NORTH AFRICA | Fintech Dominated Investments in the MENA Region in 2024, Web3 Took Second Spot

From a country point of view, Egypt took third place, attracting $334 million in investments across 84 startups.

kodzilla··3 min read

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.

Despite this drop in investment value, 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.


The 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.

  • In Egypt and the UAE, fintech emerged as the top-funded sector, while
  • In Saudi Arabia, software-as-a-service (SaaS) attracted the largest share of investments
  • Web3, which dominated investments in December 2024, emerged second in the yearly results

  • Startups providing Web 3-focused services secured the second spot, with $256.8 million stretched across 23 transactions, closely followed by e-commerce startups, which raised $253 million by 58 startups.
  • SaaS ranked second in deal volume after fintech, with 65 providers securing $228.6 million in funding.
  • In contrast, the foodtech sector faced a significant downturn, raising only $77 million across 18 deals – a sharp decline from the $224 million secured by 47 startups in 2023.

From a country point of view:

  • Saudi Arabia lost its leading position last year, securing $700 million across 186 deals, while
  • The UAE took the top spot with 207 startups receiving nearly half of the region’s total funding in 2024 ($1.1 billion).
  • Egypt followed in third place, attracting $334 million in investments across 84 startups.


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

  • Oman making a big jump from 10th place in 2023 to 4th in 2024, securing $41.5 million across 12 startups
  • Bahrain followed with $29 million raised through 12 deals, while
  • Kuwait’s ecosystem attracted $22 million across eight startups

In North Africa:

  • Egypt dominated by securing $334 million
  • Morocco secured $20.8 million
  • Tunisia secured $13.1 million

 

Meanwhile, Jordanian startups demonstrated resilience, raising $15 million across 26 deals – an increase from $9 million in 2023.

Smaller ecosystems, including Qatar, 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.

 

  • Early-stage startups attracted the majority of investments in 2024, raising over $1.2 billion across 300 companies from pre-seed to Series A
  • In contrast, later-stage funding, including Series B and Series C, totaled $332 million across 10 deals
  • Meanwhile, only two startups secured pre-IPO funding, amounting to $143.3 million

 

 

 

Follow us on X for latest posts and updates

Join and interact with our Telegram community

_______________________________________

 

_______________________________________

Related
All Rights Reserved - BitcoinKe.io
2020 © Zeen World News