News (46)
Startup Ecosystem in MENA: Saudi Arabia on the Rise, Egypt Struggling for Stability
14 Apr 2025 Written by Admin AdminStrong Investment Momentum in Q1 2025
Startups in the Middle East and North Africa (MENA) region witnessed remarkable growth in Q1 2025, raising $693 million across 137 deals—a 60% increase compared to the same period in 2024.
These figures reflect a strong recovery from the downturn of 2023 and renewed investor confidence in the regional ecosystem, especially as governments across the Gulf continue expanding support for innovation and entrepreneurship.
Saudi Arabia: Proactive Strategy and Tangible Results
Saudi Arabia led the region’s investment landscape, attracting 50.3% of total funding—approximately $348.3 million—through 54 deals, which accounted for 39.4% of all transactions. This growth is not a one-off but part of a long-term trajectory fueled by institutional support, streamlined regulation, and strategic vision.
Initiatives such as the LEAP 2025 tech conference have become official launchpads for major startup funding announcements in deep tech, AI, health tech, and edtech. These results align with Vision 2030, which aims to diversify the economy, empower youth and women, and bolster the private sector's role in national development. National accelerators like Monsha’at and regulatory reforms have created a fertile ground for entrepreneurial growth.
Egypt: Abundant Talent, Persistent Obstacles
Egypt raised $43.6 million across 16 deals during the same period, representing only 6.3% of the region’s total startup investments. Despite being one of the oldest and most vibrant entrepreneurial hubs in the Arab world, Egypt's current standing is hindered by economic instability, currency fluctuations, high inflation, and regulatory uncertainty—factors that continue to affect investor confidence.
However, Egypt still holds what can be called a 'digital goldmine': a large pool of skilled tech talent, competitive operational costs, and a generation of entrepreneurs building impactful startups in fintech, edtech, and healthtech.
Startups like Swvl, which achieved unicorn status before facing operational downsizing, and MoneyFellows, a platform digitizing traditional ROSCA models, illustrate the ecosystem's potential and its fragility.
Top Funded Sectors: Fintech Leads the Way
According to a report from Wamda covering February 2025, fintech was the top-funded sector, attracting $274 million across 15 deals. Saudi Arabia led this vertical with startups like Tabby and Tamara, which continue to scale regionally.
Insurtech ranked second with $55 million from two deals, followed by logistics, which raised $28.5 million across four deals.
In Egypt, funding was more diversified, with growing interest in digital education, mobility, and HR tech. However, no single sector demonstrated dominance, reflecting both opportunity and fragmentation.
The Saudi-Egypt Gap: Not in Talent, But in Climate
Despite its human capital and entrepreneurial legacy, Egypt lacks a cohesive long-term strategy for startup development. While Saudi Arabia offers tax incentives, streamlined business registration, and direct funding support, Egyptian entrepreneurs still face bureaucratic bottlenecks, outdated legal frameworks, and limited government-backed accelerators.
This disparity underscores a larger truth: the difference is not about resources but about political and strategic will. Saudi Arabia has aligned capital, infrastructure, and education within a national economic vision. Egypt’s efforts remain fragmented and donor-driven, lacking institutional continuity or scalability.
Future Outlook and Recommendations
Analysts believe the region’s startup landscape is poised for further transformation in 2025–2026, with new capital expected from Asian and European markets—especially if political and economic stability improves in countries like Lebanon, Tunisia, and Iraq.
To capitalize on these opportunities, Egypt needs to:
- Enact urgent regulatory reforms to ease business formation.
- Accelerate government digital transformation.
- Build structured public-private partnerships to fund and mentor startups.
- Provide targeted support for scale-ups, not just early-stage ventures.
Meanwhile, Saudi Arabia must sustain momentum by enhancing legislative openness and facilitating global expansion through trade deals and export incentives. The upcoming Arab Tech Summit and increased EU interest in cross-Mediterranean digital trade zones suggest that stable innovation hubs will attract the next wave of capital.
Sources
- Fintech Gate – "MENA Startups Raise $693 Million in Q1 2025"
https://fintechgate.net/2025/04/13/الشركات-الناشئة-بالشرق-الأوسط-وشمال-أ-13/ - Wamda – "MENA Startups Raised $494 Million in February 2025"
https://www.wamda.com/2025/03/mena-startups-raised-494-million-february-2025-371-mom-growth-arabic - Alborsa News – "Egyptian Startups Raised $608 Million in 2023"
https://www.alborsaanews.com/2025/02/23/1871114
Catalyst Unveils New Investments and Partnerships at World Future Energy Summit
21 Jan 2025 Written by Admin AdminAt the recent World Future Energy Summit, Catalyst, a leading cleantech accelerator, announced a series of significant developments showcasing its commitment to fostering innovation and driving sustainable solutions.
The summit witnessed the launch of three new direct investments by Catalyst, bolstering its support for cutting-edge cleantech companies. These investments targeted Ed Energy, Batsand, and Solomar, each tackling critical environmental challenges with innovative solutions.
Ed Energy, for example, is developing groundbreaking energy storage technologies, while Batsand focuses on carbon-free thermal energy solutions. Solomar, on the other hand, is pioneering innovative waste management solutions.
