Startups across the Middle East and North Africa (MENA) secured $454.7 million in funding during May, marking a sharp 202 percent increase from April and representing a 76 percent rise compared with the same month last year. The surge signals a gradual recovery in the region’s startup investment landscape, driven primarily by debt financing, which accounted for two-thirds of the capital raised.

In total, 33 deals were completed in May, a moderate increase in deal activity relative to April. However, year-over-year comparisons reveal a more cautious investor approach, with the number of transactions declining by 57 percent from May 2025. This trend suggests a preference for larger funding rounds and later-stage companies amid ongoing regional and macroeconomic uncertainty.

The United Arab Emirates emerged as the dominant market, attracting $379 million across 15 deals. This total was largely bolstered by Trukker’s $300 million debt round, which made up nearly 80 percent of the UAE’s funding for the month. Saudi Arabian startups followed, raising $70 million in 11 deals—a 167 percent jump from April—while Egypt’s ecosystem remained active with three startups securing a collective $5 million.

By sector, logistics led funding value, primarily driven by Trukker’s financing. Fintech came in second, raising $105.7 million across five deals, followed by human resources technology, which captured $75 million through two transactions. Software-as-a-service (SaaS) was the most frequently funded sector, recording seven deals totaling $1.8 million.

Debt instruments dominated May’s funding landscape, accounting for $300.5 million from two transactions. Later-stage startups attracted notable attention as well, with two series B rounds yielding a combined $68.4 million. Early-stage companies, including those in pre-seed, seed, and series A stages, raised $52.2 million across 21 deals.

Business-to-business (B2B) startups remained the primary recipients of investment, securing $371.5 million through 29 deals. Consumer-focused ventures raised $85.7 million in six deals, with the remaining capital flowing to companies operating in hybrid B2B and business-to-consumer (B2C) markets.

Despite the funding growth, capital allocation remained heavily concentrated among male-founded startups, which raised $442 million across 28 deals. Startups founded solely by women received approximately $200,000 across two deals, while mixed-gender founding teams secured around $12 million in three transactions.

In the broader context, MENA startups have amassed roughly $1.5 billion in funding during the first five months of 2026.

Several individual companies made headlines with new funding rounds in May. UAE-based Algebra AI, an artificial intelligence transformation company founded by Anis Harb, announced a $7 million raise from investors including Infinity Constellation, BECO Capital, Silicon Badia, and Waseel Investments. Algebra AI focuses on delivering tailored AI-powered workflows to mid-market businesses across sectors such as financial services, food and beverage, manufacturing, and distribution, and intends to expand its presence throughout the Gulf Cooperation Council (GCC).

Similarly, UAE gifting platform Zuvees raised $1.6 million from IvyCap Ventures during its ongoing series A round. Founded in 2024 by Vijaykumar Ghadge and Abhishek Daiya, the company offers an AI-enabled cross-border gifting service targeting both individual and corporate customers and plans to scale its regional and international operations.

Egyptian fintech Blnk secured $37.1 million comprising $12.5 million in series A equity and $24.6 million in local debt financing to broaden its point-of-sale financing solutions. Founded in 2021 by Amr Sultan and Tarek Elsheikh, Blnk works with over 3,000 merchants to provide AI-driven consumer credit products and plans to enhance access to financing across Egypt with the new capital. The equity portion of the round was led by Algebra Ventures, with participation from SANAD Fund for MSME, Endeavor Catalyst, and Emirates International Investment Company.