Investments in start-ups across the Middle East and North Africa (MENA) region posted a double-digit decline during the first nine months of the year, but funding activity has remained “relatively resilient,” according to new research.

From January to September this year, start-ups secured a total of $1.316 billion, registering a 13% drop from 12 months earlier, while the number of deals also fell by 6% to 352, Magnitt said in its report.

“Deal activity was relatively resilient,” the venture capital (VC) data firm said, noting that compared to other emerging markets, the region has fared well. Deal activity in Africa dropped by 42% and Southeast Asia by 28%.

Excluding mega deals, the MENA region’s VC market also posted a 7% growth in funding,

Top performers in MENA

During the nine-month period, Saudi Arabia topped the table in terms of funding value, accounting for 39% of the total for the MENA region.

In terms of deal volume, the UAE emerged as the most active, recording a 12% increase. The market also accounted for 38% of all deals.

The region also saw an influx of "unique investors", which rose by 34% year-on-year.

Among the sectors raising fresh capital, fintech landed the top spot, snapping up 37% of total funding, Excluding mega deals, fintech start-ups saw a 31% increase in funding.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com