The UAE maintained its position as the best-funded startup ecosystem in the MENA region in November 2024, securing $146 million across 11 deals. This was largely driven by significant funding rounds for UAE-based startups eyewa and Lean Technologies, which raised $100 million and $67.5 million, respectively. Saudi Arabia followed closely, with startups in the kingdom raising $94 million across 23 deals.
Egypt ranked third, with eight startups raising nearly $16 million, a notable increase from the $1.6 million raised the previous month. This growth is particularly significant given the ongoing geopolitical tensions and the persistent decline of the Egyptian pound. Overall, tech startups in the MENA region demonstrated strong momentum in November, securing a total of $258 million through 46 deals.
This represents a 92% increase compared to the previous month, although it is a 196% decrease from the $764 million raised in November of the previous year. However, when excluding debt financing from the previous year’s total, the disparity narrows to 32%. In terms of sector performance, e-commerce emerged as the leader, largely due to eyewa’s substantial deal.
UAE leads MENA startup funding
Seven e-commerce startups attracted a total of $104 million in funding. This pushed fintech, which had been the top sector for four consecutive months, to second place, with four startups raising $80 million.
Software-as-a-service (SaaS) providers also showed strong performance, attracting $21 million across seven funding rounds. Later-stage investments had a notable presence in November, with eyewa’s Series C round, Lean Technologies’ Series B, and Cipher’s $13.3 million pre-IPO funding. Series A startups secured $23 million through two deals, while pre-seed startups led in terms of the number of deals, attracting around $5 million across 16 transactions.
Business-to-business (B2B) models continued to gain favor, receiving 48% of the overall investment. In contrast, business-to-consumer (B2C) startups received $11.5 million, with the remainder going to hybrid startups operating in both domains. The month also highlighted a gender disparity in investment, with male-led startups attracting 90% of the overall funding.
Female-led startups garnered only $583,000, while startups co-founded by both male and female entrepreneurs secured $22.5 million. These trends reflect the dynamic and rapidly evolving startup ecosystem in the MENA region as 2024 draws to a close, with the UAE, Saudi Arabia, and Egypt leading the way in terms of funding and deal volume.
MENA Startups Shift Focus
The MENA region’s startup ecosystem is not just growing in numbers but also evolving in its strategic focus. The rise in SaaS and B2B investments signals a shift toward efficiency and long-term value creation. Investors are increasingly backing startups that offer scalable, tech-driven solutions, particularly in sectors like logistics, healthcare, and AI. This pivot indicates a maturing market that prioritizes sustainable growth over rapid, short-term gains. As innovation accelerates, the region is likely to attract more global attention, solidifying its position as a hub for forward-thinking entrepreneurship.
