A Total of $36 Million has Been Invested in MENA Startups Despite Regional Constraints

In September, startup investments in the Middle East and North Africa region experienced a significant decline, with only $36 million raised across 36 deals—a 64% decrease from the previous month and an 82% drop from the previous year, according to Wamda's monthly investment report.

The year-to-date figures indicate a total investment of $1.8 billion, including $687 million from debt financing, in contrast to the first three quarters of the previous year, which saw startups in the MENA region amass $2.7 billion, with $455.7 million coming from debt financing.

This funding downturn is reflected in decreasing deal counts and smaller cheque sizes, affecting the entire region.

The UAE stood out in September, leading in funding due to substantial investments in Fuze and Zero Carbon Ventures, amounting to $27 million from 14 deals.

Saudi Arabia secured $2.7 million across seven transactions, while Egypt closely followed with six startups accumulating $2.6 million.

In Saudi Arabia, there was a significant 95 percent month-on-month decrease in deal value, reflecting the cautious approach seen in the broader region among investors.

Fintech emerged as a favored sector with six deals surpassing $16 million, followed closely by clean technology and gaming.

Business-to-business startups secured over $25 million in investments, whereas business-to-consumer startups obtained just over $10 million, with a relatively even distribution in deal numbers between the two models.

A gender-based analysis revealed that female-founded startups secured a total of $320,000 primarily through grants.

In contrast, startups with mixed-gender founding teams garnered $1.65 million across four deals, while those exclusively founded by men dominated with a total investment of $34 million across 21 deals.

(Nour El-Shaeri / Arab News)