Today's Edition
HASSOUNAH AL-TAYEB (ABU DHABI)
The UAE recorded the largest increase in the volume of startup investments in the Middle East and North Africa (MENA) region during the first half of 2024, according to a report issued by MAGNiTT Venture Capital Analytics. Startup investments in the country achieved an annual increase of 11%, with 83 deals closed during this period, amounting to $225 million. This positioned the UAE first in terms of deal numbers, followed by the Kingdom of Saudi Arabia with approximately 63 deals, and Egypt with about 28 deals. The UAE ranked second in the MENA region for the value of deals, according to the report.
MAGNiTT explained that the UAE maintained its leadership in the region’s startup financing ecosystem, noting that the UAE accounted for the majority of exits in the region during the first half of 2024, with 10 transactions, six of which occurred in the UAE. The report indicated that the venture capital firm “VC Plus Venture Capital”, headquartered in the UAE, ranked fourth among venture capital firms investing in emerging markets, after successfully closing 10 deals in the first half of 2024. It also highlighted that 36% of venture capital firms in the MENA region during the first quarter of 2024 were based in the UAE and the Kingdom of Saudi Arabia.
While venture capital funding in the MENA region fell by 34% to $768 million, accompanied by an 18% decline in the number of deals to 199, the number of investors in startups in the region increased by 32% year-on-year to 262 investors since the beginning of 2024. This indicates continued interest from local and international investors in the region. In contrast, the number of investors in Africa decreased by 34% year-on-year, while Southeast Asia witnessed a slight decline of 2% in the first quarter of 2024.
Fintech companies accounted for 38% of startup investments in emerging markets, securing funding of $1 billion across 128 deals, making this sector a leader in funding. Additionally, the MENA region witnessed significant activity in the e-commerce retail sector, which received $244 million in funding, despite a 39% year-on-year decline.
