The MENA startup ecosystem is flourishing, with Saudi Arabia establishing itself as a key player in attracting investment.

A recent report from Rasmal indicated that MENA startups raised $328.3 million across 60 companies in September, increasing investor confidence in the region’s entrepreneurial talent.

Saudi Arabia took the lead, securing $165.34 million for 13 startups. This increase underscores the Kingdom’s dedication to economic diversification under Vision 2030, with cities like Riyadh and Jeddah evolving into startup hubs supported by government initiatives and private investments.

The UAE closely followed, raising $114.32 million across 28 companies. Dubai’s investor-friendly policies and global connectivity continue to position it as a preferred destination for startups.

This growth aligns with the UAE’s broader strategy to reduce its dependence on oil and cultivate a diverse, innovation-driven economy. Key sectors like fintech, e-commerce, and property technology received substantial funding, supported by initiatives like the Dubai International Financial Centre Innovation Hub.

Egypt also displayed potential, attracting $25.09 million in September, primarily in the tech and innovation sectors. Despite facing economic challenges, Cairo’s startup scene is gaining momentum, bolstered by government support for small and medium enterprises, which provides essential infrastructure for early-stage companies.

Regional players like Bahrain, Oman, and Morocco are also making strides, albeit on a smaller scale. Bahrain is concentrating on fintech, while Oman targets logistics and e-commerce, showcasing these countries’ ambitions to establish a unique position within the MENA startup landscape.

In terms of sectors, fintech led the way in September, securing $134.84 million, while logistics technology experienced a notable surge, driven by the region’s expanding e-commerce market. SHIFT, a logistics tech company, clinched the month’s largest deal with an $83 million investment, underscoring the sector’s crucial role in meeting evolving supply chain demands.

Late-stage startups dominated the funding scene, attracting $129.08 million, reflecting investors’ preference for ventures with established market success. However, early-stage companies garnered attention, raising $57.3 million across 33 deals, demonstrating the ecosystem’s commitment to nurturing new ideas.

The report highlighted a significant gender gap in funding, with male founders securing 96.79% of total funds, while female founders received just 3.21%. This disparity underscores the ongoing challenges female entrepreneurs face in accessing venture capital, despite the sector’s overall growth.