Furthermore, Catalyst announced the induction of the tenth cohort of startups into its accelerator program. Ten promising companies from the UAE and Egypt were carefully selected to participate in this prestigious program, set to commence in the first quarter of 2025 in partnership with Flat6Labs.
This program provides startups with invaluable mentorship, access to funding, and a supportive ecosystem to accelerate their growth and achieve their sustainability goals.
Catalyst also solidified its commitment to fostering innovation through strategic partnerships with key players in the sustainability landscape. A key partnership was formed with Bee'ah, a leading sustainability and innovation company. This collaboration will focus on identifying and supporting high-potential startups, developing tailored mentoring programs, and facilitating knowledge exchange across critical sectors such as green mobility and waste management.
Furthermore, Catalyst entered into a strategic partnership with Hub71, Abu Dhabi's global technology ecosystem. This collaboration will provide startups with access to a wider network of investors, mentors, and corporate partners within Hub71's thriving ecosystem, opening up new avenues for growth and development.
Startups will also have the opportunity to join the Hub71+ ClimateTech program, a specialized initiative dedicated to supporting climate-focused solutions.
Catalyst also signed an agreement with Flat6Labs, the leading early-stage venture capital firm and the largest startup accelerator operator in the Middle East and North Africa.
This partnership will leverage Flat6Labs' expertise in early-stage venture capital and startup acceleration to enhance the support services offered to Catalyst's portfolio companies, equipping them with the necessary resources and expertise to navigate the challenges of scaling their businesses.
Ahmed Al Baqhi, Chairman of Catalyst and CEO of Masdar City, emphasized the UAE's commitment to fostering a thriving environment for innovation. He stated, "The UAE provides a fertile ground for startups to flourish, offering a wealth of opportunities for both local and global entrepreneurs.
Catalyst is dedicated to nurturing this ecosystem through initiatives like the launch of the new accelerator batch and these strategic partnerships. By supporting these innovative startups, we are not only driving economic growth but also contributing significantly to a more sustainable future for all."
Khalid Al Huraimel, CEO and Vice Chairman of Bee'ah, highlighted the significance of this collaboration: "This partnership with Catalyst will strengthen our commitment to sustainability and inspire a new generation of innovative entrepreneurs.
By working together, we can accelerate the development and deployment of cutting-edge solutions that address critical environmental challenges and pave the way for a more sustainable future."
Ahmed Ali Alwan, CEO of Hub71, emphasized the importance of empowering startups to drive real and impactful change. "Our partnership with Catalyst reflects our shared vision of supporting entrepreneurs and fostering a thriving innovation ecosystem," he said.
"By connecting startups with the right resources and expertise, we can accelerate their growth and enable them to make a significant contribution to a more sustainable future."
Yahya Hawari, Managing Director of Programs at Flat6Labs, expressed his enthusiasm for this collaboration: "This program will provide startups in the region with the necessary tools and resources to address critical climate challenges and contribute to building a more sustainable future. We are excited to support these ambitious companies as they scale their businesses within the UAE's thriving market."
Catalyst's continued efforts in supporting cleantech innovation will play a crucial role in driving sustainable development across the region and beyond.
By fostering collaboration among key stakeholders, providing access to resources and mentorship, and supporting the growth of high-impact startups, Catalyst is paving the way for a more sustainable future for all.
Source: News
MENA Startup Funding Surges in September 2024: Saudi Arabia Leads the Way
18 Oct 2024 Written by Admin AdminThe Middle East and North Africa (MENA) region witnessed a significant uptick in startup funding during September 2024. A total of $282 million was raised by 63 startups, marking a substantial 234% increase month-over-month and a 607% rise year-over-year. Debt financing accounted for just 12% of the total investment, indicating a preference for equity-based funding.
Saudi Arabia Dominates the Landscape
Saudi startups once again emerged as the top-funded ecosystem in the MENA region, securing more than 60% of the total investment. They raised $170.8 million across 23 deals, surpassing the UAE, which raised $73.8 million through 12 startups. Egyptian startups, however, lagged behind, raising only $25 million.
Fintech Remains the Top-Funded Sector
For the fourth consecutive month, fintech maintained its position as the most sought-after sector by investors. Startups in this space raised an impressive $102.5 million across 14 deals. The mobility sector followed closely, driven primarily by SHIFT's substantial funding round.
Early-Stage Startups Continue to Attract Investor Interest
Investors demonstrated a strong preference for early-stage startups, with $102 million invested in 15 seed deals and $5 million in seven pre-seed startups. While later-stage startups secured fewer deals, notable transactions included Paymob's $22 million Series B and Syarah's $60 million Series C.
B2C Startups Lead in Investment Value
The business-to-consumer (B2C) model emerged as the top-funded business model, attracting $93.7 million across 24 startups. Although business-to-business (B2B) startups received $84.6 million, startups operating in both domains collectively secured the majority of investment value, raising $100 million across five deals.
Gender Gap in Funding Persists
While female-founded startups continued to be underrepresented, they did secure $583,000 in funding, primarily through grants. Male-founded startups dominated the landscape, raising $260 million. However, there were signs of progress, with seven startups co-founded by men and women raising a total of $21 million.
MENA Startup Ecosystem Shows Resilience Amidst Challenges
The Middle East and North Africa (MENA) region's startup ecosystem demonstrated remarkable resilience in the third quarter of 2024, defying the challenges posed by escalating regional tensions and economic uncertainties.
