MENA Startups Secure $328.3M in September 2024

Key Highlights:

• In September 2024, the MENA startup ecosystem witnessed significant growth, with 60 startups raising a total of $328.3 million from 36 investors.
• Saudi Arabia emerged as the leading country in funding, securing $165.34 million, while the United Arab Emirates followed closely with $114.32 million, underscoring their dominant positions in the region’s startup landscape.
• The funding distribution showed a notable gender disparity, with male founders receiving 96.79% of total funding compared to only 3.21% for female founders in the MENA.

The startup ecosystem in the Middle East and North Africa (MENA) region continues to grow rapidly, and the September 2024 funding report offers a wealth of insights into the latest trends and developments shaping the market.

This report by Rasmal not only provides a detailed breakdown of the funds raised, the number of startups, and key players but also uncovers the underlying dynamics driving innovation and investment across the region. As a reflection of MENA’s evolving economy, the data highlights key countries, sectors, funding stages, and gender disparities, offering a complete picture of the entrepreneurial and investment landscape.

From Saudi Arabia’s dominant presence in total funding to the United Arab Emirates’ leadership in startup count, this report examines the patterns that have emerged during September. It also contrasts these findings with the previous month, August 2024, helping to chart the ebb and flow of investment in the region.

Through this in-depth analysis, the September 2024 funding report provides invaluable insights for stakeholders, including investors, entrepreneurs, and policymakers, who are eager to understand the future trajectory of MENA’s vibrant startup ecosystem.

Table Of Contents

MENA’s Funding Landscape in September 2024

September 2024 marked a significant period for startups in the MENA region, with 60 startups securing a total of $328.3 million in funding from 36 investors. These numbers represent the robustness and vitality of the entrepreneurial ecosystem in the region, underscoring the growing interest from both local and international investors.

The funding distribution shows that certain countries are emerging as clear leaders, with Saudi Arabia and the United Arab Emirates dominating the landscape in terms of both fund amounts and the number of startups.

Breakdown of Funding by Country

The MENA region is vast and diverse, with some countries emerging as clear frontrunners in the race for venture capital and startup investment. September 2024 saw Saudi Arabia Startup Ecosystem take the lead with a remarkable $165.34 million in funding.

This accounted for just over half of the total funding raised in the entire region. Saudi Arabia’s large share of the funding pie is a testament to the nation’s growing commitment to developing its tech and innovation sectors as part of its Vision 2030 goals.

• Saudi Arabia: $165.34 million
• United Arab Emirates (UAE): $114.32 million
• Egypt: $25.09 million
• Bahrain: $16.20 million
• Oman: $3.31 million
• Morocco: $2.97 million
• Kuwait: $1.00 million
• Iraq: $0.13 million

The United Arab Emirates (UAE) followed closely with $114.32 million in funding. With its strategic location, business-friendly policies, and vibrant hubs like Dubai and Abu Dhabi, the UAE continues to attract a broad range of startups, especially in technology-driven sectors such as FinTech, PropTech, and e-commerce.

Other MENA countries saw significantly smaller amounts of funding in September, with Egypt securing $25.09 million, Bahrain receiving $16.2 million, and Oman attracting $3.31 million. Morocco, Kuwait, and Iraq rounded out the list with much smaller amounts, highlighting the uneven distribution of investment capital across the region.

Morocco raised $2.97 million, Kuwait $1.00 million, and Iraq $0.13 million, indicating that while there is some activity in these countries, they lag behind the major players.

The funding distribution is indicative of the increasing concentration of capital in a few key countries. Saudi Arabia and the UAE continue to lead the pack, driven by favourable government policies, strong infrastructure, and a growing appetite for risk among investors.

On the other hand, smaller markets such as Iraq and Kuwait are still struggling to attract significant investment, possibly due to political instability, economic uncertainty, or a lack of infrastructure.

Number of Startups by Country

• United Arab Emirates (UAE): 28 startups
• Saudi Arabia: 13 startups
• Egypt: 8 startups
• Morocco: 3 startups
• Oman: 3 startups
• Bahrain, Iraq, Jordan, Kuwait, and Qatar: 1 startup each

The UAE’s significant number of startups highlights its leadership in creating an environment conducive to innovation. Dubai and Abu Dhabi, in particular, have developed ecosystems that attract entrepreneurs through accelerator programs and favourable tax policies.

