The startup ecosystem in the Middle East and North Africa (MENA) region demonstrated notable resilience in 2024, despite a 42% year-on-year decline in overall funding, according to the latest report from Wamda. MENA startups secured $2.3 billion in investments, with the UAE leading the way, raising $1.1 billion across 207 startups. The region also saw an increase in deal volumes and sectoral diversity, highlighting the maturing nature of the ecosystem.

Key Facts

• Despite a significant drop in total funding, deal volumes rose by 3.5%, with 610 deals closed in 2024.
• Saudi Arabia followed the UAE, raising $700 million across 186 deals, while Egypt secured $334 million in 84 deals.
• Oman made a notable leap, climbing from 10th place in 2023 to 4th in 2024 with $41.5 million raised.
• GCC countries led the funding with Oman, Bahrain, and Kuwait securing investments in smaller yet growing startup ecosystems.

GCC Leads The Way

The Gulf Cooperation Council (GCC) countries emerged as the highest-funded in the region. Oman saw significant growth, while Bahrain and Kuwait secured $29 million and $22 million, respectively. Smaller ecosystems like Jordan, Qatar, and Lebanon also showed promising development, with Jordan raising $15 million, marking a notable increase from $9 million in 2023.

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Sectoral Insights In The UAE

In the UAE, three sectors dominated funding: fintech, Web 3.0, and proptech. Fintech led with $265 million raised across 47 transactions, followed closely by Web 3.0 startups with $255 million raised in 19 deals. Proptech attracted $197 million across 13 transactions. The UAE’s growing interest in these sectors aligns with the country’s global appeal, diverse population, and wealth.

Fintech Dominates Regionally

Fintech remained the most funded sector in MENA, securing 30% of the total investment, amounting to $700 million. In Egypt and the UAE, fintech led the charge, while in Saudi Arabia, software-as-a-service (SaaS) startups attracted the most attention. Web 3.0 and e-commerce startups followed closely, with $256.8 million and $253 million raised, respectively.

Early-Stage Startups Lead Investments

Early-stage startups dominated investments in 2024, attracting over $1.2 billion across 300 startups from pre-seed to Series A stages. Later-stage startups saw $332 million in funding across 10 deals, while only two startups secured pre-IPO funding, raising $143.3 million.

Investor Shifts To B2B Model

A significant shift in investor appetite was observed, with a preference for B2B models. B2B startups raised $1.2 billion across 325 companies, while B2C startups secured $717 million. Startups operating in both B2B and B2C models, as well as direct-to-consumer (D2C) startups, received the remaining investments.

Challenges And Opportunities

The MENA region’s startup ecosystem faces challenges, particularly with the decline in funding for foodtech and the underrepresentation of female-founded startups, which raised just $27.6 million, although this marked an improvement from 2023. However, the growing diversity in sectors and investor interest in B2B models present opportunities for continued growth.

Apple, the world’s most valuable company, released its latest financial results on Thursday, revealing record revenue and profit, but also a dip in iPhone sales and disappointing figures from its key market, China.

Key Details

Apple reported a record $124.3 billion in revenue for the last three months of 2024, slightly surpassing Wall Street’s forecast of $124.26 billion, according to FactSet. Earnings per share hit $2.41, outperforming analysts’ estimates of $2.35, and surpassing the record set in Q4 2023. Despite these strong overall results, iPhone sales came in at $69.1 billion, falling short of the anticipated $70.7 billion, and marking a decline compared to the same period last year. This occurred even with the launch of the new iPhone 16 featuring integrated AI capabilities.

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Sales in China were another disappointment, totaling $18.5 billion, well below the forecasted $20.9 billion, reflecting an 11% drop from the previous year.

Despite these challenges, Apple saw a 4% year-on-year revenue growth and a 10% increase in net income, largely driven by its high-margin services division. This segment, which includes the App Store, AppleCare, and Apple Music, generated a record $26.3 billion in revenue, up 14% from the previous year.

Ahead of the earnings release, Apple’s shares fell 0.7%, and continued to dip slightly after the results were published. However, the stock remains up over 5% for the week. Apple also benefitted unexpectedly from the market volatility triggered by the launch of DeepSeek’s new AI language model.

