Scale-up capital lacking in the region: Despite a solid 1Q for venture activity, the Middle East’s startup ecosystem is grappling with a late-stage capital gap, especially at Series B and beyond, Bloomberg reports, citing data from Magnitt. While sovereign-backed funds like Mubadala Ventures and Dubai Future District Fund support early-stage funding rounds, regional late-stage funding remains thin compared to global markets — with rare exceptions like Tabby, which raised USD 160 mn in a Series E round in February, more than doubling its valuation.

Companies are looking abroad: Property Finder, one of Dubai’s most established startups, had to secure its Series B from Sweden’s VNV Global and later raised a USD 90 mn debt round led by US-based Francisco Partners.

IPO pipeline under pressure: “When UAE-founded companies raise abroad, we risk losing not just the funding, but the IP, the jobs, and the eventual listings,” said Emirates Growth Fund Vice Chair and MD Najla Al Midfa, who also stressed the need for local funding for scale-stage firms. Just 6.5% of funded startups in the region have gone public in the last decade, raising concerns over the region’s long-term exit track.

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