Startups across the Middle East and North Africa pulled in US $3.94 billion in 2022, proving investor appetite remains strong even as global capital tightened.
New data compiled by regional trackers shows venture funding climbed 24 per cent year-on-year across 795 deals, with the UAE, Saudi Arabia and Egypt keeping their long-held lead. The UAE still tops the table—US $1.85 billion over 250 rounds—but Saudi posted the faster growth, up 40 per cent to US $907 million. Egypt, buoyed by later-stage cheques, saw a 70 per cent leap to US $736 million. Smaller ecosystems also logged gains, including Algeria, Bahrain, Oman and Palestine, suggesting capital is trickling beyond the “big three”. Fintech absorbed nearly a third of all cash at US $1.1 billion, driven by neobanks, open-banking plays and alternative-lending platforms. Clean-tech followed thanks largely to Yellow Door Energy’s US $400 million raise, while logistics took third spot amid surging e-commerce volumes. Deal flow was choppy—US $1.04 billion in Q1, sinking to US $696 million in Q3 before rebounding in Q4—but later-stage tickets and a sharp uptick in venture debt (US $500 million, up 89 per cent) helped steady totals. One red flag: women-founded start-ups attracted just 1.3 per cent of capital, mirroring global disparities.
Education data hint at why—female founders are more likely to hold advanced degrees, yet only 62 solo female-led companies closed rounds. Analysts say the next growth curve will hinge on broadening investor networks into second-tier markets, closing the gender funding gap and sustaining sovereign-backed debt lines that keep runways intact.
Fintech “remains the darling of the start-up world in Mena,” drawing almost one-third of all funding. Founders eyeing 2023 rounds should monitor sovereign fund programmes and new venture-debt vehicles set to launch this summer.
