Saudi Arabia leads MENA startup funding rebound in Q3 2026

Startup investment in the Middle East and North Africa (MENA) region saw a significant rebound in the third quarter of 2026, with total funding reaching $1.65 billion through 145 deals. This represents a 108 percent increase compared to the previous quarter, though it remains 63 percent below the levels recorded during the same period in 2025.

Saudi Arabia emerged as the region's leading market, attracting approximately $1 billion across 62 transactions. Major deals were driven by the fintech sector, including notable rounds for Barq, which raised $329.5 million and reached a valuation of $1.85 billion, and Tabby, which secured $233 million with a valuation of $6.5 billion.

The funding landscape showed a shift in composition, with debt financing accounting for 26.8 percent of total investment, while non-debt funding reached $1.21 billion. Despite the quarterly growth, the recovery was concentrated among a small number of large-scale companies and markets.