The startup scene in the Middle East and North Africa region is buzzing with activity, from accelerator programs to funding boosts and market entries. These developments are driving growth and innovation across various sectors.
Egypt’s Raya FutureTECH recently completed its first accelerator program in collaboration with GIZ, graduating 13 startups including Arzaq Masr, Cultivaet, and Accounting Club. The winners will receive additional support and funding to further develop their solutions, setting them up for success in the market.
In the UAE, Maalexi, an agriculture-focused fintech startup, secured $1 million in venture debt from Stride Ventures. This investment will help Maalexi accelerate its growth plans and enhance its operational capabilities for more efficient procurement and distribution of food and agri-produce across the region.
Jordan’s ISSF also made a move by investing $5 million in Global Ventures’ Fund III, a series-A focused VC firm investing in mission-driven founders across the MENA region. This collaboration is expected to support Jordanian startups and capitalize on local talent, fostering growth and innovation in the ecosystem.
Hala, a UAE-based mobility company, expanded into the Egyptian market through a partnership with MwaslaTech, aiming to introduce an e-hailing taxi solution and enhance the travel experience in new cities like the New Administrative Capital. This strategic move marks the beginning of Hala’s expansion into the MENAT region.
In Qatar, Startup Grind has partnered with Builder.ai to support local startups by providing access to the AI-powered composable software platform. This collaboration will empower entrepreneurs to streamline their development processes, accelerate time-to-market, and efficiently scale their businesses in a competitive market.
According to data from MAGNiTT, the MENA VC landscape saw a 33% increase in investors in the first half of 2024, with a rise in sentiment leading to a 130% increase in the number of funds launched in the region. Despite the increase in investors, funding for regional startups dropped by 34% year on year, with e-commerce and fintech emerging as key sectors for investment.
Saudi startups led the funding race in the first half, followed by the UAE and Egypt. However, all markets saw a decrease in funding, highlighting the need for continued support and investment in the region’s startup ecosystem. With strategic partnerships, investments, and collaborative initiatives, the MENA region is poised for further growth and innovation in the coming years.