Saudi Arabia Leads MENA Region in Startup Investments

(MENAFN) According to Wamda's monthly report, startups in the Middle East and North Africa (MENA) region raised USD247 million across 67 deals last month. Saudi Arabia was the top destination for startup investments, scooping up more than half of the total deal value in the region. The Kingdom raised USD175 million across 20 deals, with buy now, pay later fintech Tamara's USD150 million debt round representing 64 percent of the region's total funding raised last month.

The United Arab Emirates (UAE) came in second place with USD59 million across 18 deals, followed by Bahrain with USD6 million, Kuwait with USD4 million, and Morocco with USD1 million. Notably, Egypt saw a massive decline and did not make the top five countries for the first time in one year.

Although March funding saw a 67 percent decline month-on-month, it pushed the total funding raised in the first quarter of 2023 to surpass USD1.1 billion, marking a 17 percent increase quarter-on-quarter. Fintech remains the preferred sector for investors, attracting 73 percent of all activity last month with USD179.6 million. Foodtech and edtech followed with USD19 million and USD14 million, respectively.

Other sectors also received interesting attention last month, with traveltech grabbing USD9 million, web3 and blockchain USD3.5 million, and 3D printing and manufacturing attracting USD2 million in investments. The MENA region's startup ecosystem continues to grow and attract investment, with Saudi Arabia leading the way in securing funding for innovative new ventures.

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