A Sharp Decline in Investment Activity

The Middle East and North Africa (MENA) startup ecosystem experienced a significant cooling down in August 2024. Total investments in startups plummeted to $83 million across 30 rounds, marking a 76% month-on-month (MoM) decrease from July's $355 million.

This downturn also represented a 24% year-on-year (YoY) decline.

No Mega Deals and Limited Debt Financing

The absence of any megadeals in August was a notable trend. The largest single investment was a $30 million allocation to Yuze. Debt financing accounted for only a small portion of the total investment, representing approximately 3%.

UAE Dominates, Egypt Struggles

The United Arab Emirates (UAE) continued its dominance in the MENA startup landscape, securing the majority of investment in August. UAE-based startups raised $55.7 million across 13 deals. Saudi Arabia followed in second place with $16 million raised through nine deals.

Egyptian startups, which had been at the forefront of MENA investment in July, witnessed a dramatic decline in August, raising only $7.6 million across four deals. Kuwait also made the top four thanks to a single deal worth $3 million.

Fintech and Web3 Remain Attractive

Despite the overall slowdown, investor appetite for fintech remained strong. For the third consecutive month, fintech maintained its position as the most funded sector in MENA, raising $54 million across eight deals. Web3 also regained its appeal, securing second place with $13.5 million in funding.

Early-Stage Focus and Undisclosed Stages

The majority of August's investment was directed towards early-stage startups. Two startups managed to raise $19 million for their Series A rounds, while five startups received a total of $15.6 million in seed funding.

Notably, a significant portion of the investment went to undisclosed stages, as seven startups did not disclose their funding round, accounting for $35.4 million.

B2B Remains Popular, Female-Led Startups Struggle

The business-to-business (B2B) model continued to attract investor interest, with 13 startups raising $46 million. Business-to-consumer (B2C) startups garnered $15 million across five rounds.

Female-led startups faced ongoing challenges, comprising a mere 0.3% of the total investment. Only one female-founded startup, Powder Beauty, secured an undisclosed pre-Series A round. Another startup with a female co-founder received a $150,000 accelerator grant.

August Highlights

Despite the overall downturn, the MENA entrepreneurial ecosystem witnessed several notable developments in August. A coalition of GCC-based family offices launched the "Waad Investment" firm with a target value of $200 million.

A $100 million fund was also established in collaboration between Gate Ventures and the Blockchain Centre in Abu Dhabi to support Web3 innovation.

In Egypt, T-Vencubator launched its inaugural initiative, "Where's the Problem?" to support the Egyptian ecosystem.

In the mergers and acquisitions (M&A) domain, the UAE-based property crowdfunding platform Maisour was acquired by Meteora Developers. Kuwait-based proptech Sakan also acquired the Qatari company Hapondo.

Entlaq, in collaboration with Wamda, released its biannual report on the Egyptian entrepreneurship sector for the first half of 2024, highlighting the challenges and opportunities faced by Egyptian startups.

Mansoor Al Marar, Vice President of Industrial Business Development at Khalifa Economic Zones Abu Dhabi (KEZAD Group), has highlighted the UAE's compelling investment climate.

The country's ease of doing business, cultural diversity, safety, and stability make it an attractive destination for entrepreneurs and investors worldwide.

Al Marar emphasized Abu Dhabi's strategic role in the Belt and Road Initiative as a gateway to the Middle East and beyond.

He underscored the UAE's commitment to diversifying its economy beyond oil and gas and its development of world-class infrastructure to support various industries.

The UAE's extensive logistics network, spanning over 40 countries, and its integrated industrial zones, covering 550 square kilometers, provide a conducive environment for businesses.

KIZAD, with its digital platform and integrated services, aims to facilitate global trade and connect markets.

The "Operation 300bn" project, launched to stimulate the UAE's industrial sector, offers further incentives for investors. Al Marar called for investment in the UAE, highlighting its flexible business environment, diverse range of business activities, and comprehensive economic partnership agreements with several countries.

KEZAD remains committed to supporting investor growth in Abu Dhabi by providing the necessary tools and resources to achieve their goals. In addition to its world-class infrastructure, KIZAD offers a range of benefits to investors, including:

• Simplified procedures: KIZAD has streamlined its processes to make it easier for investors to set up and operate businesses.
  
  
• Competitive costs: KIZAD offers competitive land and utility rates, making it an attractive option for businesses looking to reduce their costs.
  
