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MENA Startups Raise $2.3 Billion In 2024, UAE Leads With $1.1 Billion

by THEFUTURE.TEAM

January 31, 2025

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.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.