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With $700 million raised in first half, UAE remains startup hub

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The UAE continues to be the most funded and traded market in the MENA region, accounting for 50% of cumulative investment in the region.

The UAE has maintained its supremacy as the top destination for startups in the Middle East and North Africa (Mena), securing nearly $700 million in funding through 85 deals in the first half of the year, latest figures show.

In partnership with the UAE Development Bank (EDB), Magnitt released the first UAE Venture Capital Report, stating that the UAE continues to be the most funded and traded market in the MENA region, accounting for 50% of cumulative investment in the MENA region. area.

Saudi Arabia came in second with $584 million in 79 deals, while Egypt came in third with $307 million in 78 deals.

In terms of funding, Bahrain climbed three places to fourth by securing $116 million in funding, while Tunisia moved up one place to fifth among its start-ups with $36 million.

In terms of deals, Tunisia moved up two positions to fourth with 15 deals, while Bahrain jumped to fifth with 10 deals. About 25% of the total capital raised in the UAE was driven by Pure Harvest’s $180.5 million mega-round ($100 million+), the 10th consecutive year of huge deals in the MENA region. The Pure Harvest deal drove 26% of venture capital raised in the UAE in the first half of 2022.

In terms of first-half funding, Tabby ($54 million), Wahed ($50 million), altibbi ($44 million), and Huspy ($37 million) were the leading startups.

Ahmed Mohamed Al Naqbi, CEO of EDB, said: “We are constantly exploring new initiatives and opportunities to foster business growth, strengthen the entrepreneurial culture and provide funding solutions to enhance the entrepreneurial ecosystem across the UAE.”.

Noor Sweid, managing partner at Global Ventures, said the UAE continues to cement its position as the region’s leading innovation hub, amassing 27.3% of deals and 34.4% of funding in the MENA region this year alone.

“We have been witnessing the birth and development of the pioneering solutions the UAE provides for the region and the world vertical. The UAE is fast becoming an illustrative example where some of the most promising and fundamental opportunities for the future will come from the region,” Sri Lanka said. Wade said.

Fintech remains the leading sector preferred by UAE investors, driving 32% of total deals and 33% of total capital deployed in the first half. The company achieved 249% year-over-year growth in the first half of the year by securing $234 million in financing.

Pure Harvest’s $180.5 million deal made the agriculture sector the UAE’s second-largest source of funding in the first half.

With $50 million in funding, fashion and lifestyle jumped 13 spots to third, while healthcare ($50 million) moved up 6 spots to fourth. Transportation and Logistics, which raised $40 million, fell to fifth place.

In terms of transaction volume, e-commerce and transportation and logistics remained in second and third place, while education technology climbed six places to become the fourth-largest industry in terms of transaction volume in the first half of the year. Healthcare also moved three places to make it into the top five.

Sharing El-Badawi, CEO of Dubai Future Zone Fund, said the UAE is on the cusp of opening up and innovative efforts to reap compound returns, especially for the startup ecosystem and the venture capital that supports it.

“With growth of more than 8% in the first quarter of 2022, the UAE economy is set for its strongest growth in more than a decade. Dubai and the UAE have historically led the way in terms of number of deals and deployment of venture capital. A lot of money, we expect this trend will continue for years to come,” El-Badawi said.

“More than ever, we are bullish on the UAE’s venture capital landscape and the benefits it will bring to the region,” he said.

Shane Shin, founding partner of Shorooq Partner, said the UAE has achieved unprecedented success in attracting venture capital investment for start-ups and new fund managers settled in the country by launching comprehensive national projects to enhance the role of entrepreneurship in the economy .

Referring to Magnitt’s first-half report, he said that the UAE topped the list, attracting VC investment in startups from the Middle East, Africa, Turkey and Pakistan in 2021, up 93 per cent, surpassing $1 billion in VC investment. Start a business for the first time.

“The solid results achieved over the past few years have confirmed the UAE’s ability to attract quality startups and investors, and solidified its position as the go-to place to connect pioneering talent with local, regional and international investors,” Shin said.

Copyright © 2022 Khaleej Times. all rights reserved. Provided by SyndiGate Media Inc. (Syndicate information).

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