Saudi Arabia’s growing startup count reflects the government’s investments in digital infrastructure and entrepreneurship, particularly in key cities like Riyadh and Jeddah. While Egypt remains a strong player with its historical tech focus, smaller markets like Morocco and Oman are beginning to show promise with their emerging startups.

The Role of Key Cities in MENA’s Startup Ecosystem

While the MENA region is composed of numerous countries, a few cities stand out as major hotspots for startup activity. Dubai, in particular, emerged as the city with the highest funding, drawing more investment than any other city in the region.

Known for its thriving business environment and world-class infrastructure, Dubai has become a magnet for both startups and investors. The city has positioned itself as a global hub for innovation, offering numerous incentives for entrepreneurs, from free zones to access to capital, making it the top destination for startups in MENA.

Following Dubai, Jeddah and Riyadh in Saudi Arabia also showed substantial levels of investment activity. As the two largest cities in Saudi Arabia, they are home to numerous initiatives aimed at fostering entrepreneurship. Saudi Arabia’s Vision 2030 has played a crucial role in turning Jeddah and Riyadh into startup hubs, with both cities benefiting from the government’s efforts to diversify the economy and promote non-oil sectors.

Additionally, Cairo in Egypt remains an important city in the MENA startup ecosystem. As Egypt’s capital and largest city, Cairo is known for its entrepreneurial spirit and serves as a gateway to North Africa. While it secured less funding compared to cities in the Gulf region, Cairo’s growing tech scene, coupled with its large, youthful population, makes it an attractive market for both investors and entrepreneurs.

Number of Startups by City

• Dubai, UAE: 25 startups funded, raising $107.32 million, benefiting from strong government initiatives, global investor access, and a robust innovation ecosystem.

• Jeddah, Saudi Arabia: 4 startups funded, securing $83.4 million, driven by Vision 2030 and increasing digital transformation efforts.

• Riyadh, Saudi Arabia: 9 startups funded, raising $65.94 million, fueled by strategic investments in tech and infrastructure growth.

• Cairo, Egypt: 6 startups funded, attracting $24.82 million, with a focus on emerging tech sectors like FinTech and Cleantech.

• Abu Dhabi, UAE: 3 startups funded, receiving $23 million, supported by access to capital and government-backed innovation programs.

• Other Cities: 13 startups funded, attracting $23.82 million, located in various other cities throughout the MENA region.

Dubai maintains its leading position as the most attractive city for startups in the region, with 25 startups in September 2024. Riyadh comes in second with 9 startups, showing rapid growth in Saudi Arabia’s capital as it continues to focus on building a digital economy.

Cairo, with 6 startups, remains a strong player, driven by Egypt’s increasing focus on technology and innovation. Cities like Jeddah, Abu Dhabi, and Muscat also reflected promising growth.

Investment Stages

The investment landscape in MENA is diverse, with startups at various stages of growth attracting different levels of investment. For September 2024, late-stage venture capital (VC) rounds accounted for the highest share of funding accounting for $129.08 Million.

This trend indicates that investors are increasingly placing their bets on more mature startups that have demonstrated traction, scalability, and strong growth potential. These late-stage startups are typically looking for funding to scale their operations, expand into new markets, or launch new product lines.

Seed funding comprising $57.30 Million, however, remains a crucial part of the MENA investment ecosystem, reflecting strong interest in early-stage companies. It highlights that seed funding rounds constituted a significant portion of the total number of startups receiving investment in September.

Series A rounds, which typically follow seed funding, also saw notable activity with $54.70 Millions. These rounds are crucial for startups as they look to solidify their market position, build out their teams, and refine their products. Investors in Series A rounds are often looking for companies with a proven concept and a clear path to profitability.

Number of Startups By Stages

The significant number of 33 startups in the Seed stage reflects the early-stage nature of the MENA ecosystem. It points to a growing interest in nurturing innovation from the ground up, supported by numerous incubators and accelerator programs.

Fewer startups reach Series A and beyond due to challenges such as scaling operations, attracting customers, and securing larger rounds of funding.

