Startup investment across the MENA region saw a significant drop in March, falling by nearly $210 million compared to the previous month amidst escalating regional tensions. Despite the slowdown, a new report from entArabi shows that 19 startups still collectively raised over $64.31 million.
Quick Facts
- Total March Funding: $64.31 million across 19 startups.
- Dominant Hubs: UAE and KSA secured 90% of total funds.
- Top Sectors: Fintech and E-commerce attracted the most capital.
A Tale of Two Hubs: UAE and KSA Command the Scene
The United Arab Emirates and Saudi Arabia continued to anchor the region’s investment activity, together accounting for over 90% of the total capital deployed in March.
The UAE took the top spot, with its startups securing $31.35 million across seven deals, representing nearly half of the month’s total funding. The country showed strong activity in AI with deals for zypl.ai and Skipr Ledgers, and in fintech through investments in Utexo and Qudwa.
Saudi Arabia followed closely, raising $26.86 million from five deals. The Kingdom’s activity was notably concentrated in the e-commerce sector, driven by a standout $15.86 million round for Thnna. The EdTech sector also saw movement with GAGA raising $2.5 million, alongside an investment in the semiconductor space with Rimal Semiconductors.
Fintech and E-commerce Emerge as Top Sectors
Fintech and blockchain proved to be the most attractive sector for investors, pulling in $16.1 million, or just over 25% of the total funds. This was followed closely by e-commerce and retail, which captured $15.87 million, largely due to the Thnna deal.
Digital health and AI also attracted significant capital. The digital health sector raised over $15 million, while AI startups collected more than $11.25 million, demonstrating continued investor confidence in deep-tech solutions.
Morocco’s Mobility Scene Gains Traction
Beyond the two Gulf giants, Morocco emerged as a notable player, securing over $3.1 million across three deals. The country’s investment activity was concentrated in the smart mobility sector, with funding for GoSwap and Weego. Digital infrastructure also saw a boost with an investment in Netcom Technologies.
Source: entarabi
