MENA Startups Raise $1.7 Billion in H1 2026, Down 18% from Last Year
Investment Landscape Evolves with Shift in Funding Structures and Sector Focus
The Middle East and North Africa (MENA) startup ecosystem has secured $1.7 billion in funding across 242 deals in the first half of 2026, according to the latest report by Wamda. This represents an 18% decline in investment amounts compared to the same period in 2025, while the number of transactions decreased by 28%.
Funding Trends and Sector Focus
The decline in funding does not affect all categories equally. Investors continue to support more mature companies, while mid-stage funding remains limited. Large-scale funding rounds are also concentrated on a smaller number of companies.
- Debt financing now accounts for only 29% of total funding, down from 44% a year ago, as equity funding regains prominence.
- B2B startups remain the primary beneficiaries, raising $763.5 million, outpacing consumer-oriented models. Investors prioritize companies with established revenue streams and clearer paths to profitability.
- By sector, fintech maintains its top position with $708 million raised across 51 deals, followed by:
- Logistics with $315 million, driven by two significant funding rounds in Q2.
- Proptech with $241 million, completing the top three.
Emerging Trends and Opportunities
Notable developments include the growing interest in Enterprise AI, with startups in this space raising $67 million in Q2, making it one of the most watched segments for the second half of the year.
Market Evolution and Investor Strategies
Beyond the decline in investments, the first half of 2026 confirms a shift in the market. Funds remain present but are now concentrating their investments on a more limited number of companies, focusing on more resilient sectors and validated business models.
