- From January to September start-ups in MENA secured $1.3 billion marking a 13% decline from the previous year
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Start-ups in the MENA region saw a double-digit decline in investments in the first nine months of the year.
According to new research by Magnitt, funding activity has remained “relatively resilient” despite the decline in investments.
From January to September, start-ups in MENA secured $1.3 billion, marking a 13% decline from the previous year, with the number of deals falling 6% to 352.
Despite this drop, the venture capital data firm noted that deal activity remained resilient compared to other emerging markets like Africa with a 42% decline and Southeast Asia’s 28% decline.
It’s not all doom and gloom
Excluding mega deals, the MENA region’s VC market experienced a 7% growth in funding.
During the nine-month period, Saudi Arabia accounted for 39% of total funding, while the UAE led in deal volume with a 12% increase, making up 38% of all deals.
The region also saw a 34% year-on-year rise in “unique investors.”
Fintech was the leading sector for fresh capital, securing 37% of total funding. Also, fintech start-ups experienced a 31% increase in funding when excluding mega deals.
