Saudi Startup Funding Falls 74% in H1 2026 as Mega-Rounds Disappear

Saudi Arabia’s venture capital market slowed sharply in the first half of 2026, with startups raising about $219 million, down 74% from a year earlier, according to Argaam and MAGNiTT. The decline was driven by the absence of mega-rounds above $100 million and fewer overall deals, but enterprise software still stood out as a bright spot with strong growth even as broader funding weakened. The slump matters because Saudi Arabia remains one of the region’s most active startup markets, and the data suggests investors are becoming more selective, with capital concentrated in a smaller set of companies and sectors.