UAE, Saudi Arabia lead MENA startup funding with $328M raised in September

Saudi Arabia and the UAE dominated startup funding in the MENA region for September 2024, according to research by Rasmal, a MENA-focused media agency.

The Middle East and North Africa's startup ecosystem saw a total of $328.3 million raised across 60 startups during the month, backed by 36 different investors, signaling increased confidence in the region's entrepreneurial potential.

Saudi Arabia led with $165.34 million raised across 13 startups, representing more than half of the total funding.

This boost aligns with the Kingdom’s Vision 2030 strategy, which emphasizes growth in technology and innovation, making cities like Riyadh and Jeddah prominent hubs for startups due to strong government and private sector support.

The UAE followed closely, securing $114.32 million in funding, with 28 startups receiving investments. Dubai continues to draw investors thanks to its business-friendly environment, with FinTech, e-commerce, and PropTech standing out as key sectors.

Other countries also made gains, with Egypt raising $25.09 million and nations like Bahrain, Oman, and Morocco showing increasing potential. However, countries such as Iraq and Kuwait continue to face challenges in attracting significant venture capital.

FinTech was the leading sector, drawing $134.84 million, while logistics technology (LogTech) also gained traction amid the region’s e-commerce growth. Late-stage startups dominated with $129.08 million, but early-stage ventures also contributed, raising $57.3 million across 33 deals.

Despite the strong growth, the report highlighted a gender disparity, with male founders receiving 96.79% of the total funds, underscoring the need for more inclusive investment.

Notable investments included SHIFT, a logistics and transport tech firm, which raised $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, attracting $40 million and $30 million respectively.