RIYADH: Investment momentum in the Middle East and North Africa region remained steady last week, despite ongoing market uncertainty caused by the US-led conflict with Iran.
This positive momentum continues from the record $7.5 billion raised by MENA startups in 2025, which marked a 225 percent surge compared to the previous year, according to Wamda data.
A separate report released by Magnitt earlier this week revealed that Saudi Arabia’s venture capital ecosystem experienced a slowdown in the first half of 2026, with total funding reaching 219 million dollars across 72 transactions.
This represents a 74 percent year-on-year decline in funding and a 41 percent drop in deal volume compared to the first half of 2025, primarily due to the absence of mega-deals over $100 million and broader global and regional market caution.
The Kingdom maintained its strong position in the MENA region, ranking as the second-most active market by transaction volume with a 34 percent share of regional deals, consistent with the first half of the previous year.
The week also witnessed some major investments and seed rounds across various sectors, underscoring steady momentum in the MENA region amid conflicts in Iran.
SVC invests in SEEDRA Ventures
Saudi Venture Capital has invested in SEEDRA Ventures Fund II, a venture capital fund managed by SEEDRA Ventures to support early-stage, high-growth technology startups in the Kingdom, according to a press statement.
Established in 2019, SEEDRA Ventures has launched the fund to support early-stage startups operating in areas such as artificial intelligence, fintech, property tech, Software-as-a-Service, logistics, and other technology-driven sectors.
With this investment, SVC seeks to broaden Saudi founders’ access to institutional funding, consistent with its approach of backing startups from the pre-seed stage all the way to pre-initial public offering.
“Our investment in SEEDRA Ventures Fund II supports a manager focused squarely on backing Saudi technology founders at that critical stage, expanding the specialized capital available to them and reinforcing the private-sector engine of Vision 2030,” said Nora Al-Sarhan, CEO at SVC.
Haitham Al-Foraih, managing partner of SEEDRA Ventures, believes that Saudi Arabia is producing some of the most ambitious founders and compelling venture opportunities in the region.
He said: “SVC’s investment, alongside the strong demand that resulted in Fund II being oversubscribed, reinforces our conviction in the market and our ability to identify exceptional entrepreneurs early in their journey.
“Through Fund II, we will partner with founders as they scale their businesses by providing capital, expertise, and strategic access to our network, while maintaining a disciplined approach to delivering attractive long-term returns for our investors.”
SVC is an investment firm founded in 2018 and operates as a subsidiary of the SME Bank under the National Development Fund.
Reme-D raises $1.45m
Egyptian health tech firm Reme-D, which develops and manufactures molecular diagnostic solutions, has raised $1.45 million in a Pre-Series A funding round led by Anara Impact Capital.
The funding round also witnessed the participation of Global Innovation Fund, Africa Health Ventures, and other investors, according to a press statement.
Reme-D has supplied over 550,000 tests of 30 diagnostic products that it developed, across Egypt, Kenya, and Sudan. (Supplied)
The newly injected funding will be used to expand the company’s manufacturing capacity, regional footprint, and diagnostic product portfolio.
It is also expected to support the development of new diagnostics for genetic diseases and cancer, alongside expanding production capacity by tenfold.
Since 2023, Reme-D has developed and commercialized 30 diagnostic products at its manufacturing facility in Cairo and supplied over 550,000 tests across Egypt, Kenya, and Sudan.
The company supplies both public and private laboratories, hospitals, and research institutions, and its products have been used in international scientific publications. Reme-D has also filed a US patent application covering its proprietary technology.
FLOATY Studio secures $1 million
FLOATY Studio, a Saudi-based mobile game developer, has secured $1 million in funding led by Merak Capital via its Merak Gaming Fund, aiming to speed up game development and broaden its presence in international mobile gaming markets.
The new funding will help speed up the development of the company’s game lineup, enhance its production capacity, and back its global expansion plans as it works to position Saudi-created intellectual property in international markets.
The funding came via the Merak Gaming Fund, an $80 million vehicle set up to back promising gaming startups and bolster Saudi Arabia’s game development ecosystem.
The fund has earlier invested in studios such as Qwacks and Khosouf Studio, reflecting its wider aim of nurturing local talent and building game companies that can compete on the global stage.
Merak Capital stated that the investment shows its belief in FLOATY Studio’s product vision and in Saudi Arabia’s rising role as a regional center for gaming entrepreneurship.
The funding also supports the Kingdom’s wider push to build a globally competitive gaming sector by backing local studios that can produce original content for international markets.
Labby raises $10m
Syrian super app Labby has raised $10 million from a group of investors based in the UAE and Saudi Arabia.
Syrian officials have called it the country’s first direct foreign investment in a technology startup.
The deal represents an important step for Syria’s emerging startup scene, as international backers start supporting locally developed tech companies, according to a press statement.
Launched in 2024 by Mohammad Fawaz, Labby has built a super app that combines several consumer servicesinto one platform. (Supplied)
Labby plans to put the fresh capital toward speeding up the development of its technology platform, expanding its digital service offerings, upgrading its technical infrastructure, and growing its footprint across the Syrian market.
The funding is also expected to help with hiring talent and driving product innovation as the company scales.
Launched in 2024 by Mohammad Fawaz, Labby has built a super app that combines several consumer services— such as ride-hailing, food delivery, e-commerce, digital payments, and other on-demand offerings— into one platform.
Egypt’s Kuadra secures funding
Egyptian construction technology startup Kuadra has secured a funding round led by Edafa Venture Capital to accelerate the growth of its unified AI-powered platform for managing the entire construction project lifecycle.
Founded by Ahmed Salem, Kuadra builds AI-driven workflow automation tools for contractors.
Its latest platform aims to handle the full project lifecycle by automating procurement and project management, analyzing tender documents, extracting technical specifications, assigning work packages to suppliers and subcontractors, and assessing bids through a single AI system, according to a press statement.
The statement added that the platform reduces tender review from days or weeks to just hours by automatically generating structured summaries of project requirements, including material specifications, dimensions, brands, and country of origin.
The new funding will also enable Kuadra to deepen strategic partnerships with leading construction firms and extend its AI capabilities into related sectors such as oil and gas, supporting its regional expansion.
