Venture capital investments in the Middle East and North Africa (MENA) surged to $355 million in July, marking a 206 percent increase from June and a 260 percent rise year-over-year, according to recent data.
This notable growth underscores the region’s resilience amid global economic uncertainties and escalating geopolitical tensions, including potential conflicts involving Israel and Iran. Despite these challenges, the number of deals remained stable at 38, reflecting a robust investment climate, as reported by Wamda.
The anticipation of a potential interest rate cut by the US Federal Reserve in September may be contributing to renewed market optimism, potentially improving liquidity and attractiveness for investors.
In July, startup debt financing accounted for less than 1 percent of total investments, signaling a shift toward venture capital as the primary funding source and a rebound from previous investment declines.
Egypt emerged as a major recipient of venture capital, attracting $185 million through seven deals, a significant rise from $15 million in June across four deals. This increase was largely due to a $157.5 million investment in fintech startup MNT-Halan. The UAE followed with $96 million invested in 12 startups, while Saudi Arabia experienced a decline to $31 million from seven deals, trailing behind Oman, where startup 44.01 raised $37 million.
Fintech continued to dominate, drawing $181 million across 16 startups. Web 3.0 providers received $85 million for two startups, and the deeptech and cleantech sectors also saw considerable investments, notably in 44.01 and Intelmatix.
E-commerce maintained competitive deal volume with six startups raising $15.7 million. Early-stage investments led the funding landscape, with seed-stage startups attracting $96 million and Series A rounds garnering $91.7 million. Pre-seed investments were relatively modest at $1.8 million.
Business-to-business models captured the majority of funding, totaling $345 million across 27 startups, while business-to-consumer startups secured nearly $8 million.
Female-led startups faced challenges, raising only $270,000 in July, compared to $20.5 million for mixed-gender co-founded startups. Male-led startups received the majority of the funding.
July also saw several notable mergers and acquisitions, particularly in the UAE, including Bit Oasis’s acquisition by CoinDCX, Power League Gaming’s purchase by Muller & Phipps Middle East Group, and Lableb’s acquisition of Majarra.
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