Start-up funding in the Middle East and North Africa, excluding the UAE, Saudi Arabia and Egypt, grew to $468 million in 2022, driven by the first mega deals in these countries, the latest study from Magnitt shows.
Funding in 2022 was nearly 37 per cent higher than the $342 million posted in 2021, showing the momentum being built in these relatively smaller markets, the start-up data platform said.
Of that amount, mega round funding — those that are $100 million and above — made their debut last year and accounted for $260 million, or more than half of total flows, it said.
The increase in funding in 2021, however, was still the biggest, as it surged about 136 per cent from $145 million in 2020, at the height of the Covid-19 pandemic, the study showed. Funding was $126 million in 2019, down from $155 million in 2018.
The number of deals in 2022, however, dropped 6 per cent to 183, from 195 in 2021 — a third straight year of declines after 206 in 2020 and a peak of 236 in 2019.
“If the impact of the $100 million-plus rounds is removed, the Mena region continues to be capital-positive,” Magnitt said.
Algeria attracted the highest funding last year with $151 million, which was a more than fivefold annual increase, followed by Bahrain with $133 million, the data showed.
Jordan and Tunisia each had $34 million, although the former was down by 72 per cent, followed by Qatar ($27 million) and Lebanon ($25 million).
Markets like Morocco, Tunisia, Kuwait and Qatar gave been winning investor interest, especially at the early stage, Magnitt said.
“In fact, Tunisia and Qatar were among the top five transacted markets of Mena in 2022,” it said.
The UAE, Saudi Arabia and Egypt collectively have the lion's share of VC funding in Mena, accounting for about 74 per cent of investments in 2022. The countries attracted funding worth $1.19 billion, $987 million and $517 million, respectively, Magnitt data showed.
The role of start-ups has continuously grown over the past years as they are a driver of digital adoption and growth, enabling consumers to access services with convenience.
The Mena region, which has a sizeable population of tech-savvy users, has become an attractive market for global investors.
On a broader scale, start-ups across the Middle East, Africa, Pakistan and Turkey (MEAPT) raised $7.2 billion through 1,473 deals last year, despite macroeconomic and geopolitical uncertainty, Magnitt had previously reported.
Funding for Mena start-ups alone crossed the $3 billion mark last year, an annual increase of 8.3 per cent, the research showed.
FinTech led both funding and number of deals in the MEAPT region, with the sector's funding reaching $2.25 billion across 351 deals in 2022, Magnitt said.
Last year, Bahrain's Procural, a B2B tendering platform, raised $1.2 million in a seed funding round led by Flagship Holding and Canada-based BenchMatrix.
The country was already put on the map by cryptocurrency start-up Rain Financial, when it raised $110 million in a Series B funding round.
If the impact of the $100 milllion-plus rounds is removed, the Mena region continues to be capital-positive
Magnitt
In Iraq, which has been facing a number political and socioeconomic challenges, venture capital investments were up at $16 million across six deals, a record high for the country.
Leading funding in Iraq last year were Baly, a “super app” similar to the UAE's Careem that raised $10.2 million in a seed round, and food delivery service TipTop, which raised $5 million also in a seed round.
Notably, while regional and international investors have supported start-ups in the country, Iraq-based initial investors, including Iraq Tech Ventures, Iraqi Angels Network and the Euphrates Iraq Fund, have ramped up their funding, which has been considered as the reason for building momentum for venture capital, Magnitt said.
Lebanon, which has similar challenges as Iraq, has been active for over a decade and raised almost $60 million in 2015, the data showed.
Among its most notable start-ups are cybersecurity platform Myki, which was acquired by US-based JumpCloud.
Destroyer
Director: Karyn Kusama
Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan
Rating: 3/5
UAE release: January 31
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
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Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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How to become a Boglehead
Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.
• Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.
• Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.
• Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.
• Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.
• Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.
• Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.
• Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.
• Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.
