracted $65 million, representing 13.2 percent of investments, while female-founded startups received just $200,000, highlighting the ongoing gender disparity in the region’s startup funding landscape. 

Venture capital activity on the rise 

MENA’s venture capital ecosystem is also seeing renewed interest from international investors.  

500 Global, a US-based VC firm, recently launched 500 MENA L.P., a dedicated fund focused on high-growth tech startups in the region.  

The fund aims to support companies beyond the seed stage, catalyzing further expansion of the region’s technology ecosystem. 

Additionally, Al Madinah Angels Network was recently established in Saudi Arabia to support startups under the Al Madinah Ventures Initiatives.  

This angel investor group seeks to provide early-stage funding and mentorship to founders, contributing to the region’s broader economic growth strategy. 

Saudi Arabia continues to be the leading VC investment hub in the region, having secured $750 million in total venture capital funding in 2024. 

The country’s sustained leadership in startup investment underscores its growing influence as a center for entrepreneurship and innovation in MENA. 

Other countries are following the regional trend. Earlier in February, the Qatar Investment Authority announced that it is advancing its $1 billion “fund of funds” venture capital program.  

The initiative, currently evaluating eight new VC firms, aims to fill funding gaps in series A, B, and C rounds while encouraging participating firms to establish offices in Doha to build a stronger local ecosystem.