13 October 2026
Startups in the UAE raised USD 1.6 billion (about AED 5.9 billion) in the first nine months of 2026, 17% more than in the same period of 2025, according to MAGNiTT data for January to September 2026 reported by EnterpriseAM on 13 October 2026. That is more than half of the roughly USD 3 billion (about AED 11 billion) raised by startups across the Middle East and North Africa (MENA), where total funding fell 7% over the same period. Close to USD 1 billion of the UAE total came from mega rounds, deals above USD 100 million each.
UAE startup funding in numbers
The UAE was the only large market in the region to grow in the first nine months of 2026. Saudi Arabia and Egypt both raised less than a year earlier.
| Market | Venture funding, January to September 2026 | Change year on year |
|---|---|---|
| UAE | USD 1.6 billion (about AED 5.9 billion) | up 17% |
| Saudi Arabia | USD 1 billion (about AED 3.7 billion) | down 29% |
| Egypt | USD 206 million (about AED 757 million) | down 20% |
| MENA total | about USD 3 billion (about AED 11 billion), 351 deals | down 7% in value, down 33% in deals |
By our calculation, a 17% rise to USD 1.6 billion means UAE startups raised about USD 1.4 billion in the first nine months of 2025. The UAE and Saudi Arabia together accounted for 68% of all regional transactions, broadly in line with 70% a year earlier. AED figures in this article are our conversion at the fixed rate of 3.6725 per US dollar.
How the result compares with the first half of 2026
The nine-month figure builds on a strong first half. In its H1 2026 review, MAGNiTT reported that UAE startup funding rose 53% to USD 895 million (about AED 3.3 billion), which was 66% of all capital raised in MENA in that period, while the number of UAE deals fell 37%. Across the region, H1 2026 funding was USD 1.35 billion across 214 deals, down 22% in value and 41% in deal count.
By our calculation, the difference between the H1 and nine-month totals means UAE startups raised roughly USD 0.7 billion (about AED 2.6 billion) in the third quarter alone.
A record for mega rounds
Large rounds explain most of the growth. Three rounds above USD 100 million closed in the third quarter and took quarterly mega-round funding to a record USD 813 million (about AED 3 billion):
- Barq, USD 329.5 million Series A;
- Moove, USD 250 million funding round;
- Tabby, USD 233 million Series F.
Over the nine months, six mega rounds raised USD 1.5 billion (about AED 5.5 billion), more than in the whole of 2025, with one quarter still to go. All six were in the UAE or Saudi Arabia: Barq (USD 329.5 million), CargoX (USD 250 million), Moove (USD 250 million), Tabby (USD 233 million), Mal (USD 230 million) and Spiro (USD 215 million). Without mega rounds, MENA funding for the nine months would be down 32% year on year.
September did most of the work. Two of the three third-quarter mega rounds were announced that month, MAGNiTT research director Farah El Nahlawi told EnterpriseAM: “After two slow summer months, September marked a rebound. It accounted for two of the quarter’s three mega-rounds and recorded the third-highest monthly deal count of 2026, supported by the return of major regional events such as LEAP and Money20/20.”
Fintech takes the largest share
Fintech remained the sector that attracts the most venture capital. Fintech startups raised USD 1.7 billion (about AED 6.2 billion) across 93 transactions, which is 58% of regional funding and 26% of all deals. Four mega rounds, Barq, Moove, Tabby and Mal, made up 60% of the sector’s nine-month total. Transport followed with USD 298 million, driven by CargoX, and manufacturing with USD 218 million, driven by Spiro.
Fewer early-stage deals, more local capital
The other side of the record is a thinner pipeline of young companies. The number of early-stage deals in MENA fell 45% year on year over the first nine months, and the total number of deals fell 33% to 351.
The source of money is also changing. MENA-based investors supplied 58% of the capital deployed in the nine months, up from 50% a year earlier and the highest share in three years. Foreign investors provided the remaining 42%, and the share of US-based investors fell from 15% to 9%. Dubai’s own vehicles are part of this shift: in October the Dubai Integrated Economic Zones Authority doubled its Oraseya Capital fund to AED 1 billion.
Exits slowed. MENA recorded 31 M&A transactions in the nine months, 26% fewer than a year earlier. MAGNiTT expects a “higher for longer” interest rate environment to weigh on venture activity through 2027.
What this means for founders and companies in the UAE
The figures do not change any rule for founders. No licence, fee or procedure is affected. They describe where the capital went: to the UAE more than to any other market in the region, to fintech more than to any other sector, and to fewer, larger rounds. Early-stage founders now compete for a smaller number of deals, and most of the money comes from investors based in the region.
For a founder preparing to raise, the company itself is part of the pitch. Investors look at where the company is registered, whether the licence covers what the product actually does, who holds the shares and whether the business has a working UAE bank account. The choice between a free zone and a mainland company is usually the first decision, and our guide to company formation in the UAE walks through the options and documents step by step.
Checklist before raising a round in the UAE
- Company registered in a free zone or on the mainland, with the structure chosen for where the product will be sold.
- Licence activities that match the product; regulated fintech activities such as payments may need a separate licence from the Central Bank of the UAE or a financial free zone regulator.
- Shareholders and share split recorded in the company’s registered documents.
- Corporate bank account open, with source of funds documents ready for incoming investment.
- Corporate tax registration with the Federal Tax Authority completed.
- Residence visas for founders and key team members.
How Atlant Capital can help
Atlant Capital helps founders and investors set up in the UAE. We handle company setup in a free zone or on the mainland, select licence activities that match the business model, prepare the corporate bank account opening file and arrange residence visas for founders and their teams. Each case is prepared on official requirements of the relevant authority.
Conclusion
UAE startups raised USD 1.6 billion in the first nine months of 2026, up 17% year on year, while MENA as a whole fell 7% to about USD 3 billion. Close to USD 1 billion of the UAE total came from mega rounds, fintech took 58% of regional funding, and MENA-based investors supplied 58% of the capital. Early-stage deal count fell 45%, so the capital is concentrated in fewer, larger rounds.
Source: EnterpriseAM, MAGNiTT.
FAQ
How much did UAE startups raise in 2026?
UAE startups raised USD 1.6 billion (about AED 5.9 billion) from January to September 2026, up 17% year on year, according to MAGNiTT data reported by EnterpriseAM. That is more than half of the roughly USD 3 billion raised across MENA. Close to USD 1 billion of the UAE total came from mega rounds above USD 100 million.
What is a mega round in venture capital?
In the MAGNiTT data, a mega round is a single funding deal above USD 100 million. MENA recorded six mega rounds worth USD 1.5 billion in the first nine months of 2026, more than in the whole of 2025. All six were in the UAE or Saudi Arabia: Barq, CargoX, Moove, Tabby, Mal and Spiro.
Which sector attracts the most venture capital in MENA?
Fintech. In the first nine months of 2026, fintech startups in MENA raised USD 1.7 billion (about AED 6.2 billion) across 93 transactions, which is 58% of all regional funding. Transport was second with USD 298 million and manufacturing third with USD 218 million.
Who invests in MENA startups?
Mostly regional investors. MENA-based investors supplied 58% of the venture capital deployed from January to September 2026, up from 50% a year earlier and a three-year high. Foreign investors provided 42%, and the share of US-based investors fell from 15% to 9%.
