A new report by Digital Digest reveals that startups across the Middle East and North Africa (MENA) secured more than $1.12 billion in funding during the first half of 2026, raised by 207 startups. The total matches funding levels recorded during the same period over the past two years, despite a slowdown in investment activity during the second quarter compared to the first.

According to the report, June alone accounted for $37.5 million in investments across 26 startups. Total funding in the second quarter (Q2) reached $261 million, distributed among 70 startups, while the first quarter (Q1) captured the majority of the capital invested since the beginning of the year.

UAE Leads Regional Funding

The United Arab Emirates ranked first in total investment value, attracting 62.6% of all startup funding, equivalent to approximately $701.1 million.

Saudi Arabia followed with 20.3% of total funding, or around $227.4 million, while Egypt ranked third with 9.9%, securing approximately $110.9 million.

Morocco accounted for 2.7% of investments, raising nearly $30.2 million, while the remaining 4.5%, or roughly $50.4 million, was distributed across other countries in the region.

Saudi Arabia Tops the Number of Funded Startups

In terms of the number of startups receiving investment, Saudi Arabia led the region with 75 funded startups, representing 36.2% of the total.

The UAE followed with 67 startups (32.4%), while Egypt ranked third with 22 startups (10.6%).

Oman came fourth with 10 funded startups (4.8%), while 33 startups from other regional markets accounted for the remaining 15.9%.

Fintech Remains the Largest Investment Sector

The report highlights fintech as the dominant investment sector, attracting 46.3% of total funding, equivalent to approximately $518.6 million.

It was followed by:

PropTech: 21.6% ($241.9 million)
E-commerce: 7.0% ($78.4 million)
DeepTech: 4.7% ($52.6 million)
Software as a Service (SaaS): 3.8% ($42.6 million)
HealthTech: 3.0% ($33.6 million)

The remaining sectors collectively accounted for 13.6% of total investments, raising approximately $152.3 million.