Two markets drive nearly all MENA startup funding in 2026

Middle East and North Africa startups raised $2.98 billion in 2026, with nearly 90% of the total flowing to companies in two countries. Those same markets also accounted for every funding round of $100 million or more, according to data reported by Yahoo Finance.

Regional funding declined 7% year-over-year, while the number of deals dropped by a third. The third quarter had shown a surge—StartupReader reported on October 13 that MENA funding more than doubled to $1.65 billion in Q3 2026, with one country leading—but the annual figures suggest a sharper contraction in deal volume than in total capital raised.

The dominance of these markets reflects their continued push to diversify economies, with state-backed funds and sovereign investors playing an outsized role. Earlier StartupReader coverage included a $12 million Series A for a local B2B autotech startup on October 11, a deal led by a domestic investor. Still, the concentration of capital raises questions about whether other MENA markets can sustain startup ecosystems without similar levels of support.

What’s next will depend on whether the leading markets can turn large rounds into scalable companies—or whether the rest of the region can attract more than the remaining 10% of funding.

Sources: finance.yahoo.com