  
• Skilled workforce: The UAE has a highly skilled workforce, which can be a valuable asset for businesses.
  
  
• Supportive government: The UAE government is committed to supporting businesses and promoting economic growth.

With its attractive investment climate and comprehensive range of benefits, the UAE is an ideal location for businesses looking to expand their operations.

The Special Economic Zone at Duqm (SEZAD) in Oman is actively positioning itself as a prime destination for foreign direct investment (FDI). To further strengthen its global reach, SEZAD has recently collaborated with an Irish consultancy firm and hosted a high-level delegation from the Asian Infrastructure Investment Bank (AIIB).

Training for Enhanced FDI Attraction

In partnership with the Irish consultancy, SEZAD has launched a comprehensive training program for its staff. This program aims to equip SEZAD with the necessary skills and knowledge to attract and nurture strategic FDI.

The focus is on understanding the pivotal role of FDI in economic growth, job creation, and GDP expansion. The training covers strategies for developing compelling value propositions, targeted marketing campaigns, and effective post-investment support to foster business expansion and maximize growth.

Collaboration with AIIB

SEZAD's commitment to international partnerships is further underscored by its recent meeting with a delegation from AIIB.

The discussions explored potential investment opportunities, strategies for strengthening economic ties, and ways in which AIIB can contribute to SEZAD's strategic development goals.

Institutional Transformation

These initiatives are part of a broader effort by OPAZ, the Public Authority for Special Economic Zones and Free Zones, to transform its institution and enhance its ability to attract both local and foreign investments.

The training programs and international collaborations are key components of this transformation, empowering SEZAD to play a more active role in fostering economic growth and development.

As entrepreneurs, you're juggling a multitude of responsibilities. From strategic planning to client meetings and employee management, the demands on your time can be overwhelming. Effective time management is crucial to navigating this complexity and ensuring your business runs smoothly. Here are three essential skills to help you optimize your productivity:

1. Leverage Technology for Efficiency

• Automation: Utilize productivity tools to automate repetitive tasks like social media posting, email responses, and appointment reminders. This frees up your time for more strategic activities.
• Digital Calendars: Employ digital calendars to schedule meetings, set deadlines, and track your progress. Features like time blocking can help you allocate specific time slots for different tasks.

2. Set Clear Time Limits

• Prioritization: Identify the most critical tasks and allocate your time accordingly. Use techniques like the Eisenhower Matrix to categorize tasks based on urgency and importance.
• Time Blocking: Allocate specific time blocks for different activities. This helps prevent distractions and ensures you stay focused on your priorities.

3. Master the Art of Single-Tasking

• Focus: Instead of multitasking, concentrate on one task at a time. Multitasking can lead to reduced efficiency and increased errors.
• Eliminate Distractions: Create a conducive work environment by minimizing distractions like phone notifications and unnecessary meetings.

By incorporating these time management strategies into your daily routine, you can enhance your productivity, reduce stress, and achieve your entrepreneurial goals more effectively. Remember, effective time management isn't just about squeezing more tasks into your day; it's about working smarter, not harder.

The Lending Hub, a Saudi-based peer-to-peer lending platform, has secured a significant $3.2 million in funding led by Imbark and a group of angel investors.

This investment round was announced during the Fintech24 conference in Riyadh, underscoring the growing interest in fintech startups and the potential for innovative financial solutions in Saudi Arabia.

Founded in 2023 as a subsidiary of Imbark, a company committed to fostering entrepreneurship and innovation, The Lending Hub aims to revolutionize the traditional lending landscape by providing accessible and affordable financing options to individuals and businesses.

The company's focus on peer-to-peer lending aligns with global trends in financial technology, which emphasize transparency, efficiency, and direct connections between borrowers and lenders.

With the newly acquired funds, The Lending Hub plans to expand its operations, enhance its platform features, and strengthen its marketing efforts.

The company aims to attract a wider range of borrowers and lenders, increase transaction volume, and solidify its position as a leading player in the Saudi peer-to-peer lending market.

The investment in The Lending Hub is a testament to the growing confidence in the Saudi fintech ecosystem. As the country continues to diversify its economy and embrace technological advancements, startups like The Lending Hub are playing a crucial role in driving innovation and improving financial services.

