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Start-ups across the Middle East and North Africa (MENA) recorded a huge slump in investments in August, as investors continued to tighten purse strings.
The month recorded a total of $83 million raised in 30 deals, down by 24% from last year and 76% from the previous month, according to the latest report from Wamda and Digital Digest.
The decline reflects a wider trend that has affected businesses in other markets. In various regions including the Middle East, Africa, Southeast Asia, Turkey and Pakistan, venture funding reached $287 million in August, marking the lowest total recorded this year, according to a separate report from Magnitt.
“With rising interest rates and a more cautious approach from institutional investors, August’s numbers capture a market under pressure,” Magnitt said.
Within MENA, the UAE dominated the investments for the month, with 13 start-ups securing $55.7 million, according to the report from Wamda and Digital Digest.
Saudi Arabia came second, with investments in nine start-ups reaching $15.8 million, followed by Egypt ($7.6 million), Kuwait ($3 million) and Tunisia ($1 million).
In terms of sectors, those in financial technology (fintech) topped the deals, securing a total of $54 million. Web 3 and Foodtech were also popular, with investments reaching $13.5 million and $9 million, respectively.
(Writing by Cleofe Maceda; editing by Brinda Darasha)