Startups in the Middle East and North Africa raised only around $40 million in October 2026, compared with $1.1 billion in September, a 96% decline in one month. That is the finding of the monthly barometer published on November 9 by specialist outlet Wamda with Digital Digest. The cause is not an investor exodus but the complete absence of large funding rounds, which shows how dependent the region is on a handful of giant deals.
A mostly statistical collapse
According to Wamda, 32 startups announced a raise in October, while the barometer had counted 73 deals in September, a 56% drop in the number of deals. Year on year, the fall is almost as steep: in October 2025, the region had attracted $784.9 million according to the same count, which puts October 2026 down 95%.
September, however, made for a very flattering comparison. Three Saudi fintech deals had totaled $762.5 million, nearly 70% of the monthly amount: a $329.5 million Series A for Barq, a $233 million Series F for Tabby and $200 million in debt financing for Lendo, according to the same outlet’s September report. In October, Wamda recorded no late-stage growth round and no megadeal. The report’s author, Nesma Abdel Azim, describes a sharp correction that does not on its own sum up the state of the market, and stresses that the region has not seen a complete withdrawal of investment. According to Wamda, startups in the region still raised around $3.4 billion over the first ten months of 2026.
Saudi Arabia and the UAE account for almost everything
The country ranking confirms the Gulf’s dominance. According to Wamda:
- Saudi Arabia: $18.8 million for 9 startups, or 47% of the total;
- United Arab Emirates: $12.9 million for 10 startups, the highest number of deals;
- Qatar: $5 million for a single deal;
- Egypt: $1.7 million for 6 startups, after $49.2 million in September;
- Kuwait, Jordan and Syria: less than $1 million each.
The top two countries alone account for nearly 80% of the funds, again according to Wamda. The Maghreb is absent: the October ranking does not cite any Moroccan, Algerian or Tunisian startup. Egypt, which had benefited in September from the $35 million raised by fintech Paymob, falls back to a very low level.
Autobia, a single deal for nearly a third of the month
The month’s biggest raise was by Autobia, a Saudi business-to-business auto parts platform, which closed a $12 million Series A. According to The Startup Scene, the round was led by Artal Capital, with Aljazira Capital and Wa’ed Ventures. Founded in 2021 by Emad Daghreri and Ahmed Alawfi, the company connects retailers and wholesalers with verified suppliers, handles delivery and allows stock to be bought with deferred payment. The funds are to be used to cover the whole kingdom, strengthen logistics, develop its dynamic pricing tool and expand its buy-now-pay-later inventory offering.
This single deal represents 30% of October’s regional total and around 64% of Saudi Arabia’s, according to Wamda. It makes automotive the month’s top sector by value. Fintech comes second with nearly $10 million spread across five startups, while remaining the most active sector by number of deals; digital advertising follows with the $5 million raised by Emirati company JustAd.
What this dip reveals
According to Wamda, the breakdown by stage shows a market reduced to early-stage funding: $33.7 million, or more than 84% of the funds, went to 24 early-stage deals, and no late-stage raise was announced. B2B models captured nearly 86% of the amounts. The gender gap remains extreme: startups founded by men received 99.5% of the funds, female or mixed teams $200,000 between them.
For founders, the lesson is twofold. The region’s monthly totals depend on a few Saudi megadeals, and a month without them makes the total melt away; these barometers should therefore be read over several months rather than month to month. But the absence of late-stage rounds for an entire month comes against a tougher backdrop. In an op-ed published by Wamda on October 26, Sayed Adnan, chief commercial officer of Graystone Capital, noted that equity funding had fallen 22% year on year in the first half of 2026, to $1.35 billion, and that international investors had cut their deployments by nearly two-thirds. He urged growing startups to match their financing to their needs: debt to finance receivables, recurring revenue or equipment, with equity reserved for growth bets. November’s figure will show whether October was just an air pocket.
Frequently asked questions
Why did MENA startup funding fall 96% in October 2026?
Because September had been inflated by three Saudi fintech deals worth $762.5 million, while October had no megadeal at all. The number of deals fell 56%, far less than the amounts.
Which country raised the most in October 2026?
Saudi Arabia, with $18.8 million for nine startups, ahead of the United Arab Emirates ($12.9 million for ten startups), according to Wamda.
Did the Maghreb record any raises in October?
No startup from Morocco, Algeria or Tunisia appears in Wamda’s October count, whose country breakdown cites only seven countries: Saudi Arabia, the UAE, Qatar, Kuwait, Egypt, Jordan and Syria.
Sources
- MENA startup funding plunges 96% to $40 million in October 2026 as megadeals dry up — Wamda, 2026-11-09
- MENA startup funding surges to $1.1 billion in September 2026 — Wamda, 2026-10-07
- MENA's scaleups have a capital stack problem — Wamda, 2026-10-26
- Saudi Auto Parts Startup Autobia Raises $12 Million Series A — The Startup Scene, 2026-10-11