The Middle East and North Africa’s startup ecosystem experienced a dramatic resurgence in July, with investments soaring over 200% compared to the previous month.

In July, $355 million was poured into 38 startups across the Middle East and North Africa, marking a 260% year-on-year increase, according to data from Wamda and Digital Digest.

Egypt emerged as the region’s top performer, securing $185 million across seven deals. This surge propelled the North African nation to the top of the investment rankings, eclipsing the mere $15 million raised in June. The UAE maintained its position as a startup hub, clinching 12 deals, followed closely by Saudi Arabia and Egypt with seven each. Jordan rounded out the top four with six investments.

Fintech continued to be a top choice for investors in July, capturing $180.8 million. Other sectors like Web3, cleantech, deeptech, and e-commerce attracted significant funding, with $85 million, $37 million, $20 million, and $15.7 million, respectively.

Notably, debt financing accounted for less than 1% of total investments, signaling that the early-year slump in the MENA tech sector may be easing.

The business-to-business (B2B) model dominated the investment landscape, attracting $345 million across 27 B2B companies in July. In contrast, nine business-to-consumer (B2C) startups managed to raise nearly $8 million, while the remaining funds were split between two B2B2C startups.

Despite the surge in overall investment, female entrepreneurs continued to face challenges within the tech ecosystem. Only two female-led startups secured a combined total of $270,000 during the month. Additionally, four co-founded startups raised $20.5 million, with the bulk of the remaining funds going to male-led ventures.

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