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MENA Fintech Funding Holds At $617 Million As Deal Activity Falls

MENA fintech raised $617 million across 57 transactions in H1 2026, matching H1 2022 funding but across 31 fewer deals. The gap points to a market increasingly shaped by larger transactions.

Fintech Deal Activity Falls To A Multi-Year Low

Transactions fell 50% year over year to 57, making H1 2026 the second-lowest first half for fintech deal activity in the period. Only H1 2023 recorded fewer deals, with 54.

Funding declined by 9%, indicating that fewer companies secured capital while total investment remained relatively concentrated. Larger transactions therefore accounted for a greater share of overall funding.

Large Rounds Support Overall Funding

Deals above $100 million were the main driver of funding, while capital deployed through smaller rounds declined. This made the region’s overall performance more dependent on a limited number of large transactions.

The pattern has appeared in previous years, but its impact varies by period. H1 2024 recorded no $100 million-plus round, when funding reached its lowest level, while H1 2025 posted a stronger first half before slowing in the second.

Fintech Gains Share Of Mena Funding

Fintech accounted for $617 million of the $1.35 billion invested across Mena in H1 2026, increasing its share of regional funding.

The higher share reflects fintech funding falling less sharply than the broader Mena venture market, rather than sector-wide growth. Fintech funding itself declined 9% year over year.

H1 Funding Does Not Set The Full-Year Trend

First-half funding has historically represented between just over one-third and more than half of annual fintech investment. Annualizing the H1 figure therefore indicates the scale of activity but does not provide a full-year forecast.

The timing of large deals can also materially change the annual picture. The absence of a $100 million-plus round in H1 2024 illustrates how quickly headline funding can shift when a few transactions account for a significant share of investment.

At $617 million, H1 2026 shows the current scale of MENA fintech funding, while the second half will provide more evidence on whether activity is stabilizing. The continued decline in deal volume remains a key trend.

The full MAGNiTT report covers quarterly trends, transaction sizes, funding stages, geographies, sectors, investor activity and fintech exits.

More Than 1.5 Billion People Faced Dangerous Heat This Summer

More than 1.5 billion people were exposed to dangerous levels of heat this summer, according to a global analysis by nonprofit Climate Central.

The study found that Europe experienced the most unusual heat during June-August 2026, with nearly nine in 10 Europeans exposed to at least one month of what researchers classify as “risky heat.”

Europe Emerged As The World’s Hottest Region

Climate Central defines risky heat as temperatures above 90% of local temperatures recorded between 1991 and 2020 for the same period. Researchers use the threshold to identify temperatures at which health risks begin to increase.

Across the world, people in 203 countries experienced at least 30 days of risky heat. In 54 countries, June-August 2026 was the hottest such period on record, while seven of the 10 countries with the largest temperature anomalies were in Europe.

France recorded the largest national temperature anomaly, at 3.5C above its historical average.

“Whether it’s nine in 10 Europeans enduring risky heat, hundreds of millions impacted across Asia and Africa, or relentless record-breaking temperatures in North America, human-driven warming is pushing communities beyond safe physical limits,” said Kristina Dahl of Climate Central.

She said the summer’s heat should be viewed in terms of its immediate effects on health systems, labor productivity, infrastructure and household finances.

Simon Stiell, executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC), who was not involved in the study, said the findings show the rising costs of climate change linked to fossil fuel use.

Clean Energy Faces Rising Demand

Europe’s extreme summer was part of a broader trend that scientists say would have been “virtually impossible” without climate change. Earlier this month, the United Nations said limiting warming to 1.5C is no longer achievable under current conditions.

The latest United Nations Environment Programme (UNEP) outlook projects 1.8C of warming in the best-case scenario and more than 2C in less favorable cases. UNEP now describes the likely pathway as “overshoot, peak and decline.”

Renewable energy is central to limiting that overshoot. Renewables generated almost 34% of global electricity in 2025, but UNEP says the share would need to reach 60%-70% by 2030 under a limited-overshoot pathway.

In the European Union, wind and solar generated more electricity than fossil fuels for the first time last year. SolarPower Europe estimates that solar generation has saved the bloc €33.8 billion in avoided gas imports since the start of the war on Iran.

Power Grids Struggle With Growing Demand

Investment in clean energy has reached about $1.9 trillion annually, but renewable generation is meeting only around 40% of the increase in electricity demand. Air conditioning and the rapid expansion of artificial intelligence are contributing to that growth.

According to the International Energy Agency, data center electricity use increased 17% in 2025, reaching roughly 1.5%-2% of global electricity demand. That figure is expected to double by 2030.

Europe’s aging power grids are also struggling to integrate growing amounts of renewable generation, leaving some solar and wind capacity unused. Battery storage can help reduce those bottlenecks, but investment has not kept pace with the scale of the challenge.

This summer’s heat is adding pressure on governments, businesses and infrastructure systems to adapt to higher temperatures while expanding low-carbon energy capacity.

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