Startup Funding in the Region Jumps 108%, and Saudi Arabia Reclaims Top Spot

A quarterly report released by Wamda platform showed that startup funding in the Middle East and North Africa region reached $1.65 billion during the third quarter of 2026, distributed across 145 deals. This figure represents a 108% growth over the previous quarter, but is about 63% lower than the same period in 2025.

Wamda stated that Saudi Arabia reclaimed the lead among regional markets in attracting funding, driven by large rounds in the digital finance sector, while the number of deals remained concentrated in a limited number of companies.

In contrast, MAGNiTT platform estimated third-quarter funding at approximately $1.396 billion across 119 deals, noting that the total for the first nine months of 2026 declined by 7% year-on-year.

The discrepancy between the two figures highlights a difference in deal calculation methodology between the two sources, while both agree that liquidity is flowing to fewer companies with higher values per deal.

What do these terms mean?

Funding round: An investment in which funds and investors enter a startup in exchange for a share of its stock.

Venture capital: Funds injected into high-risk, fast-growing startups in exchange for an ownership stake.

Year-on-year: Comparing a period of time with the same period from the previous year to measure real growth.

Deal: A single investment agreement in which one or more investors enter a company.