Despite these hurdles, the ecosystem witnessed a surge in investment activity, with a total of $727 million secured by 136 startups.
This represents a substantial increase of 192% compared to the same period last year and a 60% rise from the previous quarter.
UAE Maintains Top Spot
While Saudi Arabia has consistently shown strong growth, the UAE-based startups continue to lead the MENA region in terms of investment amount. They raised $233 million in Q3 2024, a 23% decline quarter-over-quarter but a 65% increase year-over-year. Saudi startups followed closely, securing $219 million.
Egypt's Ecosystem Flourishes
Egypt's startup ecosystem experienced an impressive surge, attracting $215 million in Q3 2024. This marked a 345% increase quarter-over-quarter and a staggering 1076% increase year-over-year, defying the deteriorating economic conditions and geopolitical turmoil.
Oman and Jordan Emerge
Oman and Jordan also demonstrated growth, with Oman securing $40 million across three startups and Jordan securing $2.5 million through 11 deals.
Fintech Retains Top Position
Fintech reclaimed its position as the top-funded sector, raising $355 million through 38 transactions. Web3 followed with $99 million, while e-commerce startups raised $86 million.
Early-Stage Startups Remain Favored
Investors continued to favor early-stage startups, with seed deals accounting for $218 million and Series A deals totaling $160 million. Later-stage startups were less active, with only a few transactions noted.
B2B Dominates Investment
The business-to-business (B2B) model emerged as the most funded, attracting $477.6 million. While business-to-consumer (B2C) startups received $124 million, those operating in both domains secured $100 million.
Gender Gap Persists
Male-founded startups dominated the landscape, raising $683 million, while female-founded startups raised $953,000. However, there were signs of progress with seven startups co-founded by men and women raising $21 million.
Outlook for Q4
The MENA startup ecosystem is poised for continued growth, driven by several factors. Local venture capitalists are increasingly recognizing the region's potential, while rising oil prices provide favorable conditions for investment. The positive momentum is expected to continue into Q4 2024.
Key Trends and Future Prospects
Increasing Digitization: The region's rapid adoption of digital technologies is creating new opportunities for startups across various sectors.
Government Support: Governments are actively fostering startup growth through initiatives like technology parks, incubators, and funding programs.
Talent Pool Expansion: The MENA region is witnessing a growing pool of talented entrepreneurs, driving innovation and growth.
Global Competition: MENA startups must differentiate themselves and offer unique value propositions to compete effectively in the global market.
Regulatory Challenges: Simplifying regulatory procedures and providing clear guidelines can facilitate startup growth.
Cultural Barriers: Understanding and adapting to cultural nuances is essential for successful cross-border collaborations.
Addressing these challenges and capitalizing on these trends will be crucial for the continued success of the MENA startup ecosystem. By fostering innovation, building partnerships, and scaling internationally, the region can position itself as a global leader in entrepreneurship.
A Sharp Decline in Investment Activity
The Middle East and North Africa (MENA) startup ecosystem experienced a significant cooling down in August 2024. Total investments in startups plummeted to $83 million across 30 rounds, marking a 76% month-on-month (MoM) decrease from July's $355 million.
This downturn also represented a 24% year-on-year (YoY) decline.
No Mega Deals and Limited Debt Financing
The absence of any megadeals in August was a notable trend. The largest single investment was a $30 million allocation to Yuze. Debt financing accounted for only a small portion of the total investment, representing approximately 3%.
UAE Dominates, Egypt Struggles
The United Arab Emirates (UAE) continued its dominance in the MENA startup landscape, securing the majority of investment in August. UAE-based startups raised $55.7 million across 13 deals. Saudi Arabia followed in second place with $16 million raised through nine deals.
Egyptian startups, which had been at the forefront of MENA investment in July, witnessed a dramatic decline in August, raising only $7.6 million across four deals. Kuwait also made the top four thanks to a single deal worth $3 million.
Fintech and Web3 Remain Attractive
Despite the overall slowdown, investor appetite for fintech remained strong. For the third consecutive month, fintech maintained its position as the most funded sector in MENA, raising $54 million across eight deals. Web3 also regained its appeal, securing second place with $13.5 million in funding.
Early-Stage Focus and Undisclosed Stages
The majority of August's investment was directed towards early-stage startups. Two startups managed to raise $19 million for their Series A rounds, while five startups received a total of $15.6 million in seed funding.
Notably, a significant portion of the investment went to undisclosed stages, as seven startups did not disclose their funding round, accounting for $35.4 million.
B2B Remains Popular, Female-Led Startups Struggle
The business-to-business (B2B) model continued to attract investor interest, with 13 startups raising $46 million. Business-to-consumer (B2C) startups garnered $15 million across five rounds.
Female-led startups faced ongoing challenges, comprising a mere 0.3% of the total investment. Only one female-founded startup, Powder Beauty, secured an undisclosed pre-Series A round. Another startup with a female co-founder received a $150,000 accelerator grant.
August Highlights
Despite the overall downturn, the MENA entrepreneurial ecosystem witnessed several notable developments in August. A coalition of GCC-based family offices launched the "Waad Investment" firm with a target value of $200 million.
A $100 million fund was also established in collaboration between Gate Ventures and the Blockchain Centre in Abu Dhabi to support Web3 innovation.
