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Saudi Arabia Secures 57% of Startup Investments in the Arab Region in 2023

In a recent report published by the “Digital Digest” platform, specializing in monitoring bold investments by startups, astounding investment figures for the year 2023 in the Middle East and North Africa region have been revealed. According to these data, a total of $2.25 billion has been invested in 414 startups during this year.

The fourth quarter of 2023 witnessed investments totaling $1.06 billion in startups in the Arab region, marking the highest level recorded during the year. The third quarter saw investments worth $184.45 million, compared to $181.14 million in the second quarter and $826.78 million in the first quarter.

Regarding the distribution of these investments, Saudi Arabian companies accounted for a significant share, reaching 56.8% of the total investments in startups in the Arab region in 2023. These companies managed to raise $1.28 billion through 118 deals, representing 28.5% of the total number of deals.

According to Digital Digest data, startups in the United Arab Emirates received 25.3% of the funding, amounting to $569 million through 156 deals, representing 37.7% of the total number of deals in 2023. Egyptian companies came in third place with a share of 14.6% of the funding and 14.5% of the number of deals.

Regarding the distribution of deals throughout the year, 130 deals were executed in the first quarter of 2023, 79 deals in the second quarter, 76 deals in the third quarter, and 129 deals in the fourth quarter.

In December, investments worth $457.7 million in startups in the Arab region were announced, with Saudi companies dominating with a 95.5% share of the investment value.

In terms of deal distribution, 50 startups in the Arab region secured funding in December 2023, with Saudi investments accounting for 60%, Emirati investments at 30%, and Egyptian companies making up 10% of the deals.

On another note, startups in the Arab region secured $379 million in funding in November 2023, compared to $147.4 million in October 2023, resulting in a monthly increase of 157.1% in investment value.

Regarding the performance of countries, the United Arab Emirates, Saudi Arabia, and Egypt maintained their positions as the top countries in the Middle East and North Africa region for bold investments in 2022.

The 2022 Saudi Investment report revealed record-breaking investments of 3.7 billion Saudi Riyals (987 million dollars) in Saudi startups, marking a 72% growth compared to 2021.

Despite 2021 being a record year for bold investments in the kingdom, 2022 witnessed unprecedented growth, with the value of executed bold investments reaching a new record high.

Saudi Arabia secured the second position with a 31% share of the total invested amounts in the region in 2022, compared to 21% in 2021.

The kingdom recorded a new record-breaking participation of 104 investors in the bold investment ecosystem in 2022, with a 30% increase in the number of investors compared to 2021. Additionally, Saudi Arabia recorded twice the number of exit deals for startups in 2022 compared to the previous year, totaling 10 exit deals.

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