MENA Startup Ecosystem Attracts $2.3B in Investments in 2024, Marking a 42% YoY Decline

The startup ecosystem in the Middle East and North Africa (MENA) attracted $2.3 billion in investments in 2024, marking a 42% decline compared to the previous year.

MENA startup ecosystem attracted $2.3 billion in 2024

Despite a 42% decline in investment value compared to the previous year, the number of deals grew to 610, reflecting a 3.5% year-on-year increase.

Capital inflows rose in the second half of the year, reaching $1.5 billion – a 37% increase compared to the first half of 2024. However, ecosystem activity slowed in the fourth quarter, with $698 million secured across 156 deals, down from the $729 million raised in Q3 by 168 startups.

The year overall saw fewer mega deals, except for the combined $257.5 million raised by Dubai-based eyewear startup, Eyewa, and Egypt’s MNT-Halan, the report noted.

Fintech sector accounted for 30% of total investments, maintaining its dominance since 2022. This highlights its strong investor appeal, with $700 million secured across 119 fintech startups.

From a country point of view:

The Gulf Cooperation Council (GCC) countries emerged as the top-funded region in 2024, with:

Saudi Arabia: $1.2 billion in startup funding across 200 deals

United Arab Emirates: $700 million in startup funding across 180 deals

Bahrain: $100 million in startup funding across 20 deals

Oman: $75 million in startup funding across 15 deals

Kuwait: $60 million in startup funding across 10 deals

Qatar: $50 million in startup funding across 12 deals

In North Africa:

Egypt: $300 million in startup funding across 70 deals

Tunisia: $20 million in startup funding across 10 deals

Algeria: $15 million in startup funding across 5 deals

Morocco: $10 million in startup funding across 4 deals

Libya: $5 million in startup funding across 2 deals

Smaller ecosystems, including Palestine, Iraq, and Lebanon, attracted modest investments, each receiving less than $15 million. However, the GCC region holds strong growth potential, driven by government initiatives designed to enhance startup ecosystem activity.