Middle East and North Africa (MENA) startups raised $172.6 million across 45 funding deals in July 2026, marking a 16% increase from June, according to Wamda’s latest funding report. However, overall investment remained 78% lower than July 2025, highlighting continued caution among investors. A significant portion of the month’s capital came through debt financing, which represented 56% of total funding, compared with just 11.5% a month earlier.
Saudi Arabia Leads MENA Startup Funding with $106.6 Million
Saudi Arabia returned to the top position among regional startup ecosystems after leading startups in the Kingdom secured $106.6 million across 16 deals, accounting for nearly 62% of all capital raised during the month. The UAE followed with the same number of transactions but attracted $46.6 million in funding. Syria ranked third with $10.16 million, while Egypt raised $7.25 million across eight deals. Morocco and Qatar completed the top markets with comparatively smaller investments. Together, Saudi Arabia and the UAE captured nearly 89% of all funding raised in the region during July.
The e-commerce sector emerged as the largest funding recipient, attracting 55% of total investment, driven by several large transactions. Govtech ranked second following a $15 million funding round for Whiteshield, while super apps secured third place. Despite not leading by funding value, fintech remained the most active sector by deal count, recording nine transactions worth $10.9 million. Proptech followed with eight deals totaling $11.9 million.
Early-Stage and B2B Startups Continue to Attract Investors
Early-stage startups continued to dominate investment activity. Thirty-three early-stage companies raised $49 million, while no mega deals or late-stage funding rounds were announced during the month. The report also showed that B2B startups attracted $136 million across 33 deals, representing nearly 79% of all capital deployed, reflecting investors’ continued preference for business-focused technology companies.
Gender funding disparities remained evident. Startups founded solely by women secured just $1.7 million across four deals, representing less than 1% of total funding. Male-founded startups received 97% of all capital, while mixed-gender founding teams raised approximately $3 million. According to the report, July’s results indicate a modest recovery in overall funding activity, but the regional startup ecosystem continues to rely heavily on debt financing and a limited number of large transactions as investors remain cautious.