In Egypt, T-Vencubator launched its inaugural initiative, "Where's the Problem?" to support the Egyptian ecosystem.
In the mergers and acquisitions (M&A) domain, the UAE-based property crowdfunding platform Maisour was acquired by Meteora Developers. Kuwait-based proptech Sakan also acquired the Qatari company Hapondo.
Entlaq, in collaboration with Wamda, released its biannual report on the Egyptian entrepreneurship sector for the first half of 2024, highlighting the challenges and opportunities faced by Egyptian startups.
The Middle East and North Africa (MENA) startup ecosystem experienced a remarkable resurgence in July 2024, with a staggering $355 million invested across 38 startups.
This represents a monumental 206% month-on-month (MoM) increase and a more than 260% year-on-year (YoY) growth, signaling a robust rebound from the earlier investment slump.
This surge is particularly noteworthy given the backdrop of a global economic downturn and escalating geopolitical tensions in the region. However, the looming prospect of a Fed rate cut in September appears to have injected renewed optimism into the market, driving investor confidence.
A notable shift in investment trends emerged in July. Debt financing, which had previously gained traction, took a backseat, accounting for less than 1% of total investments. This indicates a growing preference for equity-based funding, suggesting a healthier investment climate.
Egypt emerged as the undisputed leader in July, securing a substantial $185 million across seven deals. A single transaction, involving MNT-Halan, accounted for a significant portion of this amount.
While the UAE retained its position as the second-largest recipient of investment with $96 million, Saudi Arabia experienced a downturn, securing only $31 million. Surprisingly, Oman claimed the third spot, thanks to a substantial $37 million investment in 44.01.
Fintech continued its dominance as the most favored sector, attracting $181 million across 16 startups. The Web3 sector followed closely with $85 million invested in just two startups, highlighting the growing interest in decentralized technologies.
Deeptech and cleantech gained prominence, securing significant investments in 44.01 and Intelmatix, respectively. Although e-commerce witnessed a decline in terms of investment, it remained active with six deals securing $15.7 million.
The investment landscape tilted towards early-stage startups, with seed-stage companies receiving $96 million across eight deals, closely followed by Series A with $91.7 million across eight deals. Pre-seed startups secured a modest $1.8 million across five deals.
B2B models continued to dominate investor interest, capturing $345 million across 27 businesses. In contrast, B2C startups received a comparatively smaller amount of $8 million across nine deals.
While the overall investment landscape showed signs of recovery, the gender disparity persisted. Only two female-led startups secured a combined $270,000, highlighting the ongoing challenges faced by women entrepreneurs in the MENA region.
The M&A landscape witnessed some activity, primarily centered in the UAE. Notable deals included the acquisition of BitOasis by CoinDCX, Power League Gaming by Muller & Phipps Middle East Group, and Lableb by Majarra.
Overall, July 2024 marked a significant turning point for the MENA startup ecosystem. The substantial increase in investment, coupled with a shift towards early-stage funding and a renewed focus on equity-based deals, indicates a promising outlook for the region's tech sector.
However, addressing the gender gap in investment and fostering a more inclusive ecosystem remains crucial for the sustainable growth of the MENA startup landscape.
June 2024 painted a mixed picture for MENA startup funding. While investment activity slowed down compared to May, with 38 tech startups securing a total of $116 million, the first half (H1) of the year closed strong at $882 million. This represents a notable year-over-year increase of 182%, showcasing sustained growth in the region's entrepreneurial ecosystem. However, a significant 59% decline from May's funding highlights a potential short-term slowdown.
Looking geographically, the United Arab Emirates (UAE) maintained its dominance, attracting $82.5 million across 15 deals. This demonstrates the UAE's continued attractiveness for investors and startups. Egypt's startup scene showed encouraging signs with four companies raising a combined $15 million, marking the second-highest total for the month. Saudi Arabia followed with $13.5 million from seven startups. Interestingly, Iraq also witnessed activity, with six startups securing an estimated $1.2 million, suggesting a potential emerging market within the MENA region.
Sector-wise, June saw a shift in leadership. Fintech reclaimed its position as the most funded sector, securing $38 million across 10 deals. This resurgence indicates continued investor confidence in the potential of financial technology solutions in the region. Construction technology (contech) followed closely, largely driven by a significant investment in Tenderd. Proptech, the previous leader in May, saw a cool-down with three startups raising $19.6 million. This month's funding distribution highlights the dynamic nature of investor focus within the MENA tech landscape.
Despite the pre-Series A funding round leading the way with $45 million across four deals, the overall picture points towards a strong focus on early-stage startups. Seed funding remains active with $27.3 million secured by five startups. Notably, even pre-seed ventures continue to attract attention, with eight startups garnering a combined $3 million and another eight receiving $140,000 in grants. This focus on early-stage companies suggests a healthy pipeline of innovative ideas emerging from the region.
The business-to-business (B2B) model dominated funding in June, raising a substantial $66.4 million across 18 deals. This represents a significant 74% of the total investment, showcasing the continued importance of B2B solutions in driving regional economic growth. Business-to-consumer (B2C) startups, although less prominent this month, still secured $49.5 million. However, a concerning gender gap persists. Male-founded startups received a staggering $103.4 million (89%) compared to a mere $200,000 secured by female-led ventures. This highlights the need for continued efforts to promote diversity and inclusion within the MENA startup scene.
