Startup funding across the Middle East and North Africa (MENA) fell in February 2026, with companies raising $326.6 million through 62 deals, according to data from Wamda and Digital Digest.
The amount raised dropped 42% from January 2026 and was 38% lower than the same month a year earlier, reflecting a shift toward smaller, early-stage transactions and the absence of large “mega” deals.
Debt financing made up 16% of the total funding, suggesting that most startup investments during the month were equity-based.
The United Arab Emirates led the region in fundraising, attracting $162.8 million across 23 startups. Saudi Arabia ranked second with $87.7 million invested in 25 startups, followed by Egypt with $64 million raised through six deals.
By sector, fintech secured the largest share of capital in February, drawing $94.7 million across 14 deals. E-commerce followed with $52 million across three deals, while deeptech startups raised $51 million through two transactions.
All funding during the month went to startups led by male founders or mixed-gender teams, with no female-founded companies receiving investment.
Investors also showed a strong preference for business-to-business (B2B) startups, which attracted $137 million in funding, compared with $62 million for business-to-consumer (B2C) ventures.
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