Startups across the Middle East and North Africa (MENA) raised $563 million in January 2026, reflecting selective but sustained investor interest in scale-stage companies.
Startup funding across the Middle East and North Africa (MENA) reached $563 million in January 2026, according to industry data, signaling steady investor engagement even as global venture markets remain cautious.
While the figure represents a moderate start to the year rather than a surge, it highlights a key shift in the region’s funding landscape: capital is increasingly concentrating around fewer, larger deals and markets with clearer scale potential.
Saudi Arabia strengthens its lead
Saudi Arabia continued to consolidate its position as the region’s most active venture market, benefiting from sustained government-backed initiatives and growing participation from global investors.
The Kingdom’s appeal rests on:
- Large domestic market size
- Strong regulatory clarity in fintech and enterprise tech
- Vision 2030–linked demand in sectors such as logistics, payments, and SaaS
The UAE remained a close second, particularly for fintech, Web3, and cross-border platforms.
Sectoral focus narrows in MENA
Fintech once again accounted for a significant share of January’s funding, driven by demand for:
- Digital payments
- SME lending platforms
- Embedded finance solutions
Enterprise software and B2B SaaS also featured prominently, reflecting growing regional appetite for productivity, cybersecurity, and cloud-native tools serving local and international markets.
By contrast, consumer-facing and experimental Web3 projects attracted less attention, as investors prioritised revenue visibility and regulatory alignment.
Fewer deals, bigger cheques
The January data shows a familiar post-2024 pattern: deal counts remain relatively muted, but average cheque sizes are rising.
Investors are:
- Reserving capital for follow-on rounds
- Backing companies with proven traction
- Avoiding fragmented seed-stage exposure
This dynamic favors startups that have already crossed early execution risk and can demonstrate unit economics or large enterprise contracts.
Global context matters
MENA’s funding resilience stands out against a still-constrained global VC environment, where exits remain limited and late-stage valuations are under pressure.
Regional investors appear more willing to deploy capital domestically, supported by:
- Sovereign wealth participation
- Strategic corporate investors
- Government-linked funds
However, founders still face longer fundraising cycles and heightened scrutiny on governance and scalability.
What January signals for 2026
January’s $563 million haul does not indicate a return to boom conditions — but it does suggest that MENA’s venture ecosystem has entered a more disciplined phase.
For startups, the message is clear:
- Scale and defensibility matter more than speed
- Regional expansion must be capital-efficient
- Alignment with national priorities improves funding odds
As 2026 unfolds, funding momentum will likely hinge on a handful of markets and sectors rather than broad-based growth.