Notable Quote

“In the markets where we launched Apple Intelligence, performance has outperformed those where we didn’t,” Apple CEO Tim Cook stated during the earnings call. He described the success in AI markets as a “positive indicator” for future iPhone sales. Cook also highlighted that Apple’s AI-enabled operating systems are expanding in key markets like China and India, fueling optimism for future growth. Following his comments, Apple’s shares rose 3% in after-hours trading.

Context

Apple’s results were released just a day after three other major US tech companies—Microsoft, Meta, and Tesla—revealed their earnings, sparking mixed reactions from investors. Microsoft shares dropped 6% after missing expectations for its Azure cloud business, marking its biggest daily fall since 2022. Meanwhile, Meta and Tesla shares rose about 2% after Meta exceeded revenue and profit forecasts, and Tesla outlined promising plans for future models despite missing analysts’ expectations.

Challenges Ahead

The mixed results stem from concerns highlighted by JPMorgan analysts, led by Samik Chatterjee. The analysts identified three key challenges impacting Apple: declining iPhone market share in China, slow adoption of AI features in iPhones, and currency risks tied to a stronger US dollar, which increases the cost of Apple products abroad. China, which accounts for 17% of Apple’s revenue in fiscal 2024, continues to be a pivotal market for the tech giant.

OpenAI, the pioneering artificial intelligence startup, is reportedly exploring a new funding round that could push its valuation to an impressive $340 billion, more than double its current worth. This comes amidst growing competition from the emerging Chinese AI company DeepSeek, according to The Wall Street Journal.

Key Details

According to the Journal, OpenAI is in the early stages of raising $40 billion in this upcoming round. Sources close to the matter, speaking anonymously, caution that discussions are still ongoing and the deal could fall apart at any moment.

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This potential funding round would bring OpenAI’s value to $340 billion, a substantial leap from its latest $157 billion valuation, which followed a successful $6.6 billion raise in October.

In previous reports, the Journal revealed that Japanese investment giant SoftBank is expected to take the lead in this funding round, contributing somewhere between $15 billion and $25 billion.

OpenAI hasn’t yet to comment on the matter.

How OpenAI’s Valuation Stacks Up Against Its Rivals 

While OpenAI’s valuation has reached $157 billion as of October, Elon Musk’s xAI is valued at around $50 billion. In comparison, Amazon-backed AI startup Anthropic is valued at $18 billion and is said to be in discussions for a funding round that could bring its valuation up to $60 billion. Meanwhile, DeepSeek, the Chinese AI firm, is estimated to be worth at least $1 billion, though some analysts believe it could be valued much higher, even without generating significant revenue yet.

Although not solely AI-focused, tech giants Microsoft and Meta have allocated $80 billion and $65 billion, respectively, towards AI for the current fiscal year, according to Reuters.

The Bigger Picture 

OpenAI holds the title of the highest-valued U.S. AI startup and has seen its value soar more than fourfold from 2023 to 2024. The nonprofit company reported a monthly revenue of $300 million as of August, with projected annual sales of $3.7 billion for 2024, as per The New York Times. OpenAI is also at the helm of Project Stargate, a large-scale AI infrastructure initiative that includes partnerships with Oracle and Nvidia. This project aims to build multiple AI data centers across the U.S. and create hundreds of thousands of American jobs.

However, the massive funding behind OpenAI and other U.S.-based AI companies has come under scrutiny in recent days, especially with the rise of DeepSeek. The Chinese startup has claimed that it developed one of its AI models for a fraction of the cost compared to its American counterparts, spending just $5.6 million on GPUs for training. Despite these claims, industry experts like Bernstein analyst Stacy Rasgon have expressed doubts, suggesting that the figure doesn’t account for other significant costs involved in model development.

On January 31, 2020, the United Kingdom officially left the European Union, marking the end of nearly five decades of membership that had ensured free movement and trade with 27 other European nations. For Brexit supporters, this was a triumph, with the UK regaining control over its borders, laws, and economy. For its opponents, it represented isolation and a decline in global stature. Five years later, the UK is still grappling with the economic, social, and cultural ramifications of the decision.

