RIYADH: Startups across the Middle East and North Africa raised $2.98 billion during the first nine months of the year, according to MAGNiTT, as $100 million mega-rounds generated $1.5 billion, exceeding their full-year 2025 total.
The headline figure for the first three quarters of the year saw funding fall 7 percent year on year, and removing those large transactions reveals a sharper slowdown, with capital deployed dropping 32 percent.
Deal volume also fell 33 percent to 351 transactions, while early-stage deals declined 45 percent, raising questions about the pipeline feeding later growth rounds.
The UAE and Saudi Arabia together accounted for 68 percent of transactions.
UAE funding climbed more than 15 percent to above $1.6 billion, supported by nearly $1 billion in mega-rounds, while capital raised by Saudi startups fell almost 30 percent.
Local investors represented 55 percent of the 356 active investors, their highest share in five years, although the overall investor count fell 16 percent.
MAGNiTT said the early-stage contraction could weigh on growth funding in 2027 and 2028.
Wamda and Digital Digest: Saudi Arabia drives the third quarter
Wamda and Digital Digest separately recorded $1.65 billion across 145 deals in the third quarter. Funding rose 108 percent from the preceding quarter and deal count increased 39 percent, although capital remained 63 percent below the year-earlier period.
Saudi Arabia led with about $1 billion across 62 deals, more than ten times its second-quarter total. The UAE followed with $507 million from 41 transactions, while Egypt attracted $56.4 million across 15 deals.
Fintech absorbed $1.03 billion across 35 deals, or roughly 62 percent of the quarter’s capital.
Barq, Tabby and Lendo alone raised a combined $762.5 million, highlighting the concentration behind the sector’s commanding share.
Debt contributed $441 million across 10 transactions. Meanwhile, 94 early-stage companies raised $505.4 million, against $606 million across only seven later-stage deals. Male-led startups secured 98.3 percent of all capital, leaving female-led companies with less than 1 percent.
JustAd secures $5m for international expansion
UAE advertising tech startup JustAd raised $5 million from angel investor Imad Jomaa. Founded in 2025 by Ahmed El-Sayed, it uses artificial intelligence to help businesses manage, track and analyze advertising campaigns through one platform.
Its offering includes financing that spreads campaign costs over 12 months.
The capital will support overseas expansion, local teams, product localization and partnerships, with JustAd expecting to serve customers in its first new markets in early 2027.
Foodics backs Funding Souq to widen restaurant financing
Saudi fintech Funding Souq secured a strategic investment from restaurant technology company Foodics, which became a major investor in the round.
Neither the investment’s value nor the ownership stake was disclosed.
Founded by Martin Jaouni, Funding Souq offers Shariah-compliant financing in Saudi Arabia and the UAE.
The partners will use Foodics’ restaurant data to assess borrowers, while Funding Souq targets $1 billion in SME financing over three years.
Funding Souq says its platform has attracted more than 10,000 investors.
Foodics, meanwhile, plans to deploy $100 million during the first year of Capital 2.0, its automated restaurant-financing product.
Alo Hakeem raises $165,000 to scale home healthcare
Syrian health tech Alo Hakeem closed a $165,000 pre-seed round led by EBLA Ventures, with other investors undisclosed.
Founded by Abdullatif Al-Baroudi and Albaraa Abdulsalam, the platform connects patients with licensed home healthcare providers.
The service operates in Aleppo, Damascus and Hama and targets four more governorates by the end of 2027.
Funding will strengthen its technology, provider network and team ahead of a full mobile application launch in November 2026.
Salehli lands $100,000 for expansion across Syria
Syrian home-maintenance marketplace Salehli raised $100,000 from EBLA Ventures, the investor’s fourth transaction of 2026. The round’s stage and any additional participants were not disclosed.
Founded by AbdulRhman Arnaout, Salehli connects customers with verified maintenance professionals.
It has attracted 15,000 users and 3,500 professionals and processed over 10,000 requests. Funding will add electronic payments, B2B services and more Syrian cities.
Autobia raises $12m to digitize auto-parts procurement
Saudi B2B autotech Autobia raised $12 million in a Series A round led by Artal Capital, with participation from Aljazira Capital and Aramco’s Wa’ed Ventures.
Emad Daghreri and Ahmed Al-Awfi co-founded the company in 2021.
Its platform combines auto-parts procurement, fulfilment, logistics and inventory financing.
The company will expand across Saudi Arabia, reinforce logistics infrastructure, develop dynamic pricing and scale financing. Autobia previously secured $2.5 million in seed capital in 2023.
Endeavor Catalyst closes $320m fifth fund
Endeavor Catalyst closed an oversubscribed $320 million fifth fund, its largest yet, lifting assets under management above $850 million. Around 400 limited partners participated, including founders of Nubank, Revolut, Checkout.com and Careem.
The vehicle plans to back up to 150 companies, investing $1 million to $3 million each. Since 2012, Endeavor Catalyst has backed 437 companies across 44 markets, recording 39 exits and 11 initial public offerings.
Its regional portfolio includes Nawy, Thndr, Chari, Gathern, SILQ and Tarjama. Eligible companies must be led by Endeavor-selected entrepreneurs and have secured an institutionally led funding round of at least $5 million.
COFE Tech attracts new capital ahead of potential IPO
COFE Tech secured an undisclosed investment from Abu Dhabi-based Phoenix Venture Partners, alongside co-investors including KSH Investments.
PVP founder and CEO Steve Khayat joined COFE Tech’s board to support expansion, governance and IPO preparation.
Founded by Ali Al-Ebrahim, the Saudi-headquartered company serves more than 1,000 clients across 3,000 Gulf outlets with AI-powered procurement and commerce infrastructure.
The announcement follows a $178 million valuation, with a possible listing targeted by 2029.