For the MENA region, the impacts of climate change are undeniable – 12 of the world’s 17 most water-stressed countries are found here. It’s predicted the future adverse effects from climate change will cost the regional countries between 6% to 14 % of their GDP primarily due to water-stressed impacts on agriculture, health, and incomes. Unprecedented heat waves will affect more than 100 million people, and crop yields are expected to decline by 30%.  

But as climate technology continues to evolve, it addresses challenges linked to global warming, revolutionizing the energy systems and curbing emissions.   

In fact, the renewable energy industry witnessed the largest number of deals among climate tech funding, capturing a share of 18% of the total deals closed between 2018 and 2022, according to a report –  State of Climate Tech Venture Capital Report – by MAGNITT.  

2022 was a record year for climate tech funding in the MENAT region, with investment crossing a quarter billion dollars for the first time.

Between 2018 and 2022, the UAE secured the top spot as the most-funded country in climate technologies in the Middle East and North Africa and Turkey (MENAT) region. The Gulf state has received $401 million out of the total 651 million in funding in the region, which is 62% of the total venture funding, across 45 deals, according to the report.

The report found Turkey and Saudi Arabia following the UAE with $124 million and $68 million in climate tech funding. Egypt received $42 million, and Tunisia $6 million.

Overall, the region has witnessed a climb in VC activity in these past five years, totaling $651 million in funding across 225 deals. 

Currently, climate tech accounts for 5% of total VC funding, an 11-fold growth since 2018. 

However, VC funding for the climate tech sector peaked in 2022, reaching $270 million. Similarly, in 2022, Pure Harvest Smart Farms, a leader in sustainable agriculture, recorded a climate tech deal of $181 million, capturing 67% of the year’s total funding. 

Ahead of COP28, $40 million was raised and invested in climate tech funding in H1 2023. The report also highlighted that the horticulture sector saw the highest amount of venture funding at $288 million, followed by renewable energy at $118 million.

In the last five years, when looking at deals, renewable energy was ranked first, with 39, accounting for 17% of total transactions in the MENA and Turkey region. The farming sector followed with 55 transactions during the same period.