Arab region startups recorded announced investments totaling $118.5 million during May 2026, spread across 19 investment deals. This indicates continued investor interest in startups, even though the number of completed deals has decreased.
Data showed that the total value of investments in May 2026 increased by 42% compared to April 2026. However, it saw a year-on-year decrease of about 46% when compared to May 2025.
On the other hand, the number of investment deals dropped to 19 in May 2026. This is down from 27 deals in April 2026 and 32 deals in May 2025, representing a 30% decrease from the previous month and about a 41% decrease from the same period last year.
FinTech Takes the Lion's Share
The FinTech sector led the way as the most attractive for investments in May 2026, securing $68.7 million across 5 deals. This accounts for approximately 58% of the total investments recorded during the month.
HR Tech Ranks Second
The HR Tech sector came in second, attracting $17.4 million through a single deal. This highlights a growing interest in digital solutions for human resource management and development.
Health Tech Continues to Grow
Health Tech secured the third spot with investments reaching $15.6 million across 4 deals. This growth is driven by the increasing demand for digital health solutions and services in the region's markets.
E-commerce Remains an Attractive Sector
The E-commerce sector ranked fourth, bringing in $4.5 million through two deals. It continues to be one of the top sectors attracting investor interest within the Arab startup ecosystem.
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