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Building Resilience: Consolidation and the Future of the MENA Startup Ecosystem

Building Resilience: Consolidation and the Future of the MENA Startup Ecosystem

By Ashok Raman 04 July 2023

Previously: Exciting Investment Prospects: Tech Sectors Set to Shine in 2023

 

A time for consolidation

The last decade has seen tremendous growth in funding in the region, especially led by Dubai. However in 2022, valuations fell and investors switched focus and acquisitions increased. This trend is expected to continue in the short term, 2023 and 2024, as valuations are expected to continue to correct until they reach pre-pandemic levels. As Noor Sweid mentions, “M&A will also continue to serve as an alternative to raising funds in an illiquid market. This will consolidate the ecosystem overall and will result in a more

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Dubai's Venture Capital Ecosystem

There are 749 scale-ups that have raised over US $1 million in fundraising in the Middle East and North Africa region; collectively raising over US $19.5 billion, cumulatively, as of December 2022. Over 40% of these scale-ups call Dubai home.

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