Mapping MENA’s VC ecosystem

On Sep 21, 2022

Appetite for venture capital-backed companies in the Middle East and North Africa region has remained strong this year, with capital raised on track to match last year’s figures.

Since the beginning of 2022, a total of $12.6 billion has been invested in the region across 874 deals, according to PitchBook data. At this pace, the region could see another record year in terms of deal value, although the number of deals may fall short of last year’s total as VCs place fewer bets.

Strong government support has been a key driver behind MENA’s strengthening VC market, with sovereign wealth funds like Saudi Arabia’s Public Investment Fund and the Abu Dhabi Investment Authority offering an abundance of local capital. The region’s close proximity to the rest of Africa and Asia, as well as its predominantly young population, also benefits its startups.

Israel continues to be the region’s biggest VC destination thanks to the maturity of its ecosystem, strong ties with the US and a highly skilled workforce—according to PitchBook, the country is ranked second in the world in terms of VC investment per capita. The UAE has also seen significant growth this year, with $2.4 billion invested, a near 200% increase from 2021.

See below for some of the key trends that have defined MENA over the past few years, including dealmaking, fundraising and exit activity.

Featured image by KhaledSaad001/Shutterstock