This week in startup funding across Africa and the Middle East showed a sharp contrast. One fintech raised a record-breaking round. Meanwhile, several smaller startups secured modest funding to solve immediate problems.
The headline deal came from Abu Dhabi. A fintech called Mal raised $230 million in seed funding. The round is the largest seed deal ever in the Middle East and Africa. Remarkably, the company has no product, no banking license, and no revenue yet.
Mal raises record seed round
Mal secured the funding from BlueFive Capital. Founder Abdallah Abu-Sheikh previously sold his stake in Astra Tech to G42 in 2024. He is now building an AI-native Islamic digital bank.
The startup targets the $7 trillion global Islamic finance market. However, the platform has not launched. Regulators have not yet issued licenses in the UAE, the wider Middle East, or Asia.
Still, the company attracted strong backing. Former executives from Revolut and Nubank joined the team. Large institutional investors also committed capital. As a result, Mal’s valuation now exceeds that of many established regional fintech firms.
Smaller deals focus on real-world needs
While Mal grabbed headlines, the rest of the week told a different story. Smaller startups raised funding to address clear and current market gaps.
In Saudi Arabia, Governata raised $4 million in seed funding. Joa Capital and Sanabil Accelerator by 500 Global led the round. The startup built the Kingdom’s first Arabic-language data governance platform.
Government ministries and private firms already use Governata. The platform helps them meet national data rules and prepare for AI adoption. Since mid-2025, the company has signed contracts with several key government entities.
Gaming and fintech deals follow
Khosouf Studio raised $600,000 in seed funding from Merak Capital’s gaming fund. Founder Ahmad Al-Natsheh launched the studio in 2020. He focuses on narrative-driven games for PC, console, and VR.
The studio will now move fully to Saudi Arabia. The move is required. Merak’s fund only backs studios building original intellectual property from within the Kingdom.
In Bahrain, fintech startup Flooss secured a $22 million credit facility. Shorooq structured the deal as the country’s first private asset-backed financing arrangement. The platform follows Sharia principles.
Flooss launched in 2022 and now ranks first among finance apps in Bahrain. It has over 500,000 downloads. The company has also disbursed more than $100 million in loans, mainly to users rejected by traditional banks.
Private credit and early-stage resilience
Jadwa Investment launched the Jadwa GCC Diversified Private Credit Fund. The fund targets $200 million. Jadwa has already closed over $80 million in the first tranche.
The firm deployed capital into regional fintechs Lendo and JeelPay. This marks Jadwa’s first blind-pool regional private credit fund.
Paycrest raised $404,000 in pre-seed funding. Hashed Emergent, StarkWare, LAVA, and Microtraction backed the round. The US-based startup has Nigerian roots and builds stablecoin-to-fiat settlement rails.
The timing is notable. Africa’s pre-seed funding collapsed in 2025. Only $46.5 million went into 281 deals. That figure represented just 1.5% of total venture funding. Paycrest raised capital despite those odds.
Healthtech also attracts attention
Saudi healthtech startup Madeed raised $400,000 in pre-seed funding. Vision Ventures led the round. Founder Dr. Adam Bataineh previously co-founded Span Health, which Eight Sleep later acquired.
Madeed focuses on preventive healthcare. Members receive blood tests, doctor consultations, and tailored supplement plans. The startup aims to detect health risks early and lower long-term costs.
Two clear funding trends emerge
This week revealed two clear patterns. Mal’s $230 million round shows that Islamic finance infrastructure can attract massive institutional capital, even before launch.
In contrast, the other six deals raised less than $30 million combined. However, these startups already serve customers and solve immediate problems.
One approach bets on future scale. The other delivers value today. This week proved that investors are willing to fund both.