The Middle East and North Africa (MENA) region experienced a record-breaking month for startup funding in September 2024, with Saudi Arabia and the UAE leading the charge.
Saudi Arabia and the UAE led the MENA region in startup funding, raising $328 million in September, reflecting the growing investor confidence in the region’s entrepreneurial ecosystem. For entrepreneurs looking to tap into this thriving market, seeking guidance on new business setup in Dubai can provide valuable insights into the city’s opportunities and regulatory landscape.
According to Rasmal’s latest report, the two countries collectively raised an impressive $328.3 million, spread across 60 startups. This development showcases the region’s growing entrepreneurial ecosystem, with key sectors such as FinTech, eCommerce, and PropTech capturing most of the investment.
Saudi Arabia Tops the Chart in MENA Startup Funding
Saudi Arabia emerged as the frontrunner, securing $165.34 million across 13 startups, accounting for more than half of the region’s total funding. With initiatives like Vision 2030 fostering a favorable environment for innovation, cities like Riyadh and Jeddah are becoming vibrant startup hubs.
The government’s focus on diversifying the economy away from oil and increased private sector investment has further boosted Saudi startup investments, positioning the kingdom as a leader in MENA’s venture capital scene.
UAE Venture Capital Strengthens Ecosystem
The UAE followed closely behind, attracting $114.32 million in funding. Dubai’s strong position as a global business hub and Abu Dhabi’s push for technological innovation have made the UAE an attractive destination for investors. In particular, FinTech, eCommerce, and PropTech startups continue to gain traction, with late-stage ventures receiving a notable $129.08 million in September.
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Gender Disparity in MENA Startups
Despite the positive trends, the report highlighted a persistent gender disparity in MENA’s startup funding, with male founders receiving a staggering 96.79% of the investments, leaving female founders with only 3.21%.
Addressing this gap remains crucial for the region’s long-term growth and inclusivity in the startup landscape.
