Mena Startup Ecosystem Sees Major Funding Surge in August
The Middle East and North Africa (Mena) startup ecosystem experienced a significant surge in funding during August, raising $337.5 million across 47 transactions. This represents a 74% increase compared to the same period last year. The UAE and Saudi Arabia were the dominant players, together accounting for over 94% of the total capital raised. While Saudi Arabia led with $166 million, the UAE secured $154 million and was highlighted as the region’s most diversified startup hub.
UAE’s Role as a Diversified Startup Hub
The UAE’s strong performance was driven by several key deals and an evolving ecosystem. Dubai-based Property Finder completed a massive $525 million minority stake sale, one of the largest proptech transactions in the Mena region. Other notable ventures included PRYPCO, which raised a pre-Series A round, and Metric, an AI-powered fintech platform anchored in Abu Dhabi. The article notes that Abu Dhabi is fast becoming a magnet for AI-driven startups, thanks to government support and the Hub71 ecosystem.
Key Sector and Market Trends
In August, proptech was the leading sector, raising $96 million, followed by fintech, which secured $68.3 million. There was a clear market trend toward later-stage ventures, with Series A and Series B rounds attracting nearly $200 million. The data also highlighted progress for female founders, with two Saudi startups led by women raising a combined $72.3 million. The UAE’s success is attributed to its world-class infrastructure, progressive regulations, and strong government backing, making it a crucial launchpad for startups looking to scale regionally and globally.
