Start-up investments in MENA surge by 260% to $355 million

Investment in start-ups across the Middle East and North Africa (MENA) surged in July with $355 million raised by 38 start-ups, reflecting a significant 206% increase month-on-month and over 260% year-on-year, according to Wamda’s latest monthly report.

Despite global economic challenges and heightened geopolitical tensions, particularly with the looming conflict between Israel and Iran, the MENA tech sector has shown remarkable resilience. The anticipation of a Federal Reserve rate cut in September has further fueled optimism, potentially revitalizing cash flow into global markets.

Debt financing accounted for less than 1% of July’s total investments, signaling a potential recovery from the investment slump earlier this year. Egypt emerged as a standout, leading the region with $185 million raised across seven deals, driven largely by a $157.5 million transaction by MNT-Halan. The UAE followed, securing $96 million across 12 start-ups. Meanwhile, Saudi Arabia saw a sharp decline, attracting only $31 million in investment.

Fintech continues to dominate, with $181 million funneled into 16 start-ups. The report also highlighted growing interest in Web3, deeptech, and cleantech sectors. Early-stage investments gained traction, while later-stage funding was notably absent.

The month also witnessed several key M&A activities, particularly in the UAE, including the acquisition of BitOasis by India’s CoinDCX.