The high number of Seed-stage startups shows that the MENA region continues to foster new entrepreneurial ventures, although many startups attract customer bases. This decline as startups move through funding stages indicates a need for increased support mechanisms for founders at each stage of their journey.

Gender Disparity in Startup Funding

• Male Founders: 96.79% of the total funding.
• Female Founders: 3.21% of the total funding.

One of the most striking findings of the September 2024 report is the significant gender disparity in funding for startups. The data reveals that male founders overwhelmingly dominated the funding landscape, securing 96.79% of the total funding amount. In contrast, female founders attracted only 3.21% of the total funds, reflecting a glaring gender gap in the region’s startup ecosystem.

This disparity is not unique to MENA but is a global issue that has been widely documented in various reports on startup funding. However, the MENA region’s numbers highlight the need for greater gender inclusivity in entrepreneurship.

While there are notable success stories of female founders leading innovative startups in the region, the overall representation remains disproportionately low. The lack of access to capital for female founders is a critical issue that needs to be addressed, as it limits the potential for diverse ideas and innovation to flourish.

Industry Breakdown of Funding

When it comes to industry trends, FinTech and LogTech emerged as the dominant sectors in September 2024, securing the largest shares of funding. FinTech startups alone attracted $134.84 million, making it the most-funded sector of the month.

This is not surprising given the global trend toward digital financial services, with MENA being no exception. The rise of FinTech in the region is driven by a young, tech-savvy population and increasing demand for digital banking, payment solutions, and financial inclusion.

LogTech, or logistics technology, also saw significant investment, raising $82.88 million. This sector is becoming increasingly important as e-commerce continues to boom across the region.

Other industries that received substantial funding include software, administration, real estate, and retail technology. These industries reflect the broader trend of digital transformation sweeping across MENA, as businesses in both the private and public sectors look for ways to modernize their operations and improve efficiency.

Number of Startups By the Industry

The FinTech sector leads as the most popular startup industry, with 20 companies, reflecting strong growth in financial technology. Software Development with 7 startups and Healthcare with 4 startups also demonstrate significant activity.

Meanwhile, various other industries such as Agriculture tech, Food, AI, and more are represented by a smaller number of startups, each with one company. This suggests a diverse landscape of startup interests, predominantly centred around technology and financial services.

The Rise of Top Startups: Notable Funding Successes

One of the most exciting aspects of MENA’s startup ecosystem is the rise of high-potential companies that secure significant rounds of funding. In September 2024, several startups distinguished themselves with their ability to raise substantial investment.

The top five startups alone secured a combined total of over $197 million, demonstrating the confidence that investors have in their business models and growth prospects.

• SHIFT: $83 million
• Syarah: $40 million
• TON: $30 million
• PayMob: $22 million
• Ziina: $22 million

The startup that attracted the most attention was SHIFT, a logistics and transport tech company that raised an impressive $83 million. This considerable investment reflects the critical role that logistics technology plays in the region’s rapidly expanding e-commerce and trade sectors. SHIFT’s ability to raise this substantial sum positions it as a key player in the MENA market, with the potential to lead the way in improving supply chain efficiency across various industries.

Following SHIFT, Syarah, an online car marketplace, secured $40 million in funding. Syarah’s business model taps into the growing demand for online vehicle sales in the region, providing a digital platform for car buyers and sellers to connect.

The company’s strong market presence, combined with the increasing shift toward digital solutions in traditionally offline industries like automotive sales, makes it a valuable investment.

Other notable startups that raised significant amounts in September include TON, which secured $30 million, and PayMob and Ziina, both raising $22 million each. TON operates in the FinTech space, providing payment and banking services, while PayMob and Ziina are also involved in digital financial services.

Top Investors Shaping the Future of MENA Startups

Investors play a crucial role in shaping the startup landscape, and the September 2024 report sheds light on the top five investors who made significant contributions to the region’s ecosystem. These investors are not only providing much-needed capital but also bringing expertise, strategic guidance, and valuable networks to the startups they back.

Leading the pack is Merak Capital, which invested $83 million, primarily in SHIFT, the top-funded startup of the month. Merak Capital’s investment strategy is focused on high-growth sectors such as technology and logistics, making it a key player in the region’s venture capital scene.

