Rabat – The Middle East and North Africa (MENA) startup ecosystem began 2026 with a strong rebound, signaling renewed investor confidence after a slowdown at the end of 2025.
In January, startups across the region secured $563 million in funding, a jump of 228% from December, though still 35% below January 2025, reflecting a recovery that remains uneven.
UAE leads investment, Morocco strengthens its position
Data from Wamda shows that this total came from 42 deals, with the United Arab Emirates (UAE) capturing the largest share. The country completed 12 deals totaling $426 million, more than three-quarters of regional investment. Saudi Arabia followed with 18 deals worth $56 million, representing 13% of the total.
Egypt and Bahrain each closed a single deal worth $22 million, while Morocco secured $17 million across two deals, surpassing Qatar ($10 million), Oman ($7.5 million), Jordan ($1 million), and Syria ($100,000).
Fintech tops sector investment, inclusion remains limited
Sector analysis confirms the dominance of fintech, which captured 56% of total investment, followed by proptech at 33.5%. Funding focused mainly on equity ($435 million) and debt ($50 million), while seed-stage startups raised $32 million over 12 deals, averaging $2.5 million per deal.
Investment in female-led startups remains low. Ventures led exclusively by women received $300,000, and co-led teams raised $2 million, compared with $560 million for male-led startups.
In terms of business models, 17 deals targeted consumers (B2C), 19 focused on businesses (B2B), and 6 adopted hybrid B2B2C models.
Overall, January’s figures point to a renewed, though still cautious, confidence in the MENA startup ecosystem. Strong investment flows in the Gulf continue to shape the regional landscape, while North African markets gradually assert their place within it.
Morocco’s $17 million raised at the start of the year reflects this broader movement, confirming the country’s steady integration into regional startup networks and its growing appeal to investors looking beyond the traditional hubs.