Overall, June's funding activity in MENA presents a complex picture. While a short-term slowdown is evident, the H1 total paints a more optimistic picture. The strong performance of specific sectors, the focus on early-stage ventures, and the continued dominance of B2B models all indicate a promising future for MENA startups. However, addressing the gender gap remains a critical challenge for the region's entrepreneurial ecosystem to reach its full potential.
The first half of 2024 (H1) revealed a clear concentration of capital within the MENA startup landscape.
UAE Retains Top Spot, But Growth Slows
The United Arab Emirates (UAE) maintained its position as the region's funding leader. However, growth has slowed. 91 UAE-based startups raised a total of $455.5 million in H1 2024, down from $604 million secured in the same period last year.
Saudi Arabia Sees Similar Decline
Saudi Arabia (KSA) followed the UAE in terms of funding, attracting $300 million in H1 2024. This also represents a decrease compared to the $554 million secured in H1 2023.
Egypt's Ecosystem Feels the Squeeze
Despite significant investments flowing into Egypt's real estate and tourism sectors from Gulf Cooperation Council (GCC) countries, the nation's broader economic struggles have impacted its startup scene. A national debt exceeding 96% of GDP, high inflation (32.5%), and an energy crisis causing power outages have combined to create a challenging environment. Consequently, the Egyptian startup ecosystem witnessed a dramatic decline in H1 2024. Only 33 startups raised a combined $83 million, a staggering 80% drop compared to the same period in 2023.
Morocco Shows Signs of Promise
A bright spot emerges in Morocco, where the startup ecosystem is gaining momentum. Six Moroccan startups secured a total of $12.5 million in H1 2024, hinting at potential growth in the North African nation.
The first half of 2024 saw a fascinating shift in investor focus within the MENA startup landscape. Proptech, the sector concerned with innovating the real estate industry, emerged as the new darling, attracting a staggering $200 million across just 14 deals. This dethroned fintech, the previous leader, which secured a respectable $156 million but spread across 50 deals. This difference in deal count highlights a potential trend – investors might be placing larger bets on fewer, but potentially higher-impact proptech ventures.
Meanwhile, the software-as-a-service (SaaS) sector remained a consistent force, securing $164 million across 23 deals. This suggests a continued focus on cloud-based solutions that improve operational efficiency across various industries. E-commerce, however, experienced a significant decline, raising only $33.6 million in 19 transactions. This drop from $194 million in H1 2023 indicates a potential market correction or a shift in consumer behavior. Foodtech followed a similar downward trajectory, plummeting from $183 million in 2023 to a mere $24 million in H1 2024. This could be due to a number of factors, such as increased competition, saturation in certain food delivery niches, or changing consumer preferences towards dining out or home cooking. It will be interesting to see if these declines are temporary adjustments or represent a more long-term trend within the MENA tech ecosystem.
Early Stages Shine in H1 2024 Funding
The first half of 2024 witnessed a shift towards early-stage funding in the MENA startup ecosystem. Here's a breakdown of the key trends:
Debt Financing Takes a Backseat: Debt financing, which played a significant role in H1 2023 (39% of total funding), saw a noticeable decline this year, dropping to just 17%. This suggests investors might be adopting a more cautious approach or focusing on earlier-stage ventures with higher growth potential.
Series A Still Strong, But Seed Stage Steals the Show: While 17 Series A startups managed to raise a significant sum of $169 million, the real story lies in the Seed funding stage. A whopping 52 Seed rounds secured a total of $131 million. This surge in early-stage funding indicates a focus on nurturing promising startups from the ground up and potentially signals a robust pipeline of innovative ideas emerging from the region.
Pre-Series A Sees Mixed Signals: Pre-Series A startups received $96 million across 17 deals. However, it's important to note that Salla's pre-IPO round, a significant outlier, contributed $130 million on its own. Excluding this anomaly, pre-Series A funding might also be experiencing a slight slowdown.
Overall, the data points towards a clear preference for early-stage funding in H1 2024. Investors seem to be placing their bets on the potential of young startups, while debt financing plays a less prominent role compared to the previous year.
B2B Takes Center Stage, Gender Gap Persists
The first half of 2024 saw a clear shift in investor focus towards the business-to-business (B2B) sector. B2B startups secured a staggering $473 million across investments, marking a 153% increase compared to H1 2023. Conversely, the business-to-consumer (B2C) model witnessed a significant decline, raising only $356 million, down 64% year-over-year. This trend suggests a potential preference for ventures that address business needs and drive regional economic growth.
Funding Disparity for Female-Led Startups
A concerning disparity emerged in funding allocated to female-led startups. These ventures secured a mere $1.8 million across 15 deals in H1 2024, a sharp decline from the $6 million raised by 22 startups in the previous year. This highlights the ongoing challenge of fostering gender diversity within the MENA entrepreneurial ecosystem.
Investment Landscape: A Shift in Geography
Traditionally dominant players like the UAE experienced a shift in VC activity. Saudi Arabia-based VCs emerged as the top regional investors, contributing to a significant 60 deals in H1. They were followed by UAE VCs with 41 deals, and Egyptian VCs with 24 deals. This geographical shift indicates a potential diversification in investment strategies within the region.
