MENA startups raise $1.7 billion in H1 2026 despite regional uncertainty
The Middle East and North Africa's startup ecosystem attracted $1.7 billion across 242 funding rounds during the first half of 2026, as investors continued deploying capital despite one of the region's most volatile geopolitical periods in recent years. While total funding declined 18% from the $2.1 billion raised in H1 2025, the underlying composition of capital suggests a more measured market rather than one in retreat.
Deal volume fell more sharply, down 28% year on year, reflecting greater investor selectivity and fewer transactions. At the same time, the market became less dependent on debt financing. Debt accounted for 29% of total capital raised during H1 2026, compared with 44% a year earlier, indicating that equity investment represented a larger share of overall funding.
Rather than signalling a broad contraction, the first half of the year reflected a market recalibrating amid heightened regional uncertainty, with capital increasingly concentrated around larger ecosystems, established sectors and companies with clearer paths to scale.
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