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.
Across the first half of the year, fintech remained the region’s largest investment destination, attracting $708 million across 51 rounds. Logistics ranked second with $315 million, while property tech came third after securing $241 million across 18 deals.
Early-stage companies continued to account for most fundraising activity. According to Wamda, 172 early-stage startups raised a combined $444 million in the first six months of the year, while only 11 later-stage companies secured funding.
Business-to-business startups raised the largest share of capital, securing $763.5 million across 140 deals. Business-to-consumer companies followed closely with $748 million.
The report also highlighted a widening funding gap for female founders. Male-founded startups captured about 95 percent of total capital deployed, raising $1.6 billion across 213 deals. Female-founded startups raised $2.5 million through 14 transactions.
The UAE strengthened its position as MENA’s dominant startup market in the first half of the year, raising $1.2 billion across 83 deals.
Fintech was the UAE’s largest funded sector, attracting $409 million over 20 deals. Logistics followed with $300 million through two transactions, while property tech ranked third with $215 million across 13 deals.
Saudi Arabia recorded a slower first half after a record 2025, with startups in the Kingdom raising $259 million across 80 deals.
Fintech dominated Saudi Arabia’s funding landscape, accounting for $176 million across 13 startups.
The Saudi market remained largely early stage, with startups at the earliest stages raising $201 million across 69 rounds.
Egyptian startups raised $158.9 million across 29 deals in H1 2026, down 11 percent from the same period last year. Egypt recorded two later-stage rounds worth a combined $53 million.
Fintech was also Egypt’s leading sector, raising $82.3 million across seven deals. E-commerce followed with $50.2 million through three transactions.
Wamda said the first half of 2026 showed that regional uncertainty had reshaped investment decisions but had not halted capital deployment. Investors became more selective, directing funding toward mature ecosystems, proven sectors and companies with stronger fundamentals.
Think raises more than $8m in pre-seed funding
Saudi Arabia-based AI infrastructure startup Think has raised more than $8 million in a pre-seed funding round co-led by RAED Ventures and Wa’ed Ventures, with participation from Dhahran Techno Valley’s venture capital arm and strategic angel investors.
Founded in 2025 by Ahmed Al-Sharif and Ammar Enaya, Think develops an integrated AI infrastructure platform combining hardware and orchestration software.
The platform is designed to maximize graphics processing unit utilization, lower token costs and reduce the complexity of deploying AI workloads for enterprises.
The company says the round is the largest AI infrastructure and deeptech pre-seed funding round in MENA to date.
Think plans to use the capital to expand its team, scale manufacturing, accelerate product development and support deployments across Saudi Arabia, the Gulf Cooperation Council and selected international markets over the next 18 months.
Mylerz raises more than $2m
Egypt-based logistics startup Mylerz has raised more than $2 million in a funding round led by Lorax Capital Partners, with participation from Fawry and a group of existing investors.
Founded in 2019 by Samer Gharaibeh, Mylerz provides end-to-end e-commerce logistics, fulfilment and last-mile delivery services. Its technology platform enables merchants to manage shipments and logistics operations.
The company will use the proceeds to strengthen its balance sheet, finance working capital and expand its logistics infrastructure across Egypt.
The funding follows Mylerz’s $9.6 million round in 2022 and comes as the company continues to expand its domestic footprint while investing in fulfilment capacity and operational infrastructure.
ORA Technologies extends series A round to $10m
Morocco-based super app ORA Technologies has extended its series A funding round to $10 million after raising an additional $2 million from Moroccan investors.
Founded in 2023 by Omar Alami, ORA Technologies develops a consumer super app combining food delivery, digital payments and e-commerce services. The company aims to digitize everyday commerce through a unified platform.
The new funding will support the expansion of its KOUL food delivery platform and ORA Cash digital wallet across Morocco.
ORA Technologies says the full $10 million series A round was financed by Moroccan investors, making it one of the country’s largest locally funded early-stage technology rounds and highlighting the growing role of domestic capital in Morocco’s startup ecosystem.
AlMkhtar closes $100k seed round to expand in Damascus
Syrian property tech and mobility startup AlMkhtar has closed a $100,000 seed funding round led by angel investors Rani Abu-Shaar and Abdulah Al-Shamma, alongside a group of additional angel investors.
Founded in 2020 by Ayham Ksayer, AlMkhtar operates a digital marketplace connecting buyers and sellers, as well as landlords and tenants, across the real estate and automotive sectors.
The company operates through business-to-business, business-to-consumer and consumer-to-consumer models.
The funding will support AlMkhtar’s expansion across Damascus and its suburbs. The company will also use the capital to enhance its platform, launch new features to improve user experience, grow its customer base, and onboard more dealerships, rental companies and real estate developers.