The startup ecosystem in the Middle East and North Africa (MENA) received a total of $326.6 million in investment in February 2026. According to the latest report published by Wamda, although there was a slowdown in investment activity compared to the beginning of the year, venture capital activity in the region continues to remain strong.

While 62 investment deals took place in February, nearly half of the investment went to startups based in the United Arab Emirates (UAE). In the UAE, 23 startups raised a total of $162.8 million, maintaining the country’s position as the most active startup hub in the region.

The UAE was followed by Saudi Arabia, where 25 startups raised a total of $87.7 million in investment. Egypt ranked third with $64 million across 6 investment rounds. A large portion of the investment volume in Egypt was driven by a single late-stage funding round.

Fintech Startups Lead

From a sectoral perspective, fintech startups maintained their leadership. Fintech companies in the region raised a total of $94.7 million across 14 funding rounds. According to experts, the strong performance of fintech is closely related to the development of digital payment infrastructure in the region, the digitization of financial services, and the growth of lending platforms.

Following fintech, the e-commerce sector once again became one of the top sectors receiving investment. In particular, Breadfast’s $50 million investment pushed the sector’s total funding to $52 million. Deeptech startups ranked third, attracting $51 million in funding across only two investment rounds.

Investment Rounds Focused on Early-Stage Startups

Another notable development in February was that investment rounds were largely directed toward early-stage startups. A total of 49 early-stage startups in the region raised $136.4 million in investment. In contrast, the absence of mega funding rounds seen earlier in the year led to a decline in the overall investment volume for the month.

The report also highlighted that investor interest was largely concentrated on B2B startups. B2B-focused startups attracted $137 million across 38 deals, while B2C startups raised $62 million in funding.

Meanwhile, the report also revealed that gender inequality in startup funding in the region continues. In February, female-founded startups did not receive any investment, while only three startups with mixed-gender founding teams raised $14 million in funding.

The MENA Startup Ecosystem Will Continue to Grow

According to experts, the temporary slowdown in investment volume does not mean that the market is weakening. It is noted that several regional venture capital funds created new investment vehicles at the end of 2025, leaving a significant amount of available capital (dry powder) in the market. This indicates that the MENA startup ecosystem will continue to grow in the long term.