Elm, a government-owned company that specializes in digital services, follows with an investment of $40 million. Elm’s involvement highlights the growing trend of public sector players becoming increasingly active in the startup ecosystem.

Foresight VC invested $30 Million and EBRD Venture Capital made a significant investment of $22 million, demonstrating the increasing diversity of investors in the MENA region.

Foresight VC, with its focus on early-stage investments, is helping to nurture new companies at the seed and Series A stages, while EBRD Venture Capital, which operates as part of the European Bank for Reconstruction and Development, plays a critical role in fostering entrepreneurship in emerging markets.

Y Combinator, one of the most prestigious startup accelerators in the world, also made a notable investment of $22 million. Y Combinator’s involvement in the MENA startup scene is a clear indication that the region is becoming a hotbed for innovation. The accelerator has a track record of nurturing successful startups globally, and its interest in MENA is a sign that local startups are attracting attention on the world stage.

Month-on-Month (MoM) Analysis: August vs. September 2024

Total Funding Amount

• August 2024: $566 million (including Corporate Rounds)
• September 2024: $328.3 million

Number of Startups

• August 2024: 36 startups
• September 2024: 60 startups

In August 2024, a total of 36 startups secured $566 million in funding. While the number of startups was significantly lower than in September, the total funding amount was much higher, indicating that August saw several large funding rounds, including corporate investments.

The comparison of startup counts reveals that 60 startups received funding in September, almost double the number from August. This growth reflects an expanding startup ecosystem in the MENA region, with more entrepreneurs securing investment.

However, the total funding amount for September was $328.3 million, considerably lower than the $566 million raised in August. This decrease in total funding suggests that while more startups were funded, the average investment size was smaller in September compared to August, which saw some large, late-stage deals.

Funding by Country

August 2024:

• Saudi Arabia: $13.93M
• UAE: $76.87M
• Egypt: $7.87M
• Kuwait: $3.0M
• Tunisia: $1.0M

September 2024:

• Saudi Arabia: $165.34M
• UAE: $114.32M
• Egypt: $25.09M
• Bahrain: $16.20M
• Oman: $3.31M

The funding landscape in the MENA region exhibited significant changes from August to September 2024, reflecting a robust upward trend in investment activity. In August, Saudi Arabia secured $13.93 million, while in September, this figure soared to $165.34 million.

Similarly, the UAE demonstrated a solid performance, moving from $76.87 million in August to $114.32 million in September. This rise indicates a healthy continuation of investment flows into the UAE’s dynamic startup scene, underscoring its status as a hub for innovation and entrepreneurship within the region.

Egypt also showcased positive growth, with funding rising from $7.87 million in August to $25.09 million in September, marking an increase. This substantial growth can be attributed to the growing interest in Egyptian startups, particularly in technology and digital sectors, as the entrepreneurial ecosystem matures.

Number of Startups by Country

August 2024:

• UAE: 19 startups
• Saudi Arabia: 8 startups
• Egypt: 5 startups
• Jordan: 2 startups
• Qatar: 2 startups
• Bahrain: 1 startup

September 2024:

• UAE: 28 startups
• Saudi Arabia: 13 startups
• Egypt: 8 startups
• Morocco: 3 startups
• Oman: 3 startups
• Bahrain: 1 startup

The number of startups by country between August 2024 and September 2024 reveals significant growth in entrepreneurial activity across the MENA region. In August, the United Arab Emirates (UAE) led the way with 19 startups, while Saudi Arabia followed with 8 startups. Egypt contributed 5 startups, and both Jordan and Qatar had 2 startups each. Bahrain reported a single startup during this period.

By September 2024, the landscape shifted dramatically. The UAE maintained its position as the leader, but the number of startups surged to 28, representing an increase of 7 startups. Saudi Arabia also saw impressive growth, climbing from 8 to 13 startups signalling a robust interest in entrepreneurship within the kingdom.

Egypt demonstrated a positive trend as well, growing from 5 to 8 startups, reflecting an increase in its startup count. Bahrain’s startup count remained stable at 1, suggesting potential stagnation in entrepreneurial activity compared to other countries in the region.

