Tunisia Lags Behind in the Startup Funding Race as Saudi Arabia Reclaims Top Spot in MENA

Tunisia continues to trail in the global race for startup financing. Indeed, Saudi Arabia has re-emerged as the leading market for startup funding in the Middle East and North Africa (MENA) region. According to data from Wamda, companies in the Kingdom raised nearly $1 billion in the third quarter of 2026, surpassing the United Arab Emirates (UAE) with $507 million and Egypt with $56.4 million. These figures highlight that investments remain concentrated among a select few companies, with significant disparities between markets.

Regional Overview: A Strong Rebound, But Still Below Last Year’s Levels

In total, MENA startups raised $1.65 billion between July and September 2026, according to Wamda’s report published on October 12. This represents more than double the amount recorded in the second quarter, marking a 108% increase. However, funding levels remain 63% lower than those seen in the third quarter of 2025. While the market has rebounded over the past three months, it has not yet recovered to its previous year’s peak.

Saudi Arabia: Fintech Drives a Record Quarter

Saudi Arabia leads the region with nearly $1 billion raised across 62 deals. This is a dramatic surge from the second quarter, when Saudi startups had only secured $102 million. This sharp increase is primarily driven by the fintech sector, which attracted $815.8 million across 16 deals. E-commerce followed with $98 million, and proptech with $50.3 million.

Three major deals account for a significant portion of this result:

Barq raised $329.5 million.
Tabby secured $233 million.
Lendo raised $200 million in debt financing.

Together, these three financings total $762.5 million, representing approximately 75% of Saudi Arabia’s total funding. In other words, the Kingdom’s top position relies heavily on these three companies. This does not mean other startups are unable to secure funding, but their deals carry far less weight in the national aggregate. To truly gauge the vitality of an ecosystem, one must look not only at the total amount raised but also at the number of companies gaining access to capital.

UAE: Mobility Leads, But Concentration Remains High

The UAE holds the second position with $507 million raised across 41 deals. This amount represents a 14% decline from the previous quarter, when startups had raised $591.3 million. The mobility sector leads in funded sectors with $250 million, followed by fintech at $164.3 million and healthtech at $25.2 million.

Again, two companies played a pivotal role:

Moove raised $250 million in a Series C round.
Fasset secured $68 million in a Series C round.

Together, these two deals account for $318 million, or nearly 63% of the UAE’s total. Without these two operations, funding would have dropped to $189 million.

These figures show that the UAE remains capable of attracting large investments, particularly in companies that are further along in their development. However, they also indicate that quarterly results can be heavily influenced by a few major funding rounds. The overall amount alone does not reveal whether younger startups are finding it easier to finance their projects.

Egypt: A Decline Driven by Limited Activity

Egypt remains in third place, but with significantly lower amounts. Startups in the country raised $56.4 million across 15 deals, down from $72.6 million in the second quarter, a 22% decrease. A large part of this activity is explained by the funding of Paymob. The payment infrastructure provider raised $35 million in a pre-Series C round, accounting for approximately 62% of Egypt’s total. Without this deal, startups in the country would have raised only $21.4 million.

Fintech also dominates in Egypt, with $45 million raised. Edtech attracted $3 million, and e-commerce infrastructure secured $2.8 million. The country maintains some level of funding activity, but the amounts remain limited and rely heavily on a single company.

Regional Sector and Stage Analysis

On a regional scale, fintech is the primary funded sector. It attracted approximately $1.03 billion in the third quarter, representing nearly 62% of the total. Mobility ranks second with $285 million, followed by e-commerce at $105.6 million. This distribution shows where capital is flowing but also underscores the weight of specific sectors in investor choices.

The stage of company development also plays a crucial role:

Late-stage startups raised $606 million across just 7 deals.
Early-stage startups secured $505.4 million through 94 deals.

This indicates that more mature companies attract large amounts in a few transactions, while funding for younger startups is spread across a much larger number of projects.

Implications for Entrepreneurs and Founders

For entrepreneurs, these data points serve as a reminder that looking solely at the amounts raised in a country is insufficient to assess funding opportunities. The industry sector, the company’s development stage, and the type of investors sought are all critical factors. A startup in its early stages has different needs and opportunities than a company preparing for expansion.

Furthermore, access to capital remains highly unequal among founding teams:

Female-led startups raised $12.7 million, less than 1% of the regional total.
Mixed-gender teams secured $15.9 million.
Male-led startups raised $1.62 billion.

Conclusion

In the third quarter, Saudi Arabia asserted its dominance through several major fintech deals. The UAE remains a significant market, driven notably by the mobility sector, while Egypt experienced a decline. The increase in regional funding compared to the previous quarter is real. However, it remains to be seen whether this growth will benefit a broader range of startups or if the coming months will confirm the dominant weight of a few large enterprises.