The Startup Market Difficulty in MENA (2024)

The MENA tech ecosystem in 2024 presents a nuanced funding landscape for startup founders. While more startups have successfully raised capital, many sectors, such as government, military, and tourism, continue to face significant challenges. Commerce, despite its popularity, is particularly competitive due to an oversupply of startups.

However, focusing solely on the percentage of funded startups can be misleading. Low-volume sectors like biotechnology, agriculture, or sports might appear easier to penetrate, but they often struggle to generate demand from both the market and investors. Instead, founders should assess sector difficulty by balancing investor demand with the level of competition. Sectors like AI offer significant growth opportunities, as demand surpasses competition, while fintech, despite strong investor interest, faces heavier competition. Understanding both dynamics will help founders make more strategic decisions when navigating funding challenges in MENA’s diverse startup landscape.