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29 August, 2021

$755 m Funding for UAE Startups in First Half

Startups based in UAE obtained a total funding of $755 million in the period of Jan-Jun 2021, according to a report released by MAGNiTT.


The overall venture capitalist funding for Jan-Jun 2021 in the MENA region reached a record high of $3.47 Billion, of which startups alone accounted for $1.2 Billion of funding. This $1.2 Billion funding secured by startups marks a 64% increase over last year.


Within the MENA region, UAE accounted for 26% of investment, followed closely by Egypt at 24% and Saudi Arabia at 21%. The difference between UAE and Saudi Arabia was just 11 deals in HY1 of 2021, as opposed to a margin of 41 deals in the same period last year.


MAGNiTT, while explaining the findings, added that the global boundaries are increasingly being blurred, with investors and investments coming from a wide array of geographies into the MENA region. Almost 31% of the investments into MENA region in HY1 – 2021 were from outside the region, which marked a 4% increase over the same period last year.


The sector which led the way for investments was Fintech at $222 million in the said period. This marked the highest secured by the sector in a 6-month period, and 60% of the funding was contributed by UAE and Saudi Arabia.


Investor appetite has shifted towards bigger opportunities in the Financial Services space, which put Fintech ahead of other industries, such as food and beverage, e-commerce and delivery and logistics that thrived in previous years.


UAE has reinforced its space as a preferred destination for startups.


If you are a startup company in early stages, or an established company looking for further rounds of funding, then do get in touch with us for a free consultation to explore options.


Source : Khaleej Times

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