MENA Fintech Funding Slips 9% to $617M as Deal Count Halves

Fintech companies across the Middle East and North Africa raised $617 million through 57 deals in the first half of 2026, according to a MAGNiTT report published Tuesday. That is 9% less than the $679 million recorded in the same stretch a year earlier. Deal count fell far harder, down 50%.

The gap between those two declines describes a market where fewer companies close rounds, but the ones that do are raising more. Transactions above $20 million accounted for 11% of all MENA fintech deals in the half. Another 33% were valued between $5 million and $20 million — the highest share recorded across those deal sizes over the period. Capital pooling into bigger cheques kept the funding total from falling in step with transaction volume.

UAE and Saudi Arabia take 85% of the money

The region's two largest markets tightened their grip. Together they accounted for 85% of MENA fintech funding, or $523 million. Their paths diverged: UAE funding rose 14% year over year, while Saudi Arabia posted a 41% decline.

Payments still lead, on fewer deals

Payment solutions stayed the most active fintech sub-industry by deal volume even after transactions in the segment dropped 45% year over year. No other sub-industry recorded more deals, which speaks to how central payments remain to the region's fintech ecosystem while overall activity contracts.

Regional money fills the gap

Regional investors made up 64% of active investors and supplied 81% of the capital deployed into MENA fintech during the six months. International participation thinned, leaving local backers with a larger relative share. MAGNiTT links the shift to growing investor selectivity and the concentration of funding in larger rounds.

The wider startup market

Fintech's half-year figures sit inside a broader pullback. MENA startups raised $1.35 billion across 214 deals in the first half of 2026, down 22% in funding and 41% in deal activity year over year. The same shape holds across the market: fewer transactions, each worth more on average.

Regional investors cushioned the wider market as well, lifting their capital deployment to a five-year high for a first half, while international participation dropped 48% year over year. MAGNiTT estimates regional investors provided 81% of the capital deployed during the period.

The prior year shows how steep the slope has become. MENA fintech companies raised $1.14 billion across 178 deals in 2025, an 80% increase in funding year over year. Fintech was the region's largest sector by both deal volume and capital, taking 26% of all MENA startup deals — the highest share on record.

That dominance carries into 2026 even as the totals shrink. What changed is the shape of the market rather than its leader: 57 fintech rounds, a smaller pot of money, and regional cheque-writers setting the terms.