MENA Startups Raise $375 Million in August, but North Africa Misses the Rebound

Rabat – The MENA startup scene recorded a sharp recovery in August, with startups across the region raising $375 million. Yet the headline figure hides a less encouraging reality for North Africa: Morocco, Egypt, and Tunisia did not record a single deal during the month.

According to data from Wamda and Digital Digest, 27 startups secured funding in August. The total marked a strong rebound, but most of the capital came from just a few large transactions. The biggest was a $250 million Series C round for mobility startup Moove, which alone accounted for about two-thirds of the region’s total.

The concentration of capital was even clearer at the country level. Startups in the United Arab Emirates raised $362 million through 13 deals, giving the country almost 97% of all MENA startup funding for the month. Saudi Arabia followed with $10.25 million across six startups, while Jordan ranked third with $2 million.

Oman, Iraq, and Bahrain also appeared in the figures, although their contributions remained modest.

For North Africa, however, there was nothing to report.

Egypt, one of the region’s established startup markets, recorded no funding deal in August. Morocco and Tunisia were also absent from the monthly rankings. Algeria, Libya, and Mauritania, which have a much smaller presence in regional venture capital data, likewise recorded no deals.

The contrast with the Gulf is hard to ignore. While Abu Dhabi, Dubai, and Riyadh continue to attract large pools of venture capital, North African founders face a market where access to major investors remains more limited. The gap reflects more than the size of individual funding rounds. It also points to differences in financial networks, investor access, corporate infrastructure, and the ability of startups to scale across regional markets.

Still, one quiet month should not be enough to conclude that Morocco, Egypt, or Tunisia have lost their position in the regional startup ecosystem. Funding data can change sharply from one month to the next, especially when a single mega-deal has such a large effect on the overall figures. The August results are therefore better read as a warning sign than as evidence of a definitive decline.

One mega-deal reshapes the market

Moove’s $250 million Series C round placed mobility at the top of MENA’s sector rankings. The company’s latest raise alone exceeded the combined funding secured by most other sectors during the month.

Fintech came next, with six startups raising $83.8 million. Enterprise AI attracted $21 million across six deals, while healthtech companies secured $9 million.

The figures also show a return of large late-stage deals. Moove and fintech company Fasset raised a combined $318 million through Series C rounds.

Yet most of the month’s activity remained at the earlier stages of the startup cycle. Pre-seed, seed, and Series A startups accounted for 22 of the 27 deals, although they raised only $38 million in total.

That divide highlights one of the region’s central challenges: capital exists, but it remains concentrated among a relatively small group of companies that have already reached significant scale.

Gulf capital pulls further ahead

The UAE’s dominance in August was not simply the result of a larger number of deals. The country’s position was amplified by its ability to host companies capable of securing very large rounds.

That creates a powerful advantage for Gulf ecosystems. Large funding rounds attract international investors, deepen local venture capital networks, and give successful startups greater capacity to expand into neighboring markets. Over time, that cycle can reinforce the position of already established hubs.

North African markets have made progress in recent years, particularly Morocco, Egypt, and Tunisia. But their ecosystems remain smaller and face greater difficulty in attracting the type of late-stage capital that can transform a promising startup into a regional player.

August’s figures bring that imbalance into sharp focus.

Gender gap remains severe

The regional funding picture also reveals a persistent gender divide.

Startups founded by men received $361 million, or more than 96% of the total capital raised in August. Female-founded startups secured $8.5 million across two deals, while companies with mixed-gender founding teams raised $5.5 million through three transactions.

The disparity shows that the region’s venture capital market continues to offer far greater access to capital for male-founded companies.

Overall, August delivered an impressive headline for MENA’s startup sector, but the distribution of that capital tells a more complicated story. The region raised hundreds of millions of dollars, yet almost all of it went to a small number of companies, with the UAE taking the overwhelming share.

For Morocco, Egypt, and Tunisia, the bigger question is not whether August was a bad month. It is whether the region’s established North African ecosystems can attract a larger share of the capital now flowing into MENA.

And the answer will depend on what happens in the months ahead. If North African startups return to the funding tables, August may prove to have been a temporary lull. If their absence continues, it could point to a deeper shift in where investors see the region’s strongest opportunities.