Funding for startups across the Middle East and North Africa (MENA) declined in February 2026, with capital raised totalling $326.6 million across 62 deals, according to Wamda and Digital Digest.

The capital deployed during the month was down by 42% compared to January 2026 and 38% less than the year prior, as the region saw a shift toward smaller, early-stage deals and a lack of mega deals.

Debt financing accounted for 16% of the total capital, indicating that the majority of the startup funding was equity-based.

The UAE led the fundraising in the region, securing a total of $162.8 million spread across 23 startups.

Saudi Arabia came second with investments in 25 startups reaching $87.7 million, while Egypt followed with $64 million across six deals.

Among the sectors, fintech attracted the most capital in February with $94.7 million across 14 deals. E-commerce attracted $52 million across three deals, while deeptech raised $51 million across two deals.

All the funds raised went to male-led or mixed-gender teams, while no female-founded startups received any capital during the month.

Investors also heavily favoured business-to-business models (B2B), which recorded $137 million, compared to just $62 million for B2C. 

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com