Economic Consequences And Adjustments

Political scientist Anand Menon, director of the think tank Britain in a Changing Europe, describes the impact of Brexit as “profound” and believes that it has reshaped the UK’s economy. The years of deindustrialization cuts to public spending, and high immigration had created fertile ground for the argument that the UK needed to “take back control.” Despite the 52%-48% result of the 2016 referendum, the aftermath has been complicated.

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After years of disagreements on how to navigate the separation, including the resignation of Prime Minister Theresa May, Boris Johnson promised to “get Brexit done,” leading to an agreement on Christmas Eve 2020. But this political departure has come at a high cost. Brexit has disrupted trade and supply chains, creating new economic barriers with the EU, which accounted for half of the UK’s trade.

In the wake of the pandemic and Russia’s invasion of Ukraine, the economic landscape has become even more unpredictable, making it difficult to isolate the full impact of Brexit from other global events. Nonetheless, there are clear signs that the UK’s economy has faced challenges, especially in trade and labor.

The Immigration Paradox

One of the key promises of Brexit was to reduce immigration, but the reality has been the opposite. Despite the end of free movement from EU countries, immigration to the UK has increased, with the government issuing more work visas to non-EU nationals than before Brexit. The rise of immigration has placed additional strain on the country’s services and housing, contributing to the sense of disillusionment for those who supported the exit as a means to curb migration.

Shifting International Dynamics

The UK’s position on the world stage has also changed since Brexit. The country now finds itself caught between Europe and its so-called “special relationship” with the United States. As populist movements rise globally, including the return of Donald Trump to power in the US, the UK faces a more uncertain future, with the international landscape less forgiving than it was in 2016. According to Menon, “The world is much less forgiving now than it was in 2016.”

Public Sentiment And The Future Of EU Relations

Polls show that public opinion on Brexit has soured over the years, with many now viewing it as a mistake. However, rejoining the EU seems unlikely, as the wounds of separation remain fresh. Prime Minister Keir Starmer, elected in 2024, has expressed a desire to “reboot” relations with the EU but has ruled out rejoining the single market or customs union. Instead, he aims for modest changes, such as facilitating artist touring and recognizing professional qualifications, alongside enhanced cooperation on law enforcement and security.

The EU has responded positively to Starmer’s approach, recognizing the shift in tone from previous UK leadership. However, with rising populism and internal challenges, the EU’s priorities have shifted, and the UK is no longer at the top of the agenda.

Five years after Brexit, the UK’s future remains uncertain. While some of the initial promises of sovereignty have materialized, the economic, social, and political challenges stemming from the decision are far from resolved. The country’s strained relationship with Europe and the changing dynamics on the global stage suggest that the full consequences of Brexit may continue to unfold for years to come.

DeepSeek, a Chinese AI firm founded by Liang Wenfeng, has seen an astonishing rise in value, positioning itself as a formidable competitor to industry giants like OpenAI and Anthropic. The firm’s open-source AI model, which launched in January 2025, quickly gained traction, becoming the top-rated app in the United States within weeks. This unprecedented success has catapulted Liang into the ranks of the world’s wealthiest individuals, with a projected valuation for DeepSeek reaching at least $1 billion.

The company, which launched in 2023, operates without external investors, with Liang owning 84% of the firm. DeepSeek’s success is attributed to its efficient AI models, which have been developed at a fraction of the cost of competitors. Despite not yet generating significant revenue, the firm’s market share is expanding rapidly, and its ability to challenge established players in the AI field positions it for future growth.

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Experts believe DeepSeek’s potential is vast, and some estimate its worth to be as high as $10 billion. The firm’s success has already wiped billions off the fortunes of competitors, particularly in the U.S., and it continues to gain momentum. While the future remains uncertain, the combination of DeepSeek’s innovative technology, its leader’s vision, and growing global attention makes it a company to watch.

