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MENA Startups Raise $563m in January as Fintech Leads and Proptech Follows
MENA startups kicked off 2026 with a strong rebound in investment activity, raising a total of $563 million across 42 deals in January. This marked a sharp 228% increase compared to the previous month, although funding levels were still down 35% year-on-year. Debt financing remained relatively marginal, contributing just 9% of the total capital raised.
UAE leads regional investment
Funding was heavily concentrated in a few markets. The UAE emerged as the clear leader, attracting $426.3 million through 12 deals. This was largely driven by two major rounds, including Mal’s $230 million raise and Property Finder’s $170 million funding. Saudi Arabia followed with 18 startups raising a combined $56 million, while Egypt placed third with four startups securing $22.1 million.
Fintech leads startups, proptech ranks second
By sector, fintech led startups in January, with seven companies collectively raising $319.7 million. Proptech ranked second, as three startups secured $189 million. SaaS came in third, with seven startups raising a combined $17 million.
Early-stage companies dominate deal count
Funding activity continued to favor early-stage ventures. A total of 31 early-stage startups raised $66 million during the month. Only two later-stage deals were recorded, totaling $11 million, while the majority of capital went to startups that did not disclose their funding stage.
B2C startups attract most capital
Consumer-focused startups captured the bulk of investment. B2C companies raised $470.8 million across 17 deals. B2B startups recorded 19 transactions worth $43 million, while B2B2C models raised $9 million across six deals.
Gender disparity remains pronounced
The funding gap by founder gender persisted. Male-founded startups dominated activity, raising $560 million across 36 deals. Female-founded startups raised just $300,000 across three deals, while mixed-gender founding teams secured $2.2 million through three transactions.
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