Saudi Arabia and the UAE emerged as leaders in MENA’s startup funding landscape in September 2024, as reported by Rasmal research.
The region witnessed a substantial $328.3 million investment across 60 startups, highlighting a burgeoning interest in innovative ventures.
Saudi Arabia attracted the lion’s share with $165.34 million, underscoring its commitment to diversify its economy under Vision 2030. The Kingdom’s cities, Riyadh and Jeddah, are becoming vibrant startup hubs, thanks to both government and private sector support.
The UAE followed closely, securing $114.32 million in funding. Dubai’s strategic location and business-friendly environment continue to appeal to investors. Notably, 28 UAE-based startups received funding, with fintech, e-commerce, and proptech leading the sectors of interest.
The funding breakdown per country was as follows:
- Saudi Arabia: $165.34 million
- United Arab Emirates (UAE): $114.32 million
- Egypt: $25.09 million
- Bahrain: $16.20 million
- Oman: $3.31 million
- Morocco: $2.97 million
- Kuwait: $1.00 million
- Iraq: $0.13 million
Looking at the city distribution, Dubai maintained its leading position as the most attractive city for startups in the region, with 25 startups in September 2024. Riyadh comes in second with 9 startups, followed by Cairo, with 6 startups. Cities like Jeddah, Abu Dhabi, and Muscat also showcased growth.
Fintech leads the way
The fintech sector was reported as the industry that received the majority of startup funding, with 20 companies raising a combinted $134.84 million during the month, reflecting strong growth in financial technology.
Logistics firms also received increased attention from investors, with companies like SHIFT, a logistics tech firm, raising $83 million—the largest single investment of the month. Meanwhile, Syarah and TON attracted significant attention in their respective domains.
Software development, with 7 startups, and healthcare, with 4 startups, were two sectors that also demonstrated significant activity during the month of September .
The top five startups alone secured a combined total of over $197 million, distributed as follows:
- SHIFT: $83 million
- Syarah: $40 million
- TON: $30 million
- PayMob: $22 million
- Ziina: $22 million
Despite these successes, the report also stressed the continued gender disparity, with male founders receiving 96.79% of funds, leaving only 3.21% for female-led startups. This gap highlights the need for more inclusive investment practices.
As the report showed, the region is poised for sustained growth in the global startup arena.
