MENA startups raise $454.7M in May as funding rebounds

Startups across the Middle East and North Africa raised $454.7 million across 33 deals in May 2026, representing a 202% monthly increase and a 76% year-on-year rise, according to data compiled by Arab News. The rebound signals renewed investor confidence after a selective first quarter.

The United Arab Emirates dominated, attracting $379 million across 15 deals, largely driven by Trukker's $300 million debt financing round. Saudi Arabia ranked second with $70 million across 11 deals — a 167% increase from April. Egypt followed with three startups raising a combined $5 million, though the country's broader startup ecosystem remains the most active in North Africa.

Several individual deals stood out. Egyptian fintech MNT-Halan reached a $1.4 billion valuation after the first closing of a new round led by Al Ahly Capital, the investment arm of the National Bank of Egypt. The company, founded by Mounir Nakhla, became Egypt's first fintech unicorn in 2023 and now operates across Egypt, Turkey, Pakistan, and the UAE.

Egyptian consumer fintech Blnk raised $37.1 million in a mix of Series A equity and debt facilities to expand its point-of-sale financing network of over 3,000 merchants. UAE-based Algebra AI launched with $7 million to build customized AI-powered workflows for GCC mid-market businesses. Saudi Venture Capital also announced an investment in Khwarizmi Venture Capital Fund 2, targeting seed-to-Series A startups with at least 50% of capital allocated to Saudi Arabia.

Debt financing accounted for 66% of total capital raised, reflecting a broader trend toward structured financing instruments over pure equity dilution in the region.