Startup funding across the Middle East and North Africa more than doubled in August 2026, even as dealmaking slowed sharply, with 27 startups raising a combined $375 million.

The total was 117% higher than July and 11% above August 2025. Yet the deal count fell 40% month-on-month, highlighting how heavily the month’s performance depended on a small number of large transactions.

The biggest was Moove’s $250 million Series C, which alone accounted for two-thirds of all capital deployed in August.

Still, the composition of funding marked a significant improvement from July. Debt accounted for only about 2% of total capital in August, compared with 56% the previous month, meaning the rebound was overwhelmingly driven by equity rather than structured financing.

The UAE returns to the top

The UAE reclaimed its position as MENA’s most-funded startup ecosystem in August, overtaking Saudi Arabia, which had led the regional rankings in July.

UAE startups raised $362 million across 13 deals, accounting for nearly 97% of all capital deployed in the region during the month. The total was largely driven by Moove’s $250 million round and Fasset’s $68 million Series C.

Saudi Arabia ranked a distant second, with six startups securing a combined $10.25 million.

Egypt, traditionally one of MENA’s three largest startup markets, recorded no startup funding rounds in August. Jordan moved into third place with $2 million from a single transaction.

Capital also reached some of the region’s smaller ecosystems. Five Omani startups attracted an estimated $500,000, while Iraq recorded a disclosed $150,000 round. Bahrain registered one transaction estimated at $100,000.

Moove pushes mobility to the top as fintech slips

Moove’s megadeal propelled mobility to the top of the sector rankings, with the company’s $250 million round accounting for all funding allocated to the sector.

Fintech slipped to second place despite attracting $83.8 million across six startups. Enterprise AI ranked third, with six startups raising a combined $21 million, while healthtech companies secured $9 million across two deals.

The sector rankings again underline the extent to which a single large transaction can reshape monthly funding data, particularly when overall deal activity remains subdued.

Later-stage funding returns

August also marked the return of sizable later-stage rounds.

Moove and Fasset raised a combined $318 million through two Series C transactions, accounting for almost 85% of all capital deployed during the month.

Early-stage companies nevertheless continued to dominate by deal count, with 22 startups at pre-seed, seed and Series A stages raising a combined $38 million.

Debt financing played only a limited role during the month. Naran’s $10 million financing was announced as a mix of debt and equity, while overall debt represented about 2% of August’s total funding.

B2B startups continue to capture most capital

Business-focused startups retained their position as investors’ preferred destination, attracting $282.5 million across 15 transactions, or about three-quarters of all capital raised in August.

Business-to-consumer startups secured $87 million across six deals, while companies operating across both B2B and B2C models raised $5.5 million through another six transactions.

Funding remains overwhelmingly male-led

The gender funding gap remained pronounced.

Male-founded startups secured $361 million across 22 deals, accounting for more than 96% of all capital deployed during the month.

Female-founded startups raised $8.5 million across two transactions, while mixed-gender founding teams attracted $5.5 million through three deals.

A concentrated rebound

August delivered a substantially stronger headline than July, and the sharp reduction in debt financing provides a more encouraging signal for equity investment. But the recovery remains highly concentrated.

One company accounted for two-thirds of the month’s funding, the UAE captured almost 97% of total capital, and the number of transactions fell 40% from July.

With one month remaining in the third quarter, MENA startups have raised about $547.6 million since the beginning of July — roughly half the amount deployed during July and August 2025.

The region also continues to operate against a volatile geopolitical backdrop, with renewed US-Iran hostilities and disruptions to shipping through the Strait of Hormuz weighing on markets and investor visibility.

August therefore offers evidence that investors remain willing to deploy substantial equity into select MENA companies, but it does not yet indicate a broad-based recovery. September’s deal flow will show whether the rebound can extend beyond megadeals and translate into wider investor participation.

These monthly reports are a collaboration between Wamda and Digital Digest.