Tech investment slump reaching critical stage for cash strapped Middle East startups
Al-Monitor subscribers
Samuel Wendel
Senior Market Research Analyst, Al-Monitor
July 16, 2024
Tech startup investment continues sliding in the Middle East, with funding across the first six months of 2024 receding back to levels not seen since before local digital economies boomed during the COVID-19 pandemic. Regional startups raised $116 million in June, bringing the H1 2024 total to $882 million, down about 62% from the $2.3 billion raised in H2 2023 and 45% from $1.6 billion in H1 2023, according to data from startup investment platform Wamda. Crucially, H1 also signaled that investment growth could be leveling off in Saudi Arabia, which defied this downturn in 2023. To be sure, there are some bright spots (see: Saudi fintech giants) but many startups will soon risk running out of money if this crunch persists into 2025.