Liang Wenfeng’s journey from hedge fund founder to AI entrepreneur is a testament to his strategic foresight and ambition. With a background in AI and quantitative trading, he has proven his ability to navigate complex industries and build high-value firms. As DeepSeek looks to capitalize on its success, Liang’s story is one of remarkable transformation, turning an obscure AI startup into a global contender.

With DeepSeek’s impressive trajectory, the tech world will be closely watching its next moves as it continues to disrupt the AI industry and secure its place among the most valuable companies in the sector.

The clean energy sector is facing unexpected disruptions in its push towards decarbonization. From AI advancements to weight-loss drugs like Ozempic, several new factors are complicating the outlook on global energy demand, and experts, like Nat Bullard, are sounding the alarm. Bullard’s annual presentation on green transition trends highlights these challenges, showing how emerging technologies and healthcare developments are throwing new layers of uncertainty into decarbonization predictions.

Bullard, a co-founder of energy platform Halcyon and a former BloombergNEF chief, uses his presentation to explore shifts in global energy dynamics. While 2024 may be a record-breaking year for renewable energy installations, Bullard points out that fossil fuel consumption is rising, with CO2 emissions higher than ever. “We’re burning more fossil fuels while deploying more wind, solar, and battery power than we ever have before,” he explains. “It’s a paradox.”

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Here’s a breakdown of some key points from Bullard’s report:

Data Isn’t the Whole Picture 

Electricity demand is projected to grow significantly over the next few years, but a smaller portion of that is likely to fuel AI-driven energy consumption. The International Energy Agency’s recent report suggests that data centers are not the primary driver of the surge in electricity demand from 2023 to 2030.

AI’s Expanding Role 

The electricity demand isn’t solely driven by data centers; however, their impact on energy consumption is undeniable. For instance, the US and Europe are seeing data centers consume more electricity than ever, with Virginia and Ireland being prime examples. Bullard notes, however, that DeepSeek, a Chinese AI startup, has introduced open-source models that require far less energy to train, which could significantly reduce the industry’s demand for power in the long run.

Regulatory Measures And Economic Cycles 

Bullard points out that infrastructure for AI and data centers is often built in cycles of boom and bust. He suggests that regulatory controls could incentivize more sustainable growth patterns in this sector, and DeepSeek’s innovations could pave the way for a slowdown in the rapid expansion of data center infrastructure.

How New Drugs Are Affecting Oil Demand 

Surprisingly, drugs like Ozempic are influencing more than just weight loss—they are changing eating habits and could ultimately reduce oil demand. Bullard highlights studies showing that users of these drugs are consuming less junk food, fats, and meats, which could lead to a decrease in demand for agricultural products like corn and soy. This could have downstream effects on biofuels and bioplastics, further lowering oil demand.

The Shift In The EV Market 

China’s burgeoning electric vehicle (EV) industry is shaking up global markets. With manufacturers like BYD and Geely leading the charge, EVs are becoming more affordable, and now almost two-thirds of China’s EVs are cheaper than their internal combustion engine counterparts. This shift, paired with falling lithium-ion battery prices, is creating a ripple effect in the global auto market. Battery demand is increasing rapidly, but excess production could lead to a surplus that may challenge established trade flows, such as the export of used EVs to regions like West Africa.

Green Finance Faces Setbacks 

While green finance continues to grow, Bullard points out a troubling trend in the US: a decline in public commitments from major investment firms, like BlackRock, to support environmental sustainability. Bullard highlights a shift in language in BlackRock CEO Larry Fink’s annual letters, noting a retreat from ESG-related topics in response to political pressure, particularly from states like Texas. Despite this, energy transition infrastructure funds now total nearly $1 trillion, signaling that green finance is still moving forward, albeit slowly.

As Bullard’s presentation makes clear, the path to a sustainable future is increasingly tangled with unexpected factors, from AI breakthroughs to changing consumer behavior. While the push for decarbonization remains critical, the future is likely to be shaped by new dynamics that can’t be predicted by traditional forecasts alone.

Foreign buyers are sweeping up land across Cyprus, sidestepping local regulations, and pushing property prices to unprecedented levels. Meanwhile, this trend is creating a housing crisis for residents, particularly young couples who are struggling to find affordable homes.