Funding by Stage

August 2024:

• Corporate Round: $463M
• Seed: $69.07M
• Series A: $19M

September 2024:

• Late VC: $129.08M
• Seed: $57.30M
• Series A: $54.70M

In August 2024, the total funding amount reached an impressive $463 million for the Corporate Round, with additional funding of $69.07 million for Seed rounds and $19 million for Series A. This indicates a strong preference for larger investments, particularly in the Corporate Round, where investors were inclined to back established companies that could yield substantial returns.

Conversely, September 2024 showcased a noteworthy transformation, with funding concentrated in Late VC, which attracted $129.08 million. This shift indicates that investors were focusing on mature startups, likely those with proven business models and traction in the market.

Seed stage funding experienced a decline from $69.07 million in August to $57.30 million in September. This decrease suggests a cautious approach from investors regarding early-stage companies, perhaps reflecting concerns over market conditions or a strategic shift towards supporting more established ventures.

Series A funding, however, displayed a surprising increase from $19 million in August to $54.70 million in September, indicating renewed investor interest in mid-stage startups.

Gender-Based Funding Distribution

August 2024:

• Male Founders: 83.03% of total funding
• Female Founders: 2.42% of total funding
• Mix: 14.55% of total funding

September 2024:

• Male Founders: 96.79% of total funding
• Female Founders: 3.21% of total funding

The comparison of gender-based funding distribution between August and September 2024 reveals a concerning trend in the MENA startup ecosystem, particularly regarding the funding of female entrepreneurs.

In August 2024, male founders secured 83.03% of the total funding, while female founders received a mere 2.42%. This significant disparity was somewhat mitigated by a mixed category, which accounted for 14.55% of the funding.

However, the situation worsened in September 2024. The proportion of funding awarded to male founders rose sharply to 96.79%, while funding for female founders increased slightly to 3.21%.

Industry Breakdown of Funding

August 2024:

• FinTech: $47.20M
• Manufacturing: $15M
• IT: $11.20M
• Media & Entertainment: $10.00M
• Business Development: $6.60M

September 2024:

• FinTech: $134.84M
• Logistics (LogTech): $82.88M
• Software Development: $52.6M
• Administration: $16.2M
• Real Estate Tech: $7.8M
• RetailTech: $5.7M

In August 2024, the FinTech sector led the way with a significant funding amount of $47.20 million, highlighting its ongoing importance in the market. However, in September 2024, FinTech saw a remarkable surge in funding, reaching $134.84 million, marking an impressive increase that demonstrates the continued investor confidence in this industry. This sharp rise indicates that despite prior fluctuations, FinTech remains a dominant player, attracting substantial capital.

A noteworthy development in September was the emergence of Logistics (LogTech), which secured $82.88 million in funding. This sector had not been highlighted in the previous month but has evidently gained traction, reflecting a growing emphasis on supply chain efficiency and innovative delivery solutions. The increased funding in this area may be attributed to the rapid growth of e-commerce and the demand for robust logistics solutions to support it.

The Software Development industry also garnered considerable attention in September, with funding amounting to $52.6 million. This indicates a shift in investor focus toward technological advancements, which are crucial for enhancing operational efficiencies across various sectors.

Other sectors, such as Administration and Real Estate Tech, attracted funding of $16.2 million and $7.8 million, respectively. These figures show a diversification of investment interests beyond traditional tech sectors, suggesting that investors are exploring opportunities in emerging areas.

RetailTech, with $5.7 million in funding, signifies a new frontier for innovation, although the figure is lower compared to other sectors. This growth in the retail sector indicates a potential for transformation, as technology continues to reshape consumer interactions and business models.

Challenges and Opportunities in MENA’s Startup Ecosystem

While the MENA startup ecosystem is growing rapidly, it still faces several challenges that could impact its future development. One of the most pressing issues is the lack of access to funding for early-stage startups, especially in smaller countries within the region.

Although Saudi Arabia and the UAE dominate the funding landscape, other countries like Iraq, Kuwait, and Morocco struggle to attract significant investment. This disparity is due to several factors, including political instability, weak infrastructure, and limited investor networks.

In addition to geographic challenges, the region also faces a lack of diversity in its founder base. As highlighted earlier, female founders receive only a fraction of the total funding, reflecting deep-rooted gender inequalities in the startup ecosystem.

