Despite the slow start to 2024, the MENA startup ecosystem remains dynamic, with startups across various sectors securing investments to fuel their growth and innovation.
As the new year began, startup funding in the Middle East and North Africa (MENA) region saw a decline, with investments totaling $86.5 million in January, marking a significant drop from December 2023’s $1.15 billion. This figure also represented a 34 percent decrease from January 2023’s $103 million.
UAE Leads Startup Funding
The United Arab Emirates (UAE) led the region in startup funding, securing $47 million across 10 deals. Notably, travel tech startup Tumodo received a substantial $35 million in pre-seed funding, contributing significantly to the UAE’s total.
Resilience in Egypt and Saudi Arabia
Despite the overall sluggish pace, startups in Egypt showcased resilience, raising $23 million through seven deals. Saudi Arabia followed closely with $10.7 million across 10 transactions.
Sector-Wise Distribution
Travel tech emerged as a leading sector, propelled by Tumodo’s funding round, followed by fintech with five startups raising $12 million. Health tech and mobility startups also saw notable activity, securing significant investments.
Focus on Early-Stage Startups
The majority of deals in January targeted pre-seed and seed stage startups, accounting for almost $53 million of the total funding.
Gender Disparity in Investment
Despite efforts to promote diversity, funding for female-founded startups remained low, with only one securing investment compared to 29 male-founded startups.
Proptech Startup Rize Secures $2.9 Million
Saudi Arabia-based proptech startup Rize successfully raised $2.9 million in a seed funding round, aiming to further expand its innovative rent now, pay later model.
Kuwait’s Bookr Closes Bridge Funding Round
Kuwaiti-based startup Bookr, a software-as-a-service-enabled marketplace for beauty services, completed a bridge funding round to enhance its platform and expand across the Gulf Cooperation Council region.
UAE’s CAMB.AI Raises $4 Million
UAE-based artificial intelligence dubbing startup CAMB.AI secured $4 million in a seed funding round, led by Courtside Ventures, to accelerate its technological advancements and international market penetration.
Saudi Fintech IBDA Real Estate Receives Shariah Certification
IBDA Real Estate, a Saudi-based fintech platform facilitating real estate investments, obtained Shariah certification from Bahrain’s Shariyah Review Bureau, enhancing its appeal to investors seeking Shariah-compliant opportunities.
Conclusion
Despite the slow start to 2024, the MENA startup ecosystem remains dynamic, with startups across various sectors securing investments to fuel their growth and innovation. Efforts to address gender disparities and promote diversity continue, underscoring the region’s commitment to fostering a vibrant and inclusive entrepreneurial landscape.