MENA Startup Ecosystem Faces October Slowdown: UAE and Saudi Arabia Lead Amid Proptech Surge

In October 2024, the startup ecosystem across the Middle East and North Africa (MENA) region experienced a significant slowdown, raising just $134 million across 56 deals according to Wamda. This marked a 52% decline from the previous month and a 13% drop compared to the same month last year.

Debt financing made up $28.4 million of the total, with Ejari securing the largest debt-backed round at $14.65 million. The UAE emerged as the top-performing country, attracting $61.8 million from 15 deals. Saudi Arabia followed, with startups raising $50 million across 21 deals. Meanwhile, Kuwait clinched third place, thanks mainly to Sakan's $12 million proptech investment out of the country's total $13.5 million raised.

However, Egypt's startup landscape faced a tough month, with just eight ventures securing a mere $1.6 million. Tunisia and Qatar performed relatively better, raising $3 million and $2.7 million, respectively.

Fintech, previously dominant for four consecutive months, slipped to the second spot in October. Proptech took the lead with $38 million raised over five deals. Fintech followed with six startups garnering $26.4 million. E-commerce came next, attracting $14.6 million across four deals, while edtech secured $11 million through seven startups.

Investors remained inclined toward early-stage ventures, with seed rounds accounting for $40 million, making up 30% of the month's total investments. Series A rounds brought in $20 million over three deals. Notably, nine startups collectively raised $25.8 million without disclosing their funding stages, while 12 pre-seed companies attracted $15.5 million.

In terms of business models, consumer-focused (B2C) startups led the way, amassing $83.8 million from 19 companies. In contrast, 27 business-to-business (B2B) startups secured $42.4 million, while ten hybrid model startups garnered nearly $8 million.

Interestingly, October saw a positive shift in funding towards female-led startups, which raised $10.5 million across four deals. However, male-founded ventures continued to dominate, securing $115 million, with an additional $4 million going to startups co-founded by men and women.