Despite these challenges, there are also numerous opportunities for growth. The rise of FinTech and LogTech offers immense potential, particularly as the region’s digital economy continues to expand.

Additionally, government initiatives in countries like Saudi Arabia, the UAE, and Egypt are creating favourable environments for startups, with increased access to capital, mentorship programs, and infrastructure support. As these efforts gain momentum, the region is poised to become a global hub for innovation and entrepreneurship.

Furthermore, the influx of international investors, such as Y Combinator and EBRD, signals growing global interest in MENA startups. This international attention could open up new markets and opportunities for collaboration, helping local startups scale and compete on a global stage.

Overview of MENA Startups in Q3 2024

The third quarter of 2024 marked a remarkable period for the Middle East and North Africa (MENA) startup ecosystem. From July to September, startups in the region experienced a surge in funding, reflecting the region’s growing appeal to both local and international investors. This influx of capital also showcases the increasing maturity of the startup landscape, with businesses across various stages of development securing significant investments.

In Q3 2024, MENA startups experienced substantial growth, with over $1.11 billion raised across July, August, and September across 143 startups, marking a promising period for the region’s entrepreneurial ecosystem. July kicked off with 40 startups securing $215.84 million in funding, with most of this capital coming from venture rounds totaling $157.5 million.

• Total Funding in July: $215.84M
• Total Number of Startups in July: 40

Early-stage startups saw strong investor interest, but gaps in later-stage funding, particularly in Series A, became evident. Series A rounds only accounted for $44.6 million, suggesting a need for more support as these startups scale.

August proved to be a record month, with 43 startups raising $566 million. Corporate investors played a key role, contributing $463 million, indicating a strategic shift as corporations increasingly invest in startups to align with their long-term goals.

• Total Funding in August: $566M
• Total Number of Startups in August: 43

Seed-stage funding also showed strength, with $69.07 million allocated to new ventures, though Series A funding continued to lag at $19 million. Pre-seed funding totaled $10.75 million, and $0.31 million was granted to impact-driven projects, underscoring the growing focus on innovation across all startup stages.

September sustained this upward momentum, with 60 startups raising $328.3 million. Saudi Arabia and the UAE led in terms of both capital raised and the number of startups funded.

• Total Funding in September: $328.3M
• Total Number of Startups in September: 60

Late-stage VC rounds dominated, accounting for $129.08 million, reflecting investor confidence in more mature startups. Seed funding remained critical, contributing $57.30 million, while Series A rounds showed improved activity with $54.70 million secured.

Top 3 Notable Startups in Q3 2024

The third quarter saw several standout deals that highlighted both the diversity of industries represented and the significant capital flowing into the MENA region.

The top three notable deals in Q3 2024 highlight the strength of MENA’s startup ecosystem.

• MNT-Halan, a leading FinTech company based in Egypt raised $157.5 million in a venture round in July, solidifying its position as a key player in the region’s financial technology sector.
• SHIFT, a logistics and transport tech company, raised $83 million, leading the quarter with its focus on optimising regional logistics.
• Syarah, an online car marketplace, secured $40 million, benefiting from the region’s increasing digitalization of traditional industries.

Overview of MENA Startup Deals in Q3 2024

In the third quarter of 2024, the MENA region witnessed several high-profile startup deals across diverse industries, highlighting the growing investor interest in the region.

In July, MNT-Halan, a FinTech leader, secured the largest deal of the month with $157.5 million in a venture round. Other significant deals included Intelmatix, raising $20 million, and OTO Global and Revibe, each securing $8 million and $7 million, respectively, in Series A rounds. DAOBase, a blockchain platform, raised $6 million in seed funding, further reflecting the region’s expanding interest in blockchain technology.

August saw the UAE’s Yuze Digital, a FinTech startup, lead with a $30 million funding round, while E Daddy, a manufacturing startup, raised $15 million, indicating a growing push towards non-oil industries. Media and entertainment platform Myco raised $10 million, and Saudi-based Resal secured $9 million. Mealplanet, a UAE food and beverage marketplace, attracted $6 million in seed funding.

September brought notable investments in logistics, with SHIFT raising $83 million. Syarah, an online car marketplace, raised $40 million, while TON secured $30 million. FinTech startups PayMob and Ziina each attracted $22 million, underscoring the ongoing dominance of FinTech and logistics in the region.

