UAE startups led the region in secured funding rounds with a total of 134 in the first nine months of 2024, according to Magnitt's venture investment summary report (pdf). This accounted for 38% of all funding rounds in the Mena region, and marked a 12% y-o-y increase.

The UAE came in second in the Mena region and fourth across emerging markets in terms of value of funding, with USD 380 mn in funding during the period, down 18% y-o-y.

UAE-based venture capital firm PlusVC emerged as the region’s fourth largest investor in terms of the number of startups it provided funding for.

THE REGIONAL PICTURE-

Mena's venture capital market raised USD 1.32 bn, reflecting a 13% decline from the previous year. Despite this downturn, non-megadeal funding increased by 30% y-o-y, indicating sustained support for early-stage ventures. The region recorded a total of 352 investments, marking a slight 6% drop year-over-year, which outperformed other emerging markets like Africa and Southeast Asia, which saw declines of 42% and 28%, respectively. Emerging venture markets — including ones outside the region — witnessed a 45% y-o-y dip in funding, raising USD 4.9 bn in the first nine months of 2024.

The number of investors in Mena rose by 34% to 386, with international investors leading the charge, accounting for 51% of all investors in the region for the first time in over five years. Exits declined by 50% with 17 recorded exits across the region.

Fintech remained dominant, securing approximately USD 480 mn in investments and capturing 37% of total funding in Mena. E-commerce and retail experienced declines in funding, while there was renewed interest in enterprise software as well as transport and logistics.

Could 2024 end on a high note? “With global trends pointing towards lower interest rates and an uptick in investment activity, Q4 2024 will be a crucial period. All eyes are on whether we can exceed last year’s performance,” said Magnitt CEO Philip Bahoshy.

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