While legislation does exist, including restrictions on foreign ownership, it appears to be easily bypassed. Sources close to the matter suggest that foreigners are increasingly purchasing property via legal entities, such as companies, which allows them to sidestep the scrutiny intended by the law.

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The issue has been a topic of public debate for some time, but now it’s taking center stage in a more focused manner, thanks to a new parliamentary push. Today, the parliamentary Interior Committee will discuss a bill introduced by Nikos Georgiou, the DISY MP for Famagusta.

Representatives from the Ministry of Interior, the Department of Land and Surveys, the Ministry of Finance, the Legal Service of the Republic, and the Registrar of Companies and Intellectual Property have all been invited to share their views. They will be tasked with shedding light on the growing issue of foreign buyers bypassing the law by acquiring property through companies and trusts.

Tightening The Legal Framework

Georgiou’s proposed bill aims to modernize Cyprus’ property acquisition laws for foreigners, ensuring more transparency and tightening controls. According to the explanatory memorandum, the aim is to protect public interests by improving the monitoring process, enforcing stricter due diligence, and ensuring professionals like lawyers and accountants adhere to stringent ‘Know Your Client’ (KYC) guidelines.

The proposed law would essentially embed these professionals into the process, ensuring they verify the identity of foreign buyers before any property transactions can go through. This move mimics anti-money laundering practices and aims to close the loopholes that allow foreigners to bypass local controls by using legal entities.

Loopholes For Companies

As citizens and officials raise concerns, the current law (Article 3) already imposes restrictions on foreign individuals purchasing real estate, which requires prior approval from the Council of Ministers. The legislation also sets clear boundaries for the area of land a foreigner can acquire, ensuring it remains within manageable limits for residential or business purposes.

However, as pointed out by Nikos Georgiou in a parliamentary question last summer, there is growing evidence that foreigners are exploiting these laws by buying property through companies. This raises the question: why should restrictions exist for individuals if they can easily circumvent the law through corporate structures?

As legal expert George Koukounis pointed out years ago, any foreigner can establish a Cypriot company to purchase property without facing the same constraints. The problem lies in why natural persons face limitations when they can bypass these through a company.

European Perspective On Foreign Property Ownership

While Cyprus isn’t the only country facing these issues, it does stand out. Across Europe, many countries have taken steps to address similar concerns.

In Finland, a recent report called for stricter legislation to prevent foreigners from acquiring property, especially from countries whose actions threaten national security. In the UK, transparency rules and anti-money laundering measures are in place, ensuring more thorough checks on foreign buyers. Meanwhile, in Greece, foreign purchases are restricted in border regions and require special permits from the Ministry of National Defense.

These measures reflect the growing sense of caution in Europe over foreign ownership of land and property. The increasing concerns in Cyprus may well push for similar reforms, with calls for greater scrutiny of foreign buyers becoming louder by the day.

Global arabica coffee prices surged past $3.60 per pound on Wednesday, hitting record highs as Brazil—the world’s largest producer—faces dwindling supply and uncertainty over its upcoming harvest.

According to market dealers, 70% to 80% of Brazil’s current arabica crop has already been sold, slowing new trades. The country supplies nearly half of the world’s arabica beans, a premium variety favored in high-quality roast and ground coffee blends. Although weather conditions have improved following last year’s severe drought, Brazil’s next crop is projected to be 4.4% smaller than the previous one, as per data from the Brazilian food supply agency Conab.

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“Global coffee availability remains constrained,” noted HedgePoint Global Markets on Wednesday. “Sales of Vietnam’s robusta crop are progressing sluggishly, Central American and Colombian arabica beans are taking longer to reach the market, and Brazilian farmers are reluctant to offload additional stock.”

The ripple effects of Brazil’s supply strain are being felt across the coffee market. Arabica futures on the ICE exchange, a global benchmark for coffee pricing, briefly hit an all-time high of $3.6945 per pound before settling at $3.6655—marking a 2.5% increase on the day and a nearly 15% gain for the year. Meanwhile, robusta coffee, a lower-cost variety primarily used for instant coffee, climbed 0.9% to $5,609 per metric ton.

