Search form

You are here

  • Home
  • Startup Wrap: Over $250m raised as MENA SME activity accelerates


Startup Wrap: Over $250m raised as MENA SME activity accelerates

Jehad Senan, Khalid Al-Mudayfir and Djamel Mohand, co-founders of Governata. (Supplied)
Short Url

https://arab.news/9j3xn

Updated 18 January 2026
Nour El-Shaeri
Follow

Startup Wrap: Over $250m raised as MENA SME activity accelerates

Updated 18 January 2026
Nour El-Shaeri

RIYADH: Capital continued to flow across the Middle East this week as startups spanning fintech, health tech, and data infrastructure secured fresh funding and strategic backing, underscoring sustained investor appetite for early- and growth-stage companies in the region.

Saudi-based enterprise data governance and management startup Governata raised $4 million in seed funding to scale its artificial intelligence-ready data governance platform across the Kingdom and wider MENA region.

The round included participation from Joa Capital, abtal.vc, and Sanabil Accelerator by 500 Global, as well as Sadu Capital, Plus VC, and Hyperscope Ventures.

A-Typical Ventures and Plug and Play were also involved.

Founded in 2025 by Khalid Al-Mudayfir, Jehad Senan, and Djamel Mohand, the company supports organizations in building compliant and trustworthy data foundations for enterprise AI and generative AI adoption.

The funding will be used to advance product development, strengthen AI-driven decision-making capabilities, and support regional expansion with a focus on responsible data infrastructure.

Islamic digital bank Mal secures $230m

AI-driven Islamic digital bank Mal has secured a $230 million strategic investment led by BlueFive Capital, with participation from strategic investors and family offices.

Founded by fintech entrepreneur Abdallah Abu-Sheikh, Mal is a mobile-first digital banking platform currently under development and scheduled to launch in 2026.

Based in Abu Dhabi, the company plans to begin operations in the UAE before expanding into markets across the Middle East and Asia, targeting underbanked communities globally.

The capital will be used to accelerate product development, advance licensing and regulatory processes, and support its go-to-market strategy. Mal is currently in a pre-launch phase and does not yet hold banking or financial services licenses.

Health tech Madeed raises $400k

Saudi-based health tech startup Madeed has raised $400,000 in a pre-seed funding round led by Vision Ventures, with participation from angel investors Mashhoor Al-Dubayan, Mazen Al-Darrab, and Abdulla Nadeem Elyas.

Founded in 2025 by Adam Bataineh, Madeed is developing a preventive health platform focused on early disease risk detection through advanced biomarkers and laboratory testing.

The funding will support product development, the expansion of clinical and laboratory partnerships, and the launch of the company’s first member cohort in Saudi Arabia as it moves into early commercialization.

Flooss secures $22m credit facility

Bahrain-based Shariah-compliant fintech Flooss has 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 Shariah-compliant digital financing solutions and operates under the regulation of the Central Bank of Bahrain.

The facility will be used to scale the company’s core cash financing products, support portfolio growth, and drive regional expansion while continuing to operate under regulatory supervision.

Neom selects five studios gaming accelerator funding

Neom has announced the five game studios selected to receive funding as part of the latest cycle of its flagship gaming accelerator, Level Up, making it the program’s largest cohort to date.

The accelerator, driven by Neom Gaming and aligned with Saudi Vision 2030, supports early-stage game studios through funding, mentorship, and access to global publishing partners.

The five Saudi studios selected — Aiqona Productions, Fourcast Studio, Makera, OFF BOX Studios, and Phys — will receive funding, seven months of mentorship totalling 600 hours per studio, and access to Neom’s publisher partner network, which includes Kwalee and Tamatem Games.

Khosouf Studio raises $600k

UAE-based game development company Khosouf Studio has raised $600,000 in seed funding from Merak Capital through its $81 million Gaming Fund, launched in 2024.

Founded in 2020 by Ahmad Al-Natsheh, Khosouf Studio develops narrative-driven games and immersive virtual reality experiences.

