Saudi Arabia and the UAE led MENA startup funding in September, according to Rasmal research.
The US data platform reported that the MENA startup sector raised $328.3M across 60 startups in September 2024, backed by 36 different investors, indicating growing confidence in the region’s entrepreneurial talent.
Saudi Arabia attracted the largest share, securing $165.34M, which accounted for over half of the total funding for 13 startups. This investment surge reflects the Kingdom’s ongoing efforts to diversify its economy under the Vision 2030 strategy, focusing on sectors like technology and innovation.
Cities such as Riyadh and Jeddah are becoming key hubs for startups, supported by government initiatives and private investments. Meanwhile, the UAE secured $114.32M, with Dubai’s business-friendly policies continuing to attract investors. In September, 28 UAE-based startups received funding, with FinTech, e-commerce, and PropTech as the leading sectors.
While Saudi Arabia and the UAE dominated, other countries like Egypt raised $25.09M, focusing on tech and innovation, while Bahrain, Oman, and Morocco showed potential with smaller investments. However, Iraq and Kuwait still face challenges in attracting substantial venture capital.
FinTech emerged as the leading sector, receiving $134.84M, while logistics technology also gained interest due to the e-commerce boom. Late-stage startups garnered $129.08 million, reflecting a preference for established ventures.
Despite the overall growth, a gender funding gap remains, with male founders receiving 96.79% of the total funds. Notable startups funded include SHIFT, which raised $83M, highlighting the importance of logistics tech in the region’s e-commerce landscape.
Overall, the MENA region continues to present significant opportunities for both startups and investors.
