MENA Records $1.7 Billion Across 242 Rounds in H1 2026, Down 18%

The Middle East and Africa (MENA) region recorded $1.7 billion in funding distributed across 242 investment rounds during the first half of 2026, representing an 18% year-on-year decrease compared to the same period last year.

However, the picture appears more positive when looking at monthly trends, as the region registered a 74% surge in August 2026 compared to August 2025, indicating that the decline in the first half reflects a seasonal delay rather than a structural weakness.

Saudi Arabia and the UAE lead the regional investment landscape, while countries such as Egypt, Jordan, and Morocco are striving to enhance their investment environments to attract international and regional venture capital.

Analysts point out that the drop in overall figures for the first half is partly tied to the impact of high global interest rates on investor risk appetite. Conversely, they believe that accelerating momentum in the second half puts the region on track to achieve an annual total exceeding expectations set at the start of the year.

What do these terms mean?

Structural decline: A permanent reduction in economic activity resulting from radical changes in market structure, differing from seasonal decline which is temporary and tied to predictable cyclical factors.

Interest rates: The cost a borrower pays to obtain funds, which typically rises during times of inflation. Higher rates discourage investment in high-risk assets such as startups.

Risk appetite: The degree of willingness among investors to accept potential losses in exchange for achieving high returns. This appetite declines during periods of economic uncertainty, leading to a drop in startup investments.