The investment will support the company’s growth as it relocates operations to Saudi Arabia, contributing to the Kingdom’s gaming ecosystem and its ambition to become a global hub for interactive entertainment under Vision 2030.

EMushrif raises $7.5m

Oman-based Internet-of-Things school management solution provider eMushrif has raised $7.5 million in a funding round led by Jasoor Ventures, with participation from Phaze Ventures and other private investors.

Founded in 2017 by Adnan Al-Shuaili, Issa Al-Shuaili, and Awadh Al-Shukaili, eMushrif offers AI- and IoT-enabled school transportation solutions and currently serves more than 120,000 students across Oman and Kuwait.

The new capital will support regional expansion, with a focus on Saudi Arabia and the UAE, while continuing investment in product development and operational capabilities.

Flat6Labs marks 6th Riyadh Seed Program demo day

Flat6Labs has hosted the sixth Demo Day of its Riyadh Seed Program, marking the completion of six accelerator cycles since the program’s launch in 2023.

Backed by F6 Ventures and supported by the National Technology Development Program, the initiative has accelerated more than 60 startups, deployed $17 million in seed funding, and unlocked $38 million in follow-on capital.

The latest cohort spans sectors including AI, fintech, health tech, enterprise software, and industrial Artificial Intelligence of Things, highlighting the breadth of early-stage innovation emerging from Saudi Arabia.

Outliers Venture Capital launches fellowship program

Outliers Venture Capital has announced the launch of the Outliers Fellowship Program 2026 in partnership with the Saudi Venture Capital Co.

The program aims to develop the next generation of founders, operators, and venture leaders across Saudi Arabia and the wider MENA region. Building on its inaugural cohort, the fellowship will deliver a structured experience in Riyadh, featuring curated sessions with founders, operators, and investors, and providing participants with exposure to high-growth technology companies.

UAE’s first live open finance payment experience launched

Financial infrastructure provider Lean Technologies and UAE payments platform Ziina have launched the country’s first live customer-initiated Open Finance payment experience under the Central Bank of the UAE’s Open Finance framework.

The launch enables Ziina users to complete instant account-to-account bank payments through regulated Open Finance APIs, marking the transition of open finance in the UAE from technical readiness to live deployment.

Lean provides the regulated infrastructure underpinning the payments, while Ziina delivers the consumer-facing experience, demonstrating the viability of production-grade open finance payments in the UAE.

MENA startup funding slows in December

Startup investment across the Middle East and North Africa softened in December, with 44 startups raising a combined $171.5 million.

The figure represents a 38 percent year-on-year decline and a 24 percent drop compared to November, reflecting a typical year-end slowdown in venture activity.

However, the headline contraction masked a shift in funding composition rather than a complete pullback in investor engagement.

Excluding debt financing from both months, December marginally outperformed November, driven by a reduced reliance on debt-led transactions.

Debt accounted for just 12.5 percent of total funding in December, signalling a return to more equity-driven dealmaking as the year drew to a close.

Saudi Arabia remained the region’s most funded market in December, with startups in the Kingdom raising $115 million across 17 rounds, accounting for 67 percent of all capital deployed during the month.

Egypt ranked second, with six startups raising $27.3 million, closing a year marked by continued funding pressure. The UAE placed third, raising $21.4 million across 15 transactions, pointing to sustained deal flow but smaller average cheque sizes.

Outside the top three markets, Algeria, Morocco, Kuwait, and Bahrain collectively attracted $7.5 million, underlining the limited volume of capital flowing into smaller ecosystems at year-end.

Sector data showed a notable cooling in fintech, which fell outside the top five funded verticals in December.

The sector ranked seventh, raising just $3.9 million across six deals. Cybersecurity led all sectors, attracting $63.4 million invested in four startups, followed by Software-as-a-Service companies, where 10 startups raised $47.9 million.

