Emirati startups were the second most funded across the MENA region in September, with 28 startups raising USD 114.3 mn, according to Rasmal’s latest Mena Startup Funding Report. This is a 48% m-o-m increase from August’s USD 76.9 mn. KSA came in first position with USD 165.3 mn raised across 13 startups, with Egypt in third place at USD 25 mn across eight startups.

Dubai led the pack with the most investments in startups in a city, with 25 startups raising a combined USD 107.3 mn. The emirate is a “magnet” for founders on the back of the government’s initiatives, global investor access, and the emirate’s “robust innovation ecosystem,” the report said. Meanwhile, Abu Dhabi startups were the fifth most funded, with three startups securing USD 23 mn during the month.

REGIONAL SNAPSHOT-

Some 60 MENA startups raised a combined USD 328.3 mn in September, down from USD 566 mn in August. In 3Q 2024, 143 startups raised USD 1.1 bn.

Late-stage startups were the most popular in September: The lion’s share of investments in September — amounting to USD 129.1 mn — was in the form of VC funding to growth-stage startups. Meanwhile, seed-stage funding declined 17% m-o-m to USD 57.3 mn, and Series A saw c. 3x surge to USD 54.7 mn.

The three most attractive sectors: Fintech startups secured USD 134.8 mn in September, up from USD 47.2 mn in August. This was followed by the logistics sector at USD 83 mn, and the software development sector with USD 52.6 mn.

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