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Startups in the MENA region continue to gain momentum and attract capital, according to venture data research firm Magnitt. 

MENA startups raised over $76 million from 18 deals in the first half 2023. In contrast, the broader Middle East, Africa, and Pakistan region raised $139 million across 46 deals in the same period. 

The MENA region accounted for two of the three existing records in the Middle East, Africa, and Pakistan in August. This is a promising indication – in the first half of the year, the region attracted $1.1 billion across 193 deals, noting a year-on-year decline of 41%. 

Comparatively, the decline is better than the average global funding drop of 52%. 

While MENA’s deals declined by 49%, this was quite a drop compared to the 25% decline in international deals. 

According to the report, though there’s a 51% year-on-year fall in deal numbers, fintech still tops as the strongest sector to garner capital.

E-commerce and retail follow, enhanced by investments in Saudi Arabia’s Nana and Floward, which accounted for 80% of the sector’s total funding in the first half of the year. 

The transport and logistics sector faces significant challenges, with funding declining by almost 90% and deal numbers halved compared to the first half of last year.