UAE led with $36.8 million as Egypt logged zero deals; fintech and healthtech topped sectors amid event disruption and a wait-and-see mood.
Startup funding across the Middle East and North Africa fell to $48.3 million in March 2026, marking one of the weakest months for the region in recent years, according to data reported by Wamda.
The total, raised across 17 startups, represents an 85% drop from February and a 62% decline compared to March 2025, as geopolitical tensions and market uncertainty weighed on dealmaking activity.
The slowdown coincided with escalating regional tensions, including the US-Israeli war against Iran and disruptions affecting infrastructure across the Gulf Cooperation Council, alongside postponed or subdued industry events such as LEAP tech conference.
Despite the decline, the United Arab Emirates led regional funding with $36.8 million across eight deals, followed by Saudi Arabia with $10.2 million across four transactions. Egypt recorded no deals during the month.
Elsewhere, Morocco ranked third with $1.2 million across two deals, while Qatar and Syria saw limited activity with one deal each.
By sector, fintech attracted $15.1 million across three deals, followed by healthtech with $15 million across two startups. Software-as-a-service companies raised $6.7 million across three transactions.
Consumer-focused startups accounted for $31.7 million across seven deals, while business-to-business startups secured $16.5 million across nine deals. No funding was reported for female-founded startups during the month.
Despite reduced funding levels, strategic activity continued across the region. Converted acquired Mitcha in Egypt, while Yassir expanded into adtech through the acquisition of Kawarizmi, and Qualiphi acquired Career Club to scale its AI-driven services.
