UAE and Saudi Arabia account for almost 90% of $2.98 billion of startup capital raised in 2026
The two countries were also responsible for every round of $100 million or more. Regional funding fell 7%, and the number of deals dropped by a third.
The UAE and Saudi Arabia collectively accounted for nearly 90% of the $2.98 billion raised by regional startups in the first nine months of 2026, according to venture capital tracker MAGNiTT. This figure represents a 7% drop in regional funding, with the total number of deals falling by a third. Despite the overall decline, the two Gulf countries led every round of $100 million or more.
However, when big rounds are excluded, the funding landscape appears less promising, as most capital went to established fintech and logistics firms. Early-stage deals have thinned out, potentially limiting the number of companies prepared for growth rounds in 2027. Gulf investors are stepping in to fill the void left by international investors, who are hesitant due to difficulties in exiting their investments in the current market.
Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
