The Middle East and North Africa (MENA) startup scene continues to thrive, with a total of $328.3 million raised across 60 startups in September 2024. According to the latest report by Rasmal, this impressive amount was secured through investments from 36 different investors, signaling growing confidence in the region’s innovative ventures and entrepreneurial talent.
Saudi Arabia led the way, attracting $165.34 million in funding that comprises more than half of the total capital raised across 13 startups in MENA. This surge in investment reflects the Kingdom’s ongoing efforts to diversify its economy under its Vision 2030 strategy, which prioritizes growth in sectors like technology and innovation. Saudi cities, particularly Riyadh and Jeddah, are emerging as key hubs for startups, benefiting from both government initiatives and private investment.
The report also highlighted the UAE as a major player in the region’s startup ecosystem, bringing in $114.32 million in total funding. Dubai, known for its business-friendly policies and strategic global position, continues to draw interest from investors. In September alone, 28 UAE-based startups secured funding, solidifying the country’s lead in terms of the number of funded ventures. FinTech, e-commerce, and property technology (PropTech) remain top sectors for investors in the UAE.
Rising Stars and New Markets
While Saudi Arabia and the UAE grabbed the lion’s share of the investment, other countries in the region are also beginning to gain traction. Egypt secured $25.09 million, with a strong focus on tech and innovation, while Bahrain, Oman, and Morocco showed potential with smaller but growing investments. In contrast, countries like Iraq and Kuwait continue to face challenges in attracting significant venture capital, highlighting the uneven distribution of funds across the MENA region.
The Rasmal report provided a detailed breakdown of the industries that received the most funding, with FinTech emerging as a clear leader. In total, $134.84 million went into financial technology startups, reflecting the region’s rapid adoption of digital financial solutions and services. Logistics technology (LogTech) also attracted substantial interest, as the e-commerce boom continues to drive demand for more efficient and tech-driven supply chain solutions.
Late-Stage Startups See Major Gains
Investment in late-stage startups dominated in September, with these more established companies securing $129.08 million of the total. This trend reflects a growing investor preference for ventures that have already demonstrated strong market performance and scalability. While these mature companies grabbed the spotlight, early-stage startups were still an important part of the ecosystem, with seed-stage ventures raising $57.30 million across 33 deals.
This dynamic highlights the region’s healthy mix of emerging and established companies, supported by a growing network of incubators, accelerators, and government-backed initiatives aimed at fostering innovation at all levels.
Gender Imbalance in Funding
Despite the encouraging overall growth, the report also shed light on a persistent issue: the gender disparity in startup funding. Male founders secured 96.79% of the total funds raised in September, while female founders received just 3.21%. This stark contrast underscores the need for more inclusive investment practices in the region, with increased support for female-led startups being crucial for a more balanced and diverse entrepreneurial landscape.
Key Success Stories
Some of the standout startups that received funding in September include SHIFT, a logistics and transport technology company, which raised a whopping $83 million marking the largest single investment of the month. The success of SHIFT is a testament to the growing importance of logistics tech in supporting the region’s expanding e-commerce sector.
Other notable startups include Syarah, an online marketplace for car sales, which attracted $40 million, and TON, a FinTech firm that secured $30 million in investment. These companies represent the diversity of industries gaining traction across the region and the breadth of opportunities for investors looking to tap into MENA’s burgeoning startup ecosystem.
Looking Ahead
The MENA region’s startup ecosystem is poised for continued growth, showcasing strong investor interest in key markets like Saudi Arabia and the UAE. FinTech and LogTech remain highly attractive sectors, while other industries are starting to catch up. However, challenges such as the gender funding gap and underdeveloped markets in countries like Iraq and Kuwait still need to be addressed.
As more investors, entrepreneurs, and governments come together to foster innovation and growth, the future looks promising for startups across MENA. With robust government support, an increasingly tech-savvy population, and a favorable business environment, the region is well-positioned to remain a key player in the global startup landscape.
Altogether, the September 2024 funding data reinforces the MENA region’s status as a growing hotspot for startups and investment. With $328.3 million raised, the ecosystem continues to thrive, offering significant opportunities for both entrepreneurs and investors alike.
About Rasmal
Rasmal is a U.S.-based, data-driven digital media and intelligence platform focused on the MENA startup ecosystem. Through comprehensive research, news, and insights, Rasmal empowers entrepreneurs, investors, and stakeholders to navigate and thrive in the region’s fast-evolving startup landscape.
