UAE start-ups dominate funding in the MENA region - Beacon

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Saturday, February 10, 2024

UAE start-ups dominate funding in the MENA region

UAE tops start-up fundraisings in January

UAE start-ups dominated funding rounds in the Middle East and North Africa (MENA) region last month, raising $47 million in investments.

The value of investments raised in the UAE represent more than half (54%) of the total fundings secured across MENA in January, according to the figures compiled by Wamda and Digital Digest.

Overall, MENA start-ups raised $86.5 million across 33 deals, posting a 34% decline year on year, the report said. The first month of the year is traditionally considered a slow period for fundraising.

The UAE has quickly started to become one of the hottest tourist destinations for those wanting a lavish and luxurious city break. Tourists flock to shop, enjoy the lively nightlife, and be entertained in the glamourous streets of Dubai. This vibrant hub of activity supports the UAE's large and booming economy, which is home to many top startups. 

It's not just the nightlife and tourism that are helping the UAE economy grow. The country has had rapid growth in many sectors including retail, real estate, e-commerce, and oil and gas. UAE startups have contributed to $700 million in funding raised in just the first half of last year.

UAE startups benefit from the strong presence of VC firms and accelerators to help budding startups to build their concepts and grow their business. There are more than 350 VC firms that operate in the country and more than 50 accelerators. This highlights the fact that there is more than enough funding to go around.

Recently, it was announced that the government was launching a scheme to further boost its economy by supporting UAE startups. The programme has been designed to help the 100 top startups, in order to secure economic growth and success which will filter into the UAE's economy. It is called 'The Future 100' scheme and is targeted at startups that work within the renewable energy, technology, and space sectors.

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