Startup funding across the Middle East and North Africa (MENA) region declined to $784.9 million in October, signaling a slowdown in venture investment activity compared to earlier months of the year.
The drop reflects global economic uncertainty and rising interest rates, prompting investors to take a more cautious approach toward startup financing, particularly for early-stage ventures.
While funding in key sectors such as fintech, e-commerce, and mobility saw a dip, areas like artificial intelligence and clean energy recorded growing investor interest, underscoring a shift toward innovation-driven and sustainable models.
Despite the decline, Saudi Arabia, the UAE, and Egypt remained the top three startup hubs in the region, continuing to attract the bulk of funding thanks to strong government support programs and national innovation agendas.
Analysts note that investors are increasingly prioritizing scalability, resilience, and long-term sustainability over rapid growth, suggesting a maturing startup ecosystem across MENA.
Experts anticipate a gradual recovery in 2025, fueled by accelerating digital transformation, AI adoption, and stronger collaboration between public and private sectors to drive entrepreneurship and economic diversification in the region.
