CAIRO: According to recent data, venture capital investments in the Middle East and North Africa reached $355 million in July, up 206 percent from June and 260 percent year over year.
This expansion demonstrates the region’s tenacity in the face of rising geopolitical tensions, including possible hostilities between Iran and Israel, and global economic difficulties. According to Wamda’s monthly report, the number of deals remained consistent at 38, suggesting a stable investment climate despite the wider uncertainties.
Rekindled optimism is probably being fuelled by expectations of a US Federal Reserve interest rate cut in September, which could improve market liquidity and investment appeal.
Less than 1% of all investments in July came from startup debt financing, indicating a shift in funding sources towards venture capital and a rebound from previous investment downturns.
With $185 million from seven deals, Egypt became the top destination for venture capital, a significant increase from June’s $15 million from four deals. A single $157.5 million investment in the fintech startup MNT-Halan was a significant factor in this rise. The UAE followed with $96 million invested across 12 startups, while Saudi Arabia saw a sharp decline to $31 million from seven deals, falling behind Oman, where startup 44.01 raised $37 million.
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