Startup deals and funding fell by 13% year-on-year in the Middle East and North Africa region for the first nine months of 2024, though the decline was lower than in most other parts of the world, according to new data.

Data firm MAGNiTT released a new report on Tuesday that showed the Middle East far outperformed other markets and regions, including Africa and Southeast Asia, which saw steeper drops. Globally, deals and funding in the first nine months of 2024 fell by 21% and 11%, respectively, compared to the nine months of 2023.

European and US markets have plateaued this year in terms of startup funding. MAGNiTT CEO Philip Bahoshy told Al-Monitor, "What we know is that the MENA region tends to lag what happens in the US by at least two to three quarters, so we anticipate heading into the end of year and into next year, things will begin to flatten out."

MENA startups raised $1.3 billion in 352 deals, with the UAE, Saudi Arabia and Egypt posting growth in deal volumes driven by a surge in early-stage investments, the report found. This figure was 6% less than the same period in 2023.