Saudi Arabia Leads Region's Startup Funding Recovery with a 108% Jump
Startups in the Middle East and North Africa raised $1.65 billion across 145 deals in the third quarter, a 108% increase from the previous quarter, with Saudi Arabia leading at nearly $1 billion.
Startups in the Middle East and North Africa raised $1.65 billion across 145 deals during the third quarter of 2026, according to data from the Wamda and Digital Digest platforms, marking a 108% increase over the previous quarter.
Saudi Arabia led the region's countries by raising nearly $1 billion across 62 deals, followed by the UAE in second place with $507 million across 41 deals, and Egypt with $56.4 million across 15 deals.
The financial technology (fintech) sector captured $1.03 billion across 35 deals, representing about 62% of the total capital raised in the quarter, indicating a clear concentration of investment demand around this sector.
However, funding remains 63% lower than its level in the third quarter of 2025, meaning that the current recovery has not yet returned to last year's peak, according to the same figures.
What Do These Terms Mean?
Financial Technology (Fintech): Companies offering financial services through applications and software, such as electronic payments, transfers, and digital financing.
Venture Capital: Funds invested by specialized firms into startups in exchange for an equity stake, in hopes of achieving significant returns as they grow.
Funding Deal: An agreement under which a startup receives an amount of money from one or more investors in exchange for shares or an equity stake.
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