The UAE saw the biggest volume of startup investments in the MENA region in 1H 2024, according to the latest report (pdf) by Dubai-based financial analysis firm Magnitt. UAE-based startup investments climbed 11% y-o-y to 83 closed transactions during the period, with startups landing some USD 225 mn in total funds, marking a 19% y-o-y decline in terms of value.

This makes the UAE the fifth highest country among emerging markets in terms of value of investments in the region, with Saudi Arabia leading the pack with USD 412 mn in funding for startups. The UAE is second to KSA in the MENA region.

Wamda has a different take, counting 91 UAE-based startups drawing in USD 455 mn in funding during the first half of the year. Despite investments plunging 24% y-o-y from the USD 604 mn raised during the same period in 2023, the UAE still emerged as the “top funded ecosystem in the region.” Our internal tracker puts the figure closer to Magnitt’s, though it doesn’t count some undisclosed rounds raised during the period.

The UAE had the lion’s share of exits, accounting for six exits of a total of 10 taking place across the region over the six-month period, according to Magnitt.

UAE-based VCs came in second after Saudi firms for number of investments, with 41 transactions closed, according to Wamda. UAE-based VC Plus Venture Capital ranked as the top fourth investor across emerging markets, with 10 transactions closed during 1H 2024, Magnitt said.

THE REGIONAL PICTURE-

VC funding slowed 34% y-o-y to USD 768 mn across the region, along with an 18% y-o-y decline in transaction volumes to 199 transactions. On the bright side, the MENA startup investor pool grew 32% y-o-y to 262, signaling “sustained interest in the region.”

Fintech startups accounted for 38% of investments in startups in emerging markets, securing over USD 1 bn in funding across 128 transactions, making the fintech industry the leading sector in terms of funding.

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