Investment activity in the Middle East and North Africa (MENA) region demonstrated significant growth in June, despite a month-on-month decline attributed to regional instability, according to recent data. Startups in the region raised a total of $148.2 million across 41 deals, marking a 190 percent increase compared to the same period last year. However, startup funding dropped 76 percent from May, a shift linked to investor caution amid ongoing conflicts, including tensions involving Iran.
The United Arab Emirates led the funding rounds, with 12 startups securing $93.8 million. Egypt followed in second place, benefiting from signs of economic stabilization such as a more stable Egyptian pound and record tourism revenues, with eight companies raising $41.4 million. Saudi Arabia ranked third, recording five deals totaling $5.7 million. Morocco re-emerged in the investment landscape with a notable $5 million seed round for property technology firm Agenc. Oman exhibited activity through more numerous smaller deals, with 10 startups raising $1.3 million, reflecting the impact of local accelerator programs fostering early-stage ventures.
Sectorally, investments in Enterprise Artificial Intelligence (AI) stood out, with only two companies raising a combined $75 million. Fintech remained the most active sector by deal count, with 13 startups attracting $43.5 million. Regulatory technology amassed $15.2 million across three rounds, while property technology drew $7 million through three transactions. Early-stage companies dominated the investment landscape, with seed and Series A rounds making up the bulk of financing activity. Business-to-business (B2B) models were favored, securing $96.3 million through 27 deals, compared to less than $50 million for consumer-focused startups. Debt financing also featured alongside equity investments in smaller companies.
The region also witnessed several strategic deals and acquisitions reflecting ongoing momentum despite challenges. Saudi-based education technology firm Noon Academy acquired Almakhfi, a digital platform specializing in exam preparation, aiming to enhance its AI-powered learning ecosystem. This move follows Noon Academy’s recent $40.8 million Series B round led by Wa’ed Ventures and Raed Ventures. The acquisition is part of the company’s broader strategy to develop a comprehensive digital education platform offering personalized AI-driven learning experiences to students across Saudi Arabia.
In the deep-tech space, Saudi startup Uvera secured seed funding from investors including Morgan Stanley Inclusive & Sustainable Ventures, LAB7 (Aramco’s venture arm), and Core Vision. Uvera’s technology focuses on extending shelf life and improving supply chain intelligence for the fresh food industry by combining proprietary preservation techniques with blockchain traceability and IoT analytics. The funding will support commercial expansion and product development, with LAB7 also providing technical collaboration to enhance platform scalability and data integrity.
In Dubai, Pianno, a geospatial AI platform designed to assist solar developers, received a strategic investment from Incubayt Investments, a sustainability-focused venture fund. Pianno utilizes satellite imagery combined with local market data to identify optimal rooftops for solar installations. The funding will help accelerate the company’s international expansion and platform enhancement.
Meanwhile, Dubizzle Group announced a strategic partnership and investment in UAE-based proptech firm Takeem. The collaboration designates Bayut and Dubizzle as exclusive portals for Takeem’s Rental Guarantee solution, which protects landlords against tenant payment defaults and covers emergency maintenance. Takeem has rapidly scaled, onboarding over 100,000 rental units, aiming to introduce greater security and predictability to rental markets.
Overall, these developments illustrate continued investor confidence and diversified growth patterns in MENA’s startup ecosystem, even as geopolitical uncertainties temper short-term funding dynamics.