FinTech tops MENA’s total funding of $328m in September 2024

By Gloria Methri

• Saudi Arabia led the region with $165.34 million in funding, emerging as a major startup hub.
• The UAE secured $114.32 million, particularly in the FinTech, eCommerce, and PropTech sectors.
• Late-stage startups dominated the investment scene, raising $129.08 million, while early-stage ventures also garnered attention, raising $57.30 million.
• A stark gender disparity persists, with male founders receiving 96.79% of the funding and female founders receiving just 3.21%.

The Middle East and North Africa (MENA) startup scene continues to thrive, with a total of $328.3 million raised across 60 startups in September 2024. According to the latest report by Rasmal, this impressive amount was secured from 36 different investors, signalling growing confidence in the region’s innovative ventures and entrepreneurial talent.

Saudi Arabia led the way, attracting $165.34 million in funding, accounting for more than half of the total capital raised across 13 startups in MENA. Saudi cities, particularly Riyadh and Jeddah, are emerging as key hubs for startups, benefiting from both government initiatives and private investment.

The report also highlighted the UAE as a major player in the region’s startup ecosystem, bringing in $114.32 million in total funding. FinTech, eCommerce, and property technology (PropTech) remain top sectors for investors in the UAE.

Dubai, known for its business-friendly policies and strategic global position, continues to attract investors. In September alone, 28 UAE-based startups secured funding, solidifying the country’s lead in terms of the number of funded ventures.

FinTech: A Driving Force

The Rasmal report provided a detailed breakdown of the industries that received the most funding, with FinTech emerging as a clear leader. In total, $134.84 million went into financial technology startups, reflecting the region’s rapid adoption of digital financial solutions and services. Logistics technology (LogTech) also attracted substantial interest as the eCommerce boom continues to drive demand for more efficient and tech-driven supply chain solutions.

While Saudi Arabia and the UAE grabbed the lion’s share of the investment, other countries in the region are also beginning to gain traction. Egypt secured $25.09 million, with a strong focus on tech and innovation, while Bahrain, Oman, and Morocco showed potential with smaller but growing investments. In contrast, countries like Iraq and Kuwait continue to face challenges in attracting significant venture capital, highlighting the uneven distribution of funds across the MENA region.

Late-Stage Startups See Major Gains

Investment in late-stage startups dominated in September, with these more established companies securing $129.08 million of the total. This trend reflects a growing investor preference for ventures that have already demonstrated strong market performance and scalability. While these mature companies grabbed the spotlight, early-stage startups were still an essential part of the ecosystem, with seed-stage ventures raising $57.30 million across 33 deals.

Gender Disparity in Funding

Despite the encouraging overall growth, the report also shed light on a persistent issue: the gender disparity in startup funding. Male founders secured 96.79% of the total funds raised in September, while female founders received just 3.21%. This stark contrast underscores the need for more inclusive investment practices in the region, with increased support for female-led startups being crucial for a more balanced and diverse entrepreneurial landscape.

Key Success Stories

Some of the standout startups that received funding in September include SHIFT, a logistics and transport technology company that raised a whopping $83 million, marking the largest single investment of the month. Other notable startups include Syarah, an online marketplace for car sales, which attracted $40 million, and TON, a FinTech firm that secured $30 million in investment.

The MENA region’s startup ecosystem is poised for continued growth, showcasing strong investor interest in key markets like Saudi Arabia and the UAE. FinTech and LogTech remain desirable sectors, while other industries are starting to catch up. However, challenges such as the gender funding gap and underdeveloped markets in countries like Iraq and Kuwait still need to be addressed.

As more investors, entrepreneurs, and governments come together to foster innovation and growth, the future looks promising for startups across MENA. Altogether, the September 2024 funding data reinforces the MENA region’s status as a growing hotspot for startups and investment. With $328.3 million raised, the ecosystem continues to thrive, offering significant opportunities for both entrepreneurs and investors alike.