DUBAI: In September 2024, Saudi Arabia and the UAE emerged as the giants of startup funding in the MENA region, according to research by Rasmal, a MENA-focused media agency.
The Middle East and North Africa’s burgeoning startup ecosystem secured a substantial $328.3 million across 60 startups, with backing from 36 different investors.
This influx of capital reflects growing confidence in the region’s entrepreneurial landscape.
Leading the charge, Saudi Arabia raised an impressive $165.34 million across 13 startups, accounting for more than half of the total funding.
This surge aligns seamlessly with the Kingdom’s Vision 2030 strategy, which aims to foster growth in technology and innovation.
Major cities like Riyadh and Jeddah have become vibrant hubs for startups, thanks to robust support from both the government and the private sector.
Following closely behind, the UAE garnered $114.32 million in funding, with investments spread across 28 startups.
Dubai continues to attract investors with its business-friendly environment, with FinTech, e-commerce, and PropTech emerging as pivotal sectors.
Other nations in the region also saw significant gains, with Egypt raising $25.09 million.
Bahrain, Oman, and Morocco are also showing promising potential.
However, countries like Iraq and Kuwait still face substantial challenges in attracting considerable venture capital.
Within the sector breakdown, FinTech dominated, drawing $134.84 million. Logistics technology (LogTech) also gained momentum, driven by the region’s e-commerce growth.
Late-stage startups led the way with $129.08 million, while early-stage ventures added $57.3 million across 33 deals.
Despite the overall positive trend, the report highlighted a significant gender disparity, with male founders receiving a staggering 96.79% of the total funds.
This underscores the urgent need for more inclusive investment practices.
Among the notable investments were SHIFT, a logistics and transport tech firm, which secured $83 million, marking the largest single investment of the month.
Other significant deals included Syarah, an online car sales platform, and TON, a FinTech company, which raised $40 million and $30 million, respectively.
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