Weekly Market Highlights

15th of January 2026

This week shows strong momentum across MENA’s tech ecosystem, with funding and strategic moves spanning AI, fintech, health, gaming, and digital infrastructure, reflecting growing confidence in scalable and regionally relevant startups.

eMushrif raised $7.5M in a round led by Jasoor Ventures, with participation from Phaze Ventures and other investors. The company provides AI and IoT solutions for school transportation and currently serves over 120,000 students in Oman and Kuwait. The funding will be used to expand into Saudi Arabia and the UAE and further develop its product and operations.

NEOM selected five Saudi game studios to receive funding through its Level Up accelerator, which supports game startups with capital, mentorship, and global publishing access under Saudi Vision 2030.

Flooss secured a $22M Sharia-compliant credit facility structured by Shorooq to scale its digital consumer financing business in Bahrain. The facility validates Flooss’s AI-driven underwriting model and will be used to expand its core Shariah-compliant cash financing products. Flooss has issued over $100M in financing, ranks No.1 in Bahrain’s finance app category, and serves more than 500,000 users, positioning it for regional expansion, including Saudi Arabia.

Madeed raised $400K in a pre-seed round led by Vision Ventures to build its preventive health and longevity platform in Saudi Arabia. The startup offers a membership-based model combining advanced diagnostics, doctor-led analysis, and personalised health protocols, including customised supplement packs. The funding will support product development, clinical partnerships, and the launch of its first members as it enters early commercialization.

Mal raised a $230M strategic investment led by BlueFive Capital to build an AI-driven Islamic digital bank. The platform, set to launch in 2026, aims to provide ethical and inclusive banking services, starting in the UAE and expanding across the Middle East and Asia. The funding will support product development, regulatory licensing, and go-to-market execution.

Elon Musk’s AI company xAI raised $20B in a Series E round led by major investors including Nvidia, Fidelity, and Qatar’s sovereign wealth fund, exceeding its $15B target. The funding comes despite heavy backlash over its chatbot Grok generating sexualized and non-consensual images of women and minors.xAI faces criticism for misinformation, harmful content, and weak safeguards, with lawmakers demanding accountability. Still, the company continues to attract large investments and government contracts as it expands its AI models and data center infrastructure.

Governata raised $4M in seed funding to scale its AI-ready data governance platform across Saudi Arabia and MENA.The round included Joa Capital, abtal.vc, Sanabil Accelerator by 500 Global, Sadu Capital, Plus VC, and others.The company helps organizations build compliant, trustworthy, and AI-ready data foundations aligned with Saudi regulations.The funding will support product development, enhanced AI capabilities, and regional expansion.

Flat6Labs hosted the sixth Demo Day of its Riyadh Seed Program, marking six accelerator cycles since 2023.The program has accelerated 60+ startups, deployed $17M in seed funding, and unlocked $38M in follow-on investments, supporting 130+ founders and creating over 440 jobs in Saudi Arabia.Backed by F6 Ventures, SVC, Jada, RVC, and NTDP, it strengthens early-stage entrepreneurship through funding, mentorship, and ecosystem support.

Khosouf Studio raised $600K in a seed round led by Merak Capital through its Gaming Fund.The UAE-based studio develops narrative-driven PC, console, and VR games and will use the funding to relocate and expand its operations in Saudi Arabia.

Arabic.AI Academy has partnered with Replit to launch Replit’s full learning courses in Arabic for the first time.The initiative makes world-class software development education accessible to Arabic-speaking developers across MENA, free of charge and without language barriers.It enables learners to move from learning to building real projects using Replit’s tools in Arabic.The collaboration aims to unlock tech talent in the region and expand access to modern, industry-ready skills.

EDT&Partners acquired UAE-based eFlow to strengthen its AI-driven, conversational learning capabilities. The deal enhances engagement and learning adoption, expands EDT&Partners’ Middle East presence, and supports growth in workforce upskilling and large-scale education initiatives.

Yam raised a Seed round led by Vision Ventures and Arzan Venture Capital to scale its instant return and refund platform in Saudi Arabia.The startup enables customers to get refunds or exchanges in seconds and helps merchants reduce operational costs and improve customer retention.

This week reflects the diversity and momentum of the ecosystem, with companies across multiple sectors pushing forward ambitious expansion plans and investors backing platforms that combine strong execution with regional scale.