Adding to the market’s tightness, coffee exports from India—the world’s fifth-largest robusta producer—are expected to decline by over 10% in 2025 due to lower yields and reduced carryover stock from last season. Farmers in both India and Vietnam, the top robusta producer, are reportedly holding back sales, betting on further price increases. In Brazil, an estimated 80% to 90% of the current crop has already been sold, according to traders.

A report from brokerage firm Sucden highlights another pressing issue: Brazilian coffee growers are prioritizing domestic sales over dollar-denominated exports, despite higher international prices. This shift comes as local farmers’ financial positions have improved significantly in recent years. Moreover, Brazil’s coffee buffer stocks have plummeted to an estimated 500,000 bags—down sharply from the traditional 8 million—leaving the global market particularly vulnerable to any additional weather disruptions.

Sucden anticipates that the coffee market will log its fourth consecutive annual supply deficit this season, adding further upward pressure on prices.

Beyond coffee, other soft commodities saw notable movements. Raw sugar climbed 1.1% to 19.45 cents per pound, rebounding from a five-month low, while white sugar gained 2.2% to $522.90 per ton. Meanwhile, New York cocoa futures spiked 3.3% to $11,745 per ton, with London cocoa rising 1.6% to 9,138 pounds per ton.

Industrial production in Cyprus declined by 4.9% in November 2024, with the Industrial Production Index dropping to 102.7 units (base 2021=100), according to data released by the Cyprus Statistical Service on Thursday.

A major contributing factor to the decline was a 44.2% drop in the manufacturing of non-metallic mineral products, largely impacted by a strike in the ready-mix concrete sector that lasted from early November to early December.

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Manufacturing And Mining Suffer, Utilities Show Growth

The manufacturing sector recorded a 6.1% year-on-year decline in November, while mining and quarrying saw an even sharper contraction of 23.6%. Conversely, some industries posted gains, with water supply and materials recovery increasing by 11.4%, and electricity supply rising slightly by 0.7%.

Within manufacturing, the strongest growth came from machinery and equipment production, including motor vehicles and transport equipment (up 13.7%), rubber and plastic products (up 7.5%), and electronic and optical products (up 6.9%).

However, significant downturns were observed in non-metallic mineral products (down 44.2%), paper products and printing (down 18%), and furniture manufacturing and machinery repair/installation (down 14.4%).

Year-to-Date Performance Shows Overall Growth

Despite November’s decline, industrial production for the period January–November 2024 remained positive, registering a 2.8% increase compared to the same period in 2023.

The most notable year-to-date growth was recorded in water collection, treatment, and supply (up 22.8%), electronic and optical products manufacturing (up 12.2%), and machinery and transport equipment production (up 9.9%). Mining and quarrying, which showed a steep drop in November, still recorded an 8% increase over the 11 months.

On the downside, paper products and printing (down 11.7%), non-metallic mineral products (down 4.9%), and textiles, apparel, and leather goods manufacturing (down 4.5%) were among the hardest-hit industries.

Cyprus is set to reach a major milestone in 2027, as it prepares to transport its first natural gas, Minister of Energy, Commerce, and Industry George Papanastasiou said on Thursday.

Following a meeting with trade union SEK, Papanastasiou highlighted the significance of the upcoming agreement with Egypt, which President Nikos Christodoulides will personally underscore during his visit to the neighboring country.

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“The signing of agreements that will commercialize Cyprus’ natural gas is a crucial step forward,” the minister stated. He noted that while discussions have long focused on exploration and reserves, the next and most critical phase—exporting gas to international markets—is now underway.

“These agreements will define how the gas reaches global markets. This process involves Egypt as the host country, the companies that have invested in the deposits, and, of course, the Republic of Cyprus, which is eager to bring its natural gas to the market,” he explained.

SEK Union Secretary General Andreas Matsas emphasized that the deal also holds strategic importance for the European Union in its push for energy independence.

Papanastasiou further stressed that revenues from natural gas and other investments will ultimately flow back into Cyprus’ economy, reinforcing the country’s financial stability and growth.