MENA Startups Raise Funding Despite Market Uncertainty And Conflict

[Abdulwahid]

Startups across the Middle East and North Africa (MENA) region continued to attract funding last week, even as market conditions remain uncertain due to the ongoing conflict involving Iran. Despite these challenges, investors are still showing interest in different sectors, proving that the startup ecosystem in the region remains active and resilient.

However, the impact of the conflict has been noticeable. In the first quarter of 2026, total startup funding in the region dropped to $941 million. This represents a 21.5 percent decrease compared to the previous quarter and a 37 percent decline compared to the same period last year, according to data from Wamda.

Among the countries, the United Arab Emirates led the region with $652.8 million in funding. Saudi Arabia followed with $156.7 million, while Egypt secured $86 million. Other countries like Morocco and Bahrain also attracted smaller investments of $22.6 million and $22 million respectively.

In March alone, the MENA startup ecosystem raised just $48.3 million, marking a sharp drop of 85 percent from February and a 62 percent decline compared to last year. Still, the UAE remained the top funding hub with $36.8 million raised, while Saudi Arabia followed with $10.2 million.

One notable deal was by Jozo, a Saudi-based property technology startup, which secured $2.2 million in seed funding. The investment was led by Sheikh Hamad Bin Saedan Real Estate Co.. Founded in 2024, Jozo focuses on real estate tokenization, allowing people to own small shares of property digitally while following Saudi regulations.

Another key funding round came from INVIA, a fintech startup based in Egypt, which raised $1.2 million from investors. Founded in 2023, INVIA provides an AI-powered financial system designed to help small and medium-sized businesses manage their operations more efficiently. The company plans to expand its services by adding features like HR, POS, and CRM tools to create a complete business management platform.

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