Global Investors Take Notice
The MENA tech scene also attracted significant foreign investments. The US led the pack, injecting capital into 31 startups, followed by the UK with 19 rounds. This participation from established players showcases the growing global recognition of the potential within the MENA region.
Active Investors and a Cautiously Optimistic Future
Venture Capital firms like RZM Investment (Saudi Arabia) and Hope Ventures (Bahrain) emerged as the most active investors in H1 2024, participating in seven deals each. Several VC funds were also launched during this period, pledging billions of dollars towards MENA tech companies. While the first half witnessed a slowdown, it could be seen as a period of consolidation and strategic planning. The influx of new funds and potential diversification of investment portfolios based on global economic factors paints a cautiously optimistic picture for Q3 and beyond.
Investment Jumps 413% Month-over-Month
The Middle East and North Africa (MENA) startup ecosystem saw a significant increase in funding in May 2024. Startups raised a total of $282 million, a massive 413% jump compared to April's $55 million. This growth was driven by debt financing, which contributed nearly $140 million.
However, despite the impressive monthly growth, the total deal value dropped by 58% year-over-year from $445 million in May 2023.
UAE Leads in Investment, Proptech Takes Top Spot
The United Arab Emirates (UAE) attracted the most investment, with startups securing $189 million across 23 deals. Saudi Arabia followed with $56 million, and Egypt came in third with $24.5 million.
The proptech sector emerged as the leader in terms of funding, even excluding Property Finder's $90 million debt round. Proptech startups raised $167.2 million over seven deals. Fintech followed with $32.7 million, and logistics startups secured $25.3 million.
Later-Stage Funding Gains Traction
May witnessed a focus on later-stage funding rounds. Five startups raised $59.3 million in Series A rounds, and another four secured $44 million in pre-Series A rounds. Seed funding remained active with seven deals totaling $11 million.
B2C Model Dominates, Female Founders See Slight Increase
The business-to-consumer (B2C) model attracted the majority of funding, with startups raising $174 million across 13 deals. Business-to-business (B2B) startups secured nearly $100 million.
While male founders continued to dominate, attracting 89% of the total investment, May saw a rise in deals involving female co-founders. The number of deals doubled from April, securing $28.6 million. However, startups founded solely by women received only $800,000.
Active VC Landscape in the Region
May saw significant activity in the venture capital (VC) space. Several new funds were launched, with a focus on the Saudi ecosystem. These included a $100 million fund by BIM Ventures and Japan's SBI Holdings, a $250 million healthcare fund by TVM Capital Healthcare, and a $30 million commitment by Saudi Venture Capital to a US-based firm for investment in Saudi startups.
Investment firms from other regions also entered the MENA market. Singapore's Golden Gate Ventures launched a $100 million MENA fund, while Bahrain's Investcorp closed a $570 million fund and Shorooq Partners partnered with Korea's IMMG for a $100 million fund.
Saudi Arabia's Kingdom Holding Invests in Global AI Startup
It's noteworthy that Saudi Arabia's Kingdom Holding participated in a $6 billion Series B round for Elon Musk's artificial intelligence (AI) startup, xAI.
Investment Jumps 413% Month-over-Month
The Middle East and North Africa (MENA) startup ecosystem saw a significant increase in funding in May 2024. Startups raised a total of $282 million, a massive 413% jump compared to April's $55 million. This growth was driven by debt financing, which contributed nearly $140 million.
However, despite the impressive monthly growth, the total deal value dropped by 58% year-over-year from $445 million in May 2023.
UAE Leads in Investment, Proptech Takes Top Spot
The United Arab Emirates (UAE) attracted the most investment, with startups securing $189 million across 23 deals. Saudi Arabia followed with $56 million, and Egypt came in third with $24.5 million.
The proptech sector emerged as the leader in terms of funding, even excluding Property Finder's $90 million debt round. Proptech startups raised $167.2 million over seven deals. Fintech followed with $32.7 million, and logistics startups secured $25.3 million.
Later-Stage Funding Gains Traction
May witnessed a focus on later-stage funding rounds. Five startups raised $59.3 million in Series A rounds, and another four secured $44 million in pre-Series A rounds. Seed funding remained active with seven deals totaling $11 million.
B2C Model Dominates, Female Founders See Slight Increase
The business-to-consumer (B2C) model attracted the majority of funding, with startups raising $174 million across 13 deals. Business-to-business (B2B) startups secured nearly $100 million.
While male founders continued to dominate, attracting 89% of the total investment, May saw a rise in deals involving female co-founders. The number of deals doubled from April, securing $28.6 million. However, startups founded solely by women received only $800,000.
Active VC Landscape in the Region
May saw significant activity in the venture capital (VC) space. Several new funds were launched, with a focus on the Saudi ecosystem. These included a $100 million fund by BIM Ventures and Japan's SBI Holdings, a $250 million healthcare fund by TVM Capital Healthcare, and a $30 million commitment by Saudi Venture Capital to a US-based firm for investment in Saudi startups.
Investment firms from other regions also entered the MENA market. Singapore's Golden Gate Ventures launched a $100 million MENA fund, while Bahrain's Investcorp closed a $570 million fund and Shorooq Partners partnered with Korea's IMMG for a $100 million fund.
Saudi Arabia's Kingdom Holding Invests in Global AI Startup
It's noteworthy that Saudi Arabia's Kingdom Holding participated in a $6 billion Series B round for Elon Musk's artificial intelligence (AI) startup, xAI.
