Capital continued to flow across the Middle East as startups in fintech, health tech, data infrastructure, and gaming secured fresh funding, highlighting sustained investor confidence in early- and growth-stage ventures across the region.
Saudi-based enterprise data governance startup Governata raised $4 million in seed funding to expand its AI-ready data platform across Saudi Arabia and the wider MENA market. Founded in 2025 by Khalid Al-Mudayfir, Jehad Senan, and Djamel Mohand, the company helps organizations build compliant, trustworthy data foundations for enterprise and generative AI adoption. The round included Joa Capital, abtal.vc, Sanabil Accelerator by 500 Global, Sadu Capital, Plus VC, Hyperscope Ventures, A-Typical Ventures, and Plug and Play.
AI-driven Islamic digital bank Mal secured a $230 million strategic investment led by BlueFive Capital. Founded by Abdallah Abu-Sheikh and based in Abu Dhabi, the mobile-first bank is scheduled to launch in 2026, starting in the UAE before expanding across the Middle East and Asia. The capital will fund product development, licensing, and its go-to-market strategy.
Saudi health tech startup Madeed raised $400,000 in a pre-seed round led by Vision Ventures, with participation from angel investors. Founded in 2025 by Adam Bataineh, Madeed is building a preventive health platform centered on early disease detection using advanced biomarkers and laboratory testing. The funding will support product development, partnerships, and early commercialization in Saudi Arabia.
Bahrain-based Shariah-compliant fintech Flooss secured a $22 million credit facility structured by Shorooq, marking the Kingdom’s first private asset-backed financing structure. Founded in 2022 by Fawaz Ghazal, Flooss provides digital Islamic financing under Central Bank of Bahrain regulation and will use the facility to scale core products and expand regionally.
Neom announced five Saudi game studios—Aiqona Productions, Fourcast Studio, Makera, OFF BOX Studios, and Phys—selected for funding under its Level Up gaming accelerator. The seven-month program offers 600 hours of mentorship per studio and access to global publishing partners, aligning with Vision 2030’s goal of building a world-class gaming ecosystem.
UAE-based Khosouf Studio raised $600,000 in seed funding from Merak Capital’s $81 million Gaming Fund. Founded in 2020 by Ahmad Al-Natsheh, the studio develops narrative-driven games and immersive VR experiences. The investment supports its relocation to Saudi Arabia and growth within the Kingdom’s gaming sector.
Oman-based IoT school management provider eMushrif raised $7.5 million in a round led by Jasoor Ventures. Founded in 2017, the company serves more than 120,000 students in Oman and Kuwait with AI- and IoT-enabled transport solutions. The funding will support expansion into Saudi Arabia and the UAE.
Flat6Labs hosted the sixth Demo Day of its Riyadh Seed Program, which has accelerated over 60 startups since 2023, deploying $17 million in seed funding and unlocking $38 million in follow-on capital. The latest cohort spans AI, fintech, health tech, enterprise software, and industrial AIoT.
Outliers Venture Capital launched the Outliers Fellowship Program 2026 in partnership with the Saudi Venture Capital Co., aimed at developing the next generation of founders and venture leaders across Saudi Arabia and MENA.
In the UAE, Lean Technologies and Ziina launched the country’s first live customer-initiated Open Finance payment experience under the Central Bank’s framework, enabling instant account-to-account payments through regulated APIs.
Despite a year-end slowdown, MENA startups raised $171.5 million in December across 44 deals. Saudi Arabia led with $115 million, followed by Egypt and the UAE. Cybersecurity, SaaS, and deeptech dominated sector funding, while B2B startups captured the majority of capital. Gender disparities persisted, with female-founded startups raising only $116,000 during the month.
