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Explosive Growth In MENA’s Startup Ecosystem

February marked a groundbreaking month for MENA’s startup landscape, with an impressive $494 million raised across 58 deals—almost five times more than last year’s total for the same month. While Saudi Arabia dominated with $250.3 million accrued over 25 deals, the UAE and Egypt followed suit with $203.5 million and $27.5 million respectively.

Debt Financing Dips In February

Unlike January, where debt financing took the bulk of investments, February saw it drop to just 15% of total funding. The exclusion of debt reveals a staggering 371% increase in investment activity, highlighting a promising shift in financial dynamics.

Industry Leaders And Rising Sectors

Fintech emerged as the leading sector, delivering $274 million over 15 deals. Insurtech and logistics took the next spots, with $55 million and $28.5 million respectively. This upswing showcases both sustained interest and escalating financial backing for key tech industries.

Regional Contributions and Gender Disparities

B2B models attracted the most attention in February, garnering $191.6 million through 33 transactions. However, gender disparities remain, as startups led by male founders bagged 87% of the total investment. Despite the progress, this underlines the need for more equitable funding allocations.

For further insights into startup ecosystems, explore how Cyprus is setting new records in global startup growth.

Larnaca Attracts New Investment In Health Care, Technology And Energy

Larnaca is attracting investment beyond residential real estate, with projects in health care, technology, hospitality, logistics and energy.

The shift comes as the city’s residential market continues to expand. According to the RICS and KPMG Cyprus property values index for the second quarter of 2026, Larnaca leads Cyprus’s residential property market. Local officials and business leaders say the broader investment pipeline could create jobs and diversify the city’s economy.

Hotels, Hospitals And Data Centers

The Planning Authority has received applications for office developments, around 30 hotels and tourist accommodations, most of them boutique properties, and a major hospital proposed by Lebanese investors.

Three smaller health care projects, including medical and rehabilitation centers, are also under consideration, along with sports facilities, two large data centers and two battery-based energy storage projects. The projects represent tens of millions of euros in planned investment.

“A city’s development cannot be built only on housing units,” said Angelos Hatzicharalambous, president of the Larnaca District Self-Government Organisation. “It must include all pillars of the economy and investments that create jobs while supporting residential growth as well.”

The organization plans to promote projects in health, culture, education and technology. The pipeline excludes the former refinery redevelopment, expected to involve hundreds of millions of euros, and cultural infrastructure linked to the Larnaca 2030 agenda.

Technology And Business Expansion

Mayor Andreas Vyras said Larnaca is in discussions with foreign investors interested in high-tech campuses and technology institutes, while universities have also expressed interest. The Cyprus Marine and Maritime Institute, or CMMI, has a significant development plan.

A hotel investment of about €100 million is underway in Oroklini, Vyras said. A major financial-sector company has also opened offices on Dhekelia Road after expanding from Limassol.

“What encourages us is not only investment in real estate, but also in more productive sectors that create jobs and help Larnaca grow,” Vyras said.

The Larnaca Chamber of Commerce and Industry is also working with investors, President Dr. Nakis Antoniou said. He highlighted aircraft maintenance and engine services at the former airport area, as well as the recent acquisition of a major Larnaca logistics firm by a Dutch company.

Antoniou also said Lebanese investors remain interested in health care and an Indian company has expressed interest in building a hospital. He warned that roads, drainage, water systems and health care infrastructure have not kept pace with population growth, particularly in Livadia.

“Our infrastructure is not built for this level of growth,” he said, calling for state intervention. He plans to meet with Larnaca’s investors in December to discuss the city’s prospects and development.

Bahrain Partnership

Bahrain’s Council of Ministers has approved a proposal to twin Larnaca with Manama, the kingdom’s capital and largest city.

If formalized, Larnaca would become the first Cypriot city to twin with a Gulf city. The proposed partnership covers municipal affairs, coastal development, public services, waste management, environmental awareness, public parks and digital transformation. The two cities are expected to establish a joint expert working group to monitor implementation of the planned memorandum of understanding.

Larnaca’s investment pipeline now extends from housing and hospitality to health care, technology, logistics and energy, while infrastructure capacity remains a key constraint as the city expands.

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