The third week of January 2026 witnessed continued investment inflows into the Middle East’s startup ecosystem, with a clear dominance of the Saudi market, which captured the largest share of funding, particularly in the fintech sector.
According to the weekly investments and acquisitions report issued by “entArabi” for this period, investors focused heavily on artificial intelligence solutions across multiple sectors, alongside support for the education and healthcare industries in the region.
The week also reinforced the clear priority of investors in Saudi Arabia.
The largest funding round was led by “Mal,” which raised $230 million, underscoring the ongoing flow of capital into companies targeting digital transformation in the financial sector.
At the same time, the artificial intelligence sector remained a major focus, whether in technical recruitment through Resquad AI or enterprise data governance through Governata. This reflects investors’ desire to build a strong digital infrastructure that supports digital transformation and data-driven decision-making.
The week also highlighted support for safety solutions and smart technologies in the education sector through eMushrif, which is aiming for regional expansion across the Gulf.
Meanwhile, Madeed’s round in preventive healthcare indicates growing interest in medical prevention and health technologies that detect risk factors early.
On the other hand, Flowus’ funding in Bahrain reflects continued demand for Sharia-compliant consumer finance services and the expansion of digital financial products in the region.
Investments by Country
| Country | Companies | Deal Value |
|---|---|---|
| Saudi Arabia | Resquad AI | $1.5 million |
| Saudi Arabia | Governata | $4 million |
| Saudi Arabia | “Yamm” | Undisclosed |
| Saudi Arabia | “Mal” | $230 million |
| Saudi Arabia | Madeed | $0.4 million |
| Bahrain | Flowus | $22 million |
| Oman | eMushrif | $7.5 million |
| Total (by Country) | Saudi Arabia + Bahrain + Oman | $265.4 million (excluding Yamm’s undisclosed amount) |
Investments by Sector
| Sector | Companies | Deal Value |
|---|---|---|
| Recruitment/AI | Resquad AI | $1.5 million |
| Data Governance/AI | Governata | $4 million |
| Post-purchase Experience | “Yamm” | Undisclosed |
| Fintech | “Mal” | $230 million |
| Preventive Healthcare | Madeed | $0.4 million |
| Sharia-compliant Consumer Finance | Flowus | $22 million |
| Education/IoT | eMushrif | $7.5 million |
| Total (by Sector) | All Sectors | $265.4 million (excluding Yamm’s undisclosed amount) |
