MENA Venture Capital Funding Soars to $1.4bn in 2023: UAE and Saudi Arabia Take the Lead

The Middle East and North Africa (MENA) region is experiencing a significant surge in venture capital funding, with the UAE and Saudi Arabia taking the lead in the MENA Venture Capital funding boom.

According to the Q3 2023 MENA Venture Investment Premium Report by the startup data platform MAGNiTT, the third quarter witnessed MENA venture capital funding of $250 million raised through 78 deals, marking a substantial 32% increase compared to the previous quarter.

This impressive performance contributed to a total of $1.4 billion raised across 286 transactions in the first nine months of 2023.

Among the MENA nations, Saudi Arabia and the UAE stand out as the frontrunners in terms of capital raised through venture capital funding.

Saudi Arabia reported a remarkable 172% quarter-on-quarter increase in funding, while the UAE recorded a substantial 55% upswing in new investments.

The UAE has also been the most active in terms of the number of transactions, accounting for a third of all deals closed in the MENA region during the first three quarters of 2023.

Mega Deals Drive MENA Venture Capital Funding's Q3 Performance

The impressive Q3 performance in MENA is thanks to a series of mega deals, characterized by investments exceeding $100 million, taking place across the region.

Another reason is the rise in new venture capital funds within the MENA region.

Notable examples include UAE's Chimera Capital and Aliph Capital launching new funds, while in Saudi Arabia, IMPACT46 and KAUST have successfully raised funds for local startup deployment.

Dubai is rapidly emerging as the hub of the world's digital economy, attracting over 1,000 investors managing a combined total of over $1 trillion, cementing its position as a global digital business epicenter.

Source: Arabian Business