Deeptech ranked third, securing $23 million across two transactions, indicating sustained investor appetite for specialized and defensible technologies despite the broader slowdown.

By deal count, December activity was dominated by early-stage rounds. Thirty-five early-stage startups raised $35.9 million, reflecting continued investor focus on company formation and validation.

In contrast, three late-stage startups raised a combined $66.5 million, once again highlighting how a small number of large rounds can disproportionately shape monthly funding totals. A further six startups did not disclose their funding stage.

Business-to-business startups continued to attract the bulk of investment. B2B companies raised $154.7 million across 33 rounds, reinforcing investor preference for enterprise-focused revenue models.

Consumer-facing startups raised $6.3 million across five deals, while six startups operating hybrid B2B and B2C models accounted for the remaining capital.

Gender disparities in venture funding remained pronounced in the final month of the year. Female-founded startups raised just $116,000 across two deals, while mixed-gender founding teams secured $5 million through four rounds.

Topics: SME

Related

Business & Economy
Saudi SME Bank signs 8 partnership agreements worth $199m
Business & Economy
Saudi Monsha’at, NCIM ink deal to empower SMEs

World must prioritize resilience over disruption, economic experts warn

Saudi Arabia’s Finance Minister Mohammed Al-Jadaan urged policymakers and investors to “mute the noise” and focus on resilience.
Updated 23 January 2026
Nadia Al Faour
Follow

World must prioritize resilience over disruption, economic experts warn

  • Al-Jadaan said that much of the anxiety dominating markets reflected a world that had already been shifting for years
  • Pointing to Asia and the Gulf, Al-Jadaan said that some countries had already built models based on diversification and resilience
Updated 23 January 2026
Dalal Awienat Nadia Al Faour

DAVOS: Saudi Arabia’s Finance Minister Mohammed Al-Jadaan urged policymakers and investors to “mute the noise” and focus on resilience, as global leaders gathered in Davos on Friday against a backdrop of trade tensions, geopolitical uncertainty and rapid technological change.

Speaking on the final day of the World Economic Forum in Davos, Al-Jadaan said that much of the anxiety dominating markets reflected a world that had already been shifting for years.

“We need to define who ‘we’ are in this so-called new world order,” he said, arguing that many emerging economies had been adapting to a more fragmented global system for decades.

Pointing to Asia and the Gulf, Al-Jadaan said that some countries had already built models based on diversification and resilience. In energy markets, he pointed out that the focus should remain on balancing supply and demand in a way that incentivized investment without harming the global economy.

“Our role in OPEC is to stabilize the market,” he said.

His remarks were echoed by Saudi Arabia’s Minister of Economy and Planning Faisal Alibrahim, who said that uncertainty had weighed heavily on growth, investment and geopolitical risk, but that reality had proven more resilient.

“The economy has adjusted and continues to move forward,” Alibrahim said.

Alibrahim warned that pragmatism had become scarce, trust increasingly transactional, and collaboration more fragile. “Stability cannot be quickly built or bought,” he said.

Alibrahim called for a shift away from preserving the status quo towards the practical ingredients that made cooperation work, stressing discipline and long-term thinking even when views diverged.

Quoting Saudi Arabia’s founding King Abdulaziz Al-Saud, he added: “Facing challenges requires strength and confidence, there is no virtue in weakness. We cannot sit idle.”

President of the European Central Bank Christine Lagarde stressed the importance of distinguishing meaningful data from headline noise, saying: “Our duty as central bankers is to separate the signal from the noise. The real numbers are growth numbers not nominal ones.”

Managing Director of the IMF Kristalina Georgieva echoed Lagarde’s sentiments, saying that the world had entered a more “shock prone” environment shaped by technology and geopolitics.

Director General of the World Trade Organization Ngozi Okonjo-Iweala said that the global trade systems currently in place were remarkably resilient, pointing out that 72 percent of global trade continued despite disruptions.

She urged governments and businesses, however, to avoid overreacting.

