International investor interest in the MENA startups is heating up: MENA startups have witnessed a surge in international investor activity in 9M 2024, with the region’s 28% y-o-y increase in unique investors positioning it as the fastest growing arena for international venture capital across Southeast Asia, Africa, and the Middle East during the first nine months of the year, according to Magnitt’s latest International Investor Evolution Report.

The broad strokes: The MENA region’s overall growth in investor activity was driven by a 60% y-o-y increase in international investors in the region’s startups — particularly those from the US and UK, the report writes. International venture capitalists also doubled their capital share in the region during 9M 2024 compared to the same period last year, reaching 37% of deployed capital. The growth was also driven by higher interest investing in early-stage startups, with series A transactions capturing 50% of international capital share in 9M 2024, up from just 15% in 9M 2023. Moreover, the MENA region has seen international venture capitalists’ share of participation rise from 28% in 2020 to 51% in 2024, according to a separate Magnitt press release (pdf).

Within the region, Egypt and the UAE led this investor influx: Egypt saw a 32% y-o-y increase in unique investors in 9M 2024, underpinned by a 79% y-o-y rise in local venture capitalists and significant contributions from the UK. The UAE also made significant strides in attracting international venture capital, with the report noting that the UAE saw a 24% y-o-y increase in unique investors during 9M 2024 — largely driven by a doubling of US-based participants.

Despite recent gains, the region continues to lag behind on aggregate: Recent progress notwithstanding, MENA startups continue to lag behind Southeast Asia and Africa in terms of total venture capital deployed, with the region registering USD 947 mn in deployed capital to Africa’s USD 1.2 bn and Southeast Asia’s USD 11.7 bn in 9M 2024.

MARKETS THIS MORNING-

Asian markets are kicking the day off in the green during early trading this morning, with Japan’s Nikkei up 0.5%, followed by Hong Kong’s Hang Seng and Korea’s Kospi both at 0.3%. Over in China, the Shanghai index is down 0.4%.

EGX30

30,864

-1.2% (YTD: +24.0%)

USD (CBE)

Buy 49.37

Sell 49.50

USD (CIB)

Buy 49.37

Sell 49.47

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,830

+0.2% (YTD: -1.1%)

ADX

9,387

-0.6% (YTD: -2.0%)

DFM

4,713

-0.6% (YTD: +16.1%)

S&P 500

5,894

+0.4% (YTD: +23.6%)

FTSE 100

8,109

+0.6% (YTD: +4.9%)

Euro Stoxx 50

4,790

-0.1% (YTD: +6.0%)

Brent crude

USD 73.30

+3.2%

Natural gas (Nymex)

USD 2.95

-0.9%

Gold

USD 2,616.50

+1.8%

BTC

USD 91,265.40

+2.4% (YTD: +115.8%)

THE CLOSING BELL-

The EGX30 fell 1.2% at yesterday’s close on turnover of EGP 3.5 bn (16.4% below the 90-day average). Local investors were the sole net sellers. The index is up 24.0% YTD.

In the green: Faisal Islamic Bank -EGP (+6.3%), Juhayna (+4.3%), and Cleopatra Hospitals (+1.0%).

In the red: Palm Hills Development (-4.0%), Oriental Weavers (-3.6%), and Emaar Misr (-3.3%).

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