Eight Arab startups compete for $30,000 prize in Mega Green initiative
18 May 2024 Written by Admin AdminPepsiCo, SABIC, and AstroLabs have unveiled the names of the eight startups selected to participate in the Mega Green initiative in the Middle East and North Africa (MENA) region.
The initiative aims to support young entrepreneurs and develop innovative solutions to address sustainability challenges in the region.
These startups are distinguished by offering innovative solutions in the fields of agriculture, water, and energy, which contributes to driving the circular economy, supporting the transition to clean energy, and mitigating the effects of climate change.
Over the next six months, the selected startups will receive support and guidance from experienced industry experts, as well as the opportunity to work with market players to expand their solutions.
By the end of the program, one company will win a cash prize of $30,000 to enable it to continue to grow and thrive.
The selected startups:
- Viridia Tech-Egypt: Provides a large-scale crop analysis platform to help agricultural companies improve productivity, profitability, and adopt better sustainable practices.
- P-VITA-Egypt: A biotechnology center specialized in producing natural raw materials for the cosmetics, food, and beverage industries. The company uses artificial intelligence and Internet of Things (IoT) technologies to automate operations, which reduces the carbon footprint.
- Mrüna-Flexibility-UAE: A consulting and distribution company working on developing innovative civil solutions.
- The Surpluss-UAE: A climate tech startup that helps SMEs reduce greenhouse gas emissions in a profitable way by sharing resources through digital sustainability service exchange.
- Mirai Solar-Saudi Arabia: A startup working in solar energy technologies, specializing in expanding the uses of solar energy beyond traditional applications, aiming to improve energy efficiency in food production operations, smart buildings, and support sustainable future building.
- AHYA TECHNOLOGIES-Saudi Arabia: A climate software and AI startup working on building a unified platform to scale up climate action in the MENA and Pakistan region.
- YY ReGen-Lebanon: Specializes in providing innovative solutions to support renewable energy use, sustainable water management, and support for renewable agricultural practices.
- Kumulus-Tunisia: A startup working in water technology, using innovative machines to generate water in the atmosphere, helping to convert air into fresh water. The company aims to contribute to providing drinking water in a sustainable, convenient, and cost-effective way for hotels and businesses across the MENA and Southern Europe regions.
The importance of the Mega Green initiative:
- Supporting young entrepreneurs and developing innovative solutions to address sustainability challenges in the region.
- Providing a platform for startups to showcase their solutions and connect with market players.
- Helping startups grow and thrive through funding and mentorship.
The Mega Green initiative is a significant example of the commitment of large companies to supporting sustainability in the region. By supporting young entrepreneurs, we can ensure a more sustainable future for generations to come.
MENA Startups Navigate a Cautious Start, Securing $86.5 Million in January Funding
03 Mar 2024 Written by Admin AdminThe MENA startup ecosystem witnessed a cautious yet promising start in January 2024, with startups securing a total of $86.5 million in funding across 33 deals. While this marked a 34% decrease year-on-year, it serves as a bellwether for the year's funding activity, offering insights into the region's entrepreneurial landscape and investment trends.
Regional Funding Breakdown
UAE: Reclaimed Position as Regional Leader
The United Arab Emirates (UAE) emerged as the regional leader, with its startups collectively securing an impressive $47 million in funding. Notably, the largest funding round of the month, a substantial $35 million pre-seed investment in the travel tech disruptor, Tumodo, underscored the region's confidence in the potential of the travel sector.
Egypt: Encouraging Signs of Recovery
Egypt showcased encouraging signs of recovery, raising $23 million across seven deals. This positive trend represents a significant improvement from the previous month and signals a potential return to form for the nation's entrepreneurial scene.
Saudi Arabia: Consistent Activity and Funding
Saudi Arabia maintained its consistent activity, with 15 startups securing a combined $11 million. While not leading the pack in funding, Saudi Arabia continues to demonstrate a stable and promising startup environment.
Other Countries: Diverse Funding Landscape
The funding distribution extended beyond the top three countries, highlighting the diverse landscape of the MENA region. Countries such as Qatar, Morocco, Iraq, Oman, Lebanon, and Tunisia also witnessed funding activity, showcasing the breadth and potential of the region's entrepreneurial spirit.
Sector Analysis
Fintech: Slight Slowdown in Funding
While fintech remains the region's most active sector, it experienced a slight slowdown in January, with five startups raising $12 million. Despite the dip, fintech continues to play a crucial role in the MENA startup ecosystem.
Travel Tech: Impressive Performance and Potential
Travel tech unexpectedly emerged as the top-performing sector, propelled by Tumodo's significant funding round, totaling $40.6 million. This investment highlights the sector's potential for post-pandemic recovery and investor confidence.
Healthcare: Promising Growth and Investor Interest
The healthcare sector exhibited promising growth, with two startups securing $11 million. This indicates growing investor interest in addressing critical healthcare challenges within the region.
Mobility: Attracting Investment and Opportunities
The mobility sector also saw three startups raise over $5 million, signaling opportunities and investor confidence in addressing transportation and mobility needs.
Startup Funding Distribution
Early-stage and seed-stage startups continued to attract substantial funding, garnering a combined $53 million. This highlights the region's commitment to nurturing its entrepreneurial ecosystem and fostering innovation. Additionally, B2B startups raised over $57 million across 14 deals, while B2C startups secured $28 million across 18 deals.
