Investment in the Middle East and North Africa’s startup scene slowed in June 2026, with 41 companies raising a total of $148.2 million. While this represents a 76% drop from the previous month, the figure is still a staggering 190% higher than June 2025, suggesting a more complex story of recovery and realignment is underway across the region.
Quick Facts
- Total funding reached $148.2 million in June.
- Deal activity increased to 41 transactions.
- Egypt climbed to the second-most funded market.
Behind the 76% Funding Drop
At first glance, the month-on-month decline appears sharp. However, excluding debt financing from the equation reveals a much smaller 15% dip in equity funding. This indicates a stabilizing ecosystem recovering from the regional turmoil of early 2026. Adding to this positive outlook, the number of deals actually grew from 33 in May to 41 in June, showing continued investor activity at the ground level.
Egypt’s Resurgence Reshuffles Regional Ranks
The United Arab Emirates held its top position, with 12 startups raising $93.8 million. The biggest surprise came from Egypt, which jumped to second place as eight of its startups secured $41.4 million. This comeback is fueled by signs of economic stabilization, including a steady Egyptian pound and a boom in tourism revenues.
Saudi Arabia, usually a top contender, fell to a distant third with five startups raising a combined $5.7 million. Morocco also made a notable return to the funding charts, with proptech startup Agenz securing a $5 million round. Oman demonstrated a growing grassroots movement, with 10 startups raising $1.3 million, largely driven by the country’s active accelerator programs.
Enterprise AI Captures the Spotlight
June saw a major shift in sector focus. Enterprise AI became the most funded category, with just two startups accounting for a massive $76 million in investment. Fintech remained a strong performer, holding its second-place position with $43.5 million raised across a sector-leading 13 deals. Following behind were Regtech, which attracted $15.2 million, and Proptech with $7 million in new funding.
Early-Stage and B2B Startups Drive Deals
Investor appetite was firmly focused on early-stage founders, as June recorded no later-stage equity rounds. Capital was concentrated on seed and pre-seed companies, alongside debt financing instruments.
Business-to-business (B2B) models continued to attract the lion’s share of capital, with 27 companies raising $96.3 million. In contrast, 11 consumer-focused startups raised just under $50 million.
The Widening Gender Funding Gap
The disparity in funding between male and female founders grew more pronounced. Startups led solely by women secured only $260,000 across two deals. Teams with mixed-gender founders raised $5.6 million, while male-founded startups took home the vast majority of capital, raising $142.3 million across 37 transactions.
About Wamda
Wamda is a leading entrepreneurship ecosystem enabler in the Middle East and North Africa. It provides a platform for entrepreneurs through its media arm, community programs, and a venture capital fund that invests in high-growth technology startups.
Source: Wamda