Okonjo Iweala said that a return to the old order was unlikely, but trade would remain essential. Georgieva agreed, saying global trade would continue, albeit in a different form.

Georgieva warned that AI would accelerate economic transformation at an unprecedented speed. The IMF expects 60 percent of jobs to be affected by AI, either enhanced or displaced, with entry-level roles and middle-class workers facing the greatest pressure.

Lagarde warned that without cooperation, capital and data flows would suffer, undermining productivity and growth.

Al-Jadaan said that power dynamics had always shaped global relations, but dialogue remained essential. “The fact that thousands of leaders came here says something,” he said. “Some things cannot be done alone.”

In another session titled Geopolitical Risks Outlook for 2026, former US Democratic representative Jane Harman said that because of AI, the world was safer in some ways but worse off in others.

“I think AI can make the world riskier if it gets in the wrong hands and is used without guardrails to kill all of us. But AI also has enormous promise. AI may be a development tool that moves the third world ahead faster than our world, which has pretty messy politics,” she said.

American economist Eswar Prasad said that currently the world was in a “doom loop.”

Prasad said that the global economy was stuck in a negative-feedback loop and economics, domestic politics and geopolitics were only bringing out the worst in each other.

“Technology could lead to shared prosperity but what we are seeing is much more concentration of economic and financial power within and between countries, potentially making it a destabilizing force,” he said.

Prasad predicted that AI and tech development would impact growing economies the most. But he said that there was uncertainty about whether these developments would create job opportunities and growth in developing countries.

Professor of international political economy at the University of New South Wales in Australia, Elizabeth Thurbon, said that China was driving a Green Energy transition in a way that should be modeled by the rest of the world.

“The Chinese government is using the Green Energy Transition to boost energy security and is manufacturing its own energy to reduce reliance on fossil fuel imports,” she explained.

Thurbon said that China was using this transition to boost economic security, social security and geostrategic security. She viewed this as a huge security-enhancing opportunity and every country had the ability to use the energy transition as a national security multiplier. 

“We are seeing an enormous dynamism across emerging market economies driven by China. This boom loop is being driven by enormous investments in green energy. Two-thirds of global investment flowing into renewable energy is driven largely by China,” she said.

Thurbon said that China was taking an interesting approach to building relationships with countries by putting economic engagement on the forefront of what they had to offer.

“China is doing all it can to ensure economic partnership with emerging economies are productive. It’s important to approach alliances as not just political alliances but investment in economy, future and the flourishment of a state,” she said.

The panel criticized global economic treaties and laws, and expressed the need for immediate reforms in economic governing bodies.

“If you are a developing economy, the rules of the WTO, for example, are not helpful for you to develop. A lot of the rules make it difficult to pursue an economic development agenda. These regulations are not allowing the economies to grow,” Thurbon said.

“Serious reform must be made in international trade agreements, economic bodies and rules and guidelines,” she added.

Prasad echoed this sentiment and said there was a need for national and international reform in global economic institutions.

“These institutions are not working very well so we can reconfigure them or rebuild them from scratch. But unfortunately the task of rebuilding falls into the hands of those who are shredding them,” he said.

WEF attendees were invited to join the Global Collaboration and Growth meeting to be held in Saudi Arabia in April 2026 to continue addressing the complex global challenges and engage in dialogue.

Topics: WEF 2026

Related

video
Saudi Arabia
Misk youth delegates take Saudi voices to the global stage at WEF in Davos
Media
Saudi Arabia ‘ideal partner’ in shaping next wave of intelligent age, communication minister tells WEF

Latest updates

Pakistan denies canceling UAE deal, adds Islamabad airport to privatization plan
Augsburg hand Bayern Munich first Bundesliga defeat since March
NATO wants ‘automated’ defenses along borders with Russia: German general
Immigration raids in Minnesota fuel grassroots Somali activism
Djokovic wins record 400th Slam match to power on in Australia

Search form

Print Edition
Read pdf version Subscribe now
© 2026 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.