However, the gender disparity in investment remains a concern, with only one female-founded startup managing to secure funding. This underscores the need for continued efforts to promote diversity and inclusion within the MENA startup landscape.
MENA Startup Funding Distribution
UAE: Regional Powerhouse
The UAE established itself as the undisputed leader, securing a staggering $47 million in funding. This dominant position underscores the strength and maturity of the UAE's startup ecosystem, attracting significant investor confidence.
Egypt: Emerging Phoenix
Egypt showcased encouraging signs of revival, raising $23 million across seven deals. This positive shift marks a significant improvement and signals a potential return to form for the nation's entrepreneurial scene.
Saudi Arabia: Steady Progress
Saudi Arabia maintained its consistent activity with 15 startups securing a combined $10.7 million. While not leading the pack this time, Saudi Arabia continues to demonstrate a stable and promising startup environment.
Beyond the Big Three: Funding Distribution in Other Countries
The funding distribution extends beyond the top three, highlighting the diverse landscape of the MENA region. Qatar, Morocco, Iraq, Oman, Lebanon, and Tunisia all witnessed funding activity, showcasing the breadth and potential of the region's entrepreneurial spirit.
Nurturing the Future
Early-stage startups, encompassing both Pre-Seed and Seed funding rounds, received the highest share, attracting a combined $52 million. This signifies a strong emphasis on fostering and supporting the next generation of innovative ventures within the region. Following closely behind were Pre-Series A and Series A funding rounds, collectively securing $20 million, demonstrating continued support for established startups poised for further growth. Finally, the "Other" category, encompassing various funding stages and types, received $17.8 million, further emphasizing the diverse nature of the investment landscape.
Sector Spotlight
Travel & Tourism unexpectedly emerged as the top sector, grabbing a surprising $40.6 million, largely driven by the massive pre-seed round secured by Tumodo. This significant investment highlights the potential and investor confidence in the sector's post-pandemic recovery. Fintech, the region's traditionally dominant sector, maintained its relevance with $12 million distributed across five deals, solidifying its continued importance within the MENA startup ecosystem. Meanwhile, the healthcare and mobility sectors also displayed promising growth, attracting $11 million and $5 million respectively, indicating growing investor interest in these critical areas.
The comprehensive analysis of the MENA startup funding landscape reveals a dynamic and multifaceted ecosystem. The region boasts a prominent leader in the UAE, an emerging force in Egypt, and consistent activity across numerous other countries. The funding distribution across stages and sectors unveils a strategic focus on nurturing early-stage ventures, supporting established startups, and exploring new avenues of innovation. As the region continues to evolve, this diverse and promising ecosystem holds immense potential for future growth and groundbreaking advancements.
المنظمة العالمية لحماية حقوق الملكية الفكرية تفتح باب التقدم للفوز بإحدى جوائز الويبو العالمية لعام 2024
01 Mar 2024 Written by Admin Adminبيان صادر عن المنظمة العالمية لحماية حقوق الملكية الفكرية:
يسعدنا أن نعلن عن الدعوة للمشاركة في جوائز الويبو العالمية لعام 2024، التي تفتتح من 15 كانون الثاني / يناير ولغاية 31 اذار/ مارس 2024.
وترحّب المسابقة هذا العام بالشركات الناشئة إلى جانب الشركات الصغيرة والمتوسطة من جميع أنحاء العالم، والتي تنشط في جميع قطاعات الاقتصاد - سواء في التكنولوجيا أو الزراعة أو الصناعات الإبداعية أو غيرها. ونرحب بالطلبات التي تستخدم جميع أشكال الملكية الفكرية، من حق المؤلف والعلامات التجارية والبراءات والمؤشرات الجغرافية.
ونموذج الطلب متاح باللغات الإنكليزية والفرنسية والإسبانية والعربية والصينية والروسية واليابانية.
وستختار لجنة تحكيم مستقلة مجموعة تصل إلى سبعة فائزين. وسيتلقى كل منهم دعوة لحضور حفل توزيع الجوائز خلال الجمعية العامة للويبو في شهر يوليو في جنيف.
وسيحصل كل فائز وفائزة أيضاً على برنامج توجيهي خاص وموجّه نحو تعزيز استخدام الملكية الفكرية، والسعي وراء أهداف تجارية جديدة، والنفاذ إلى الموارد المالية، وإحداث تأثير أكبر.
لمزيد من المعلومات، يرجى زيارة موقع جوائز الويبو العالمية: https://www.wipo.int/global-awards/ar/how-to-apply.html
-انتهى-
عن الويبو:
الويبو هي منظمة دولية تابعة للأمم المتحدة تهدف إلى تنظيم حقوق الملكية الفكرية على مستوى العالم. تأسست عام 1970، بعد انعقاد مؤتمرات مهمة مثل مؤتمر باريس للملكية الصناعية (1883) ومؤتمر حماية المصنفات الأدبية والفنية (1886).
معلومات إضافية:
- الموقع الرسمي : https://www.wipo.int/portal/ar/index.html
- تاريخ تأسيس الويبو: 1970
- المقر الرئيسي: جنيف، سويسرا
- عدد الدول الأعضاء: 193 دولة
