A reality check looms for Middle East's tech startups 

Al-Monitor Pro Members

Samuel Wendel

Senior Market Research Analyst, Al-Monitor

Nov. 9, 2022

After years of promising growth, MENA’s startups appear set to experience a course correction amid a broader global investment slowdown. Regional venture investment totals sagged notably in Q3 and are likely to continue falling against a backdrop of economic headwinds. Crucially, red flags are flying in Egypt as key startups struggle — most notably Capiter, a B2B e-commerce platform now embroiled in scandal after burning through $33 million in funding in barely a year. It’s a sign that regional startups need to prioritize profitability and fundamentals over aggressive growth as operating conditions worsen. Still, startups in Saudi Arabia and the United Arab Emirates are enjoying significant support, and the sector has matured enough across MENA that it should avoid a catastrophic collapse.