MENA Startups Raise $289M in May as Egypt Leads with $125M — Fintech Dominates
Startups across the Middle East and North Africa raised $289 million across 44 deals in May 2026, a 25% increase from April and 2% growth year-on-year, according to Arab News. Egypt led regional fundraising with $125 million, significantly boosted by Nawy's $75 million round alongside seven other deals totaling $50 million.
The UAE followed with $86.7 million from 14 deals, while Saudi Arabia secured $69 million through 15 transactions. Kuwait made a rare top-four appearance with two startups raising a combined $6 million. Early-stage funding dominated the month at $161 million, with B2B startups attracting $157 million across 29 deals.
Fintech maintained its position as the top-funded sector, drawing $86.5 million through 14 rounds. Property tech followed, buoyed by Nawy's mega-round, while media tech firms raised $32 million and construction tech firm WakeCap secured $28 million in a notable later-stage deal.
Notably, despite the hype around AI — fueled by a recent high-profile visit from US tech executives to the region — AI startups attracted just $25 million across two deals, highlighting a significant gap between public narrative and actual capital flows. The gender gap persisted, with male-founded teams receiving 82% of total capital versus 7% for women-led firms.
Egypt's resurgence to the top of MENA fundraising is a strong signal that the country's startup ecosystem is recovering despite macro headwinds. However, the AI funding gap versus hype is striking — the region talks AI but still invests primarily in fintech and proptech.
Which country led MENA startup funding in May 2026?
Egypt led with $125 million, boosted by Nawy's $75 million round, followed by the UAE ($86.7M) and Saudi Arabia ($69M).