Key Trends Shaping the MENA Startup Growth 2024

1. Rise of Corporate Investments

Corporate investors are playing an increasingly important role in the MENA startup ecosystem, particularly in sectors like e-commerce, logistics, and manufacturing. The large-scale corporate rounds in Q3 2024, particularly in August, reflect the growing interest of established companies in backing startups that align with their strategic objectives.

2. Continued Focus on FinTech

FinTech remains one of the most dominant sectors in the MENA region, attracting significant investments throughout the quarter. Startups like Yuze Digital, Resal, TON, and MNT-Halan exemplify the growing demand for financial technology solutions in a region that is rapidly embracing digital transformation.

3. Challenges in Later-Stage Funding

While seed-stage and early-stage investments continue to thrive, startups in the Series A and later stages are facing difficulties in securing larger rounds of funding. This gap could present a challenge for MENA startups looking to scale, and addressing it will be crucial for sustaining long-term growth in the region.

4. Growth in E-Commerce and Logistics

With the rapid expansion of e-commerce in the MENA region, startups in the logistics and transportation sectors are gaining significant traction. SHIFT and Syarah are prime examples of companies that have leveraged the region’s growing e-commerce market to secure substantial funding.

To Conclude

Q3 2024 was a defining period for MENA startups, with over $1.11 billion raised across 143 startups. The region’s ability to attract substantial investments, particularly in FinTech, e-commerce, and logistics, demonstrates its growing importance on the global entrepreneurial stage.

However, the challenges faced by later-stage startups highlight the need for more growth capital as these companies scale. Looking ahead, the MENA region is well-positioned to continue its upward trajectory, with a vibrant ecosystem and strong investor interest propelling the next wave of innovation.

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Looking Ahead

The September 2024 MENA Funding Report by Rasmal paints a picture of a region that is experiencing a period of rapid growth and transformation. With 60 startups securing $328.3 million in funding, the ecosystem is proving to be dynamic and competitive.

While Saudi Arabia and the UAE continue to lead the charge in both the number of startups and the total funding raised, other countries are starting to emerge as promising players.

Key sectors such as FinTech, LogTech, and digital services are attracting the most investment, reflecting the region’s shift towards a technology-driven economy. At the same time, the disparity in gender funding highlights the need for greater inclusivity and diversity in the startup ecosystem, particularly in terms of supporting female entrepreneurs.

As the MENA region continues to evolve, the challenges it faces, including access to funding in smaller markets and gender inequality will need to be addressed to ensure sustainable growth. However, with increasing government support, growing investor interest, and the rise of innovative startups, the future looks bright for MENA’s entrepreneurial landscape.

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Important Notice: FDI Deal Clarification

We would like to bring to our readers’ attention an important clarification regarding the funding data presented in this report:

The $16.2 million investment raised by the Bahrain Economic Development Board from Polymatech Electronics, initially included in our calculations, is more accurately classified as a Foreign Direct Investment (FDI) deal rather than a traditional startup funding round.

While this investment reflects positively on Bahrain’s economic landscape and its ability to attract foreign capital, it differs in nature from the venture capital and angel investments typically covered in our startup funding reports.

We have chosen to maintain the original figures in this report for consistency, but readers should note that excluding this FDI deal would adjust the total funding amount and some country-specific statistics. We appreciate your understanding and remain committed to providing the most accurate and relevant information on the MENA startup ecosystem.

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Closing Remarks

Thank you for reading the MENA Startup Funding Report – September 2024, published by Rasmal Intelligence. We hope this report provides valuable insights into the region’s thriving startup ecosystem.

Disclaimer: The information provided in this report has been sourced from publicly available data and proprietary research conducted by Rasmal Intelligence, a division of Rasmal Inc. While we strive for accuracy and reliability, Rasmal Inc. does not guarantee the completeness, timeliness, or accuracy of the data presented. This report is for informational purposes only and should not be construed as financial or business advice.

Rasmal Inc. disclaims any liability for decisions made based on the contents of this report. The inclusion of any third-party trademarks, service marks, or logos does not imply an endorsement by Rasmal Inc.

For further inquiries or feedback, please contact us at editor@rasmal.com