Begin-up funding throughout the Mena area slowed in February 2026 after a stronger begin to the yr, however the UAE additional strengthened its place because the area’s dominant enterprise capital hub, attracting practically half of all funding deployed throughout the month.
Begin-ups throughout Mena raised $326.6 million by means of 62 offers in February, representing a 42 per cent decline from January and a 38 per cent drop in contrast with the identical interval final yr. Analysts say the decline largely displays the absence of mega offers somewhat than a retreat by traders, with early-stage funding persevering with to drive deal exercise.
Regardless of the month-to-month slowdown, the UAE stood out because the clear centre of enterprise capital within the area. A complete of 23 UAE-based start-ups secured $162.8 million in funding in February, accounting for nearly half of all capital invested throughout Mena.
Saudi Arabia ranked second, with 25 start-ups elevating $87.7 million, whereas Egypt positioned third with $64 million raised from six offers, largely pushed by a single late-stage funding.
Trade knowledge reveals that the UAE and Saudi Arabia have more and more dominated the regional enterprise capital panorama. In response to enterprise intelligence platform MAGNiTT, the 2 markets collectively attracted round $3.13 billion in investments in 2025, accounting for the overwhelming majority of capital deployed throughout Mena.
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The UAE’s robust place displays years of coverage initiatives geared toward constructing a globally aggressive know-how and innovation ecosystem. Programmes comparable to Abu Dhabi’s Hub71, Dubai’s innovation clusters and a rising community of enterprise funds and accelerators have created a beneficial atmosphere for start-ups and traders.
Abu Dhabi’s know-how ecosystem has grown quickly in recent times, with Hub71 start-ups alone securing $2.17 billion in funding as of 2024, highlighting the size of capital flowing into the nation’s innovation financial system.
Consultants say the UAE’s built-in funding atmosphere, pro-business laws and world connectivity have made it a pure gateway for entrepreneurs in search of to scale throughout the Center East, Africa, and South Asia.
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“The UAE continues to attract international founders and investors because of its supportive regulatory framework and strong access to capital,” mentioned a start-up consultancy. It famous that Abu Dhabi’s ecosystem has climbed quickly in world rankings as innovation initiatives acquire momentum.
The UAE’s ecosystem has expanded rapidly in recent times, with greater than 5,600 start-ups registered throughout the nation by mid-2024, reflecting its place because the main incubator for entrepreneurial ventures within the Gulf.
Sector tendencies in February continued to mirror the area’s digital transformation priorities. Fintech remained probably the most engaging sector for traders, drawing $94.7 million throughout 14 offers. The sector’s resilience displays robust demand for digital funds, lending platforms and monetary infrastructure as economies throughout the area speed up digitalisation.
Synthetic intelligence and superior applied sciences are additionally drawing rising investor curiosity. MAGNiTT knowledge reveals that AI-related ventures are capturing a rising share of enterprise capital, with the UAE receiving greater than 60 per cent of AI start-up funding throughout Mena in 2025 as traders concentrate on scalable applied sciences.
E-commerce additionally re-emerged as a significant funding vacation spot in February, attracting $52 million throughout three offers, largely pushed by Breadfast’s $50 million pre-Collection C funding spherical.
Deeptech ranked third, securing $51 million throughout solely two transactions, underscoring the capital-intensive nature of those ventures whereas highlighting sustained investor curiosity in superior applied sciences.
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February’s funding exercise was dominated by early-stage start-ups somewhat than massive development rounds. A complete of 49 corporations raised $136.4 million, suggesting traders stay eager to again innovation however are deploying capital extra selectively amid world financial uncertainty.
Enterprise-focused start-ups continued to draw the biggest share of funding. B2B corporations accounted for 38 of the 62 offers accomplished throughout the month, elevating $137 million in whole funding. Compared, B2C start-ups secured $62 million throughout 18 offers, whereas the rest went to companies working hybrid fashions.
Regardless of robust momentum in enterprise exercise, the funding hole for feminine entrepreneurs remained a priority. Begin-ups based solely by ladies didn’t safe any funding in February, whereas solely three mixed-gender founding groups raised capital, collectively attracting $14 million.
Analysts say addressing gender disparities in enterprise funding will likely be important to unlocking the total potential of the area’s start-up ecosystem.
In response to trade consultants, enterprise capital exercise throughout Mena is anticipated to stay resilient regardless of periodic volatility. A number of regional enterprise funds closed new funding autos towards the tip of 2025, leaving substantial capital out there for deployment within the coming quarters.
Whereas geopolitical tensions and world financial uncertainty might often gradual funding cycles, the UAE’s dominant position because the area’s start-up funding hub seems firmly entrenched.
