June 2024 witnessed a slowdown in investment pace in tech startups in the Middle East and North Africa (MENA) region, with 38 startups raising $116 million, bringing the total funding in the first half of the year to $882 million.
This slowdown represents a 59% decrease compared to May, but it remains 182% higher than the same period last year, indicating sustained long-term sector growth.
The United Arab Emirates led the region in attracting investments, with its startups raising $82.5 million. Egypt ranked second with $15 million in funding, while Saudi Arabia fell to third place with $13.5 million. Iraq also saw notable investment activity, with six startups raising $1.2 million.
June lacked large deals, while the fintech sector was the most funded, raising $38 million. Proptech companies also made significant progress, raising $19.6 million.
Funding rounds focused on early stages, with four startups receiving $45 million in Series A rounds. B2B startups dominated the scene, raising $66.4 million, while B2C startups raised $49.5 million. As always, male-led startups dominated the funding, raising $103.4 million, while only two female-led startups received $200,000. Additionally, last month saw grants totaling $140,000 awarded to eight pre-seed startups.
This investment slowdown indicates a cautious trend among investors, but it still represents tremendous growth compared to last year. The MENA region remains a promising market for startups, with significant opportunities across various sectors.
