Saudi Arabia Returns to the Lead as Middle East Startup Funding Jumps 108%

Middle East startups raised $1.65 billion across 145 deals during the third quarter of 2026, according to data from Wamda platform, boosting funding by 108% compared to the second quarter, although it remains roughly 63% below its Q3 2025 level.

Saudi Arabia reclaimed top spot in the market after its companies raised nearly $1 billion spread across 62 deals, reflecting a rebound in Saudi activity to the forefront of the regional scene following a relative decline in the previous period.

Fintech companies captured $1.03 billion, accounting for about 62% of total funding, while female-led startups secured only $12.7 million, representing less than 1% of the capital.

This performance indicates that regional startup funding is trending upwards on a quarterly basis, but has not yet returned to the 2025 pace, prompting investors to track the sectors attracting the largest share of capital.

What do these terms mean?

Venture Capital: Funds invested by specialized funds and investors in high-risk startups in exchange for an equity stake, in the hope of their growth and later sale for profit.

Fintech (Financial Technology): Companies providing financial services through technology, such as payments, transfers, and digital financing.

Funding Round: A stage in which a startup raises capital from investors in exchange for an equity stake.