Entlaq, a prominent Egyptian entrepreneurship support company, has acquired a stake in Brotinni, a leading local foodtech startup. The undisclosed investment aligns with Entlaq's strategy of promoting innovation and technological advancements in the food sector.

Founded in 2020 by Dalia Abu Omar, Brotinni operates as a dark store, offering customers the convenience of buying meat and poultry products online. The new partnership will enable Brotinni to expand its operations both within Egypt and in other regional markets.

Leveraging Entlaq's Expertise

Brotinni will benefit from Entlaq's extensive experience in business development and acceleration. This collaboration will help Brotinni enhance its market reach, particularly in the meat and poultry sectors, and strengthen its position as a leading player in the foodtech industry.

Innovative Solutions

Brotinni's commitment to innovation is evident in its use of industrial biotechnology and environmentally friendly green technologies. By integrating advanced technologies into its logistics and supply chains, Brotinni aims to reduce its environmental impact while ensuring the sustainability of its food products.

Previous Funding

In 2022, Brotinni successfully raised a $600,000 seed round led by Innlife investments. This previous funding provided the company with valuable resources to fuel its growth and development.

A Promising Partnership

The partnership between Entlaq and Brotinni is expected to have a positive impact on both companies. By combining Entlaq's expertise with Brotinni's innovative solutions, the collaboration has the potential to drive growth and innovation in the Egyptian foodtech sector.

Saudi Arabian startup Reachware has successfully raised $3 million in seed funding, led by Sadu Capital with participation from 500 Sanabil Investments and Elm Company.

Founded in 2021 by Hamza Abusitta and Maysarah Mashaal, Reachware offers businesses a comprehensive suite of services, including system integration, process automation, and advanced analytics. The company's innovative solutions have helped clients streamline operations, reduce errors, and gain valuable insights.  

Plans for Growth

With this new funding, Reachware aims to expand its operations, develop new products, and enhance its sales and marketing efforts in the GCC market. The company plans to hire additional talent, explore AI and machine learning technologies, and strengthen its partnership program.

Investor Confidence

The investment round was led by Sadu Capital, a leading early-stage fund that recognizes Reachware's potential to transform the automation and integration landscape. Salem Washeely, Managing Director at Sadu Capital, commented on the investment, stating, "In the era of digital transformation, the need for seamless system integration and unified reporting has become paramount. Reachware's deep expertise and innovative approach make them well-positioned to dominate this market in the MENA region."

Strategic Partnerships

Reachware has already established strong partnerships with major tech companies and regional institutions. These collaborations have enabled the company to integrate with over 200 systems, ensuring seamless data flow between different applications.

Customer Success

Since its launch, Reachware has attracted over 300 clients from various industries, including retail, manufacturing, financial services, hospitality, and e-commerce. The company's solutions have helped clients improve efficiency, reduce costs, and make data-driven decisions.

A Bright Future

With this significant funding boost, Reachware is poised to accelerate its growth and become a leading player in the automation and integration market. By leveraging its innovative solutions and strategic partnerships, the company is well-positioned to shape the future of business technology.

Startups often find themselves captivated by the marketing prowess of established giants, dreaming of emulating their grand campaigns. However, the reality is stark: the budget of a startup is worlds apart from that of a behemoth like Apple or Amazon. While those companies can afford prime-time ad spots and billboard domination, startups must find creative, cost-effective ways to reach their audience.

Fortunately, history is replete with examples of startups that achieved remarkable success with minimal financial outlay. Apple's humble beginnings involved showcasing their product to tech enthusiasts at the Homebrew Computer Club. Dropbox leveraged a referral program, rewarding users with extra storage space for each friend they invited.

Slack capitalized on word-of-mouth, relying on early employees to introduce the platform to their professional networks. These examples underscore the power of resourcefulness and ingenuity in the early stages of a startup.

To emulate these successes, startups must embrace a scrappy, cost-conscious approach to marketing. This involves identifying and implementing low-cost strategies that deliver maximum impact. From content creation and SEO to public relations and social media, a well-executed marketing plan can propel a startup towards growth without breaking the bank.

Content Marketing: Building a Foundation

Content marketing is a cornerstone of any successful startup. It involves creating valuable, relevant, and consistent content to attract and retain a clearly defined audience. By establishing your startup as a thought leader in your industry, you can build trust, credibility, and brand awareness.

• SEO Optimization: Writing content with search engine optimization (SEO) in mind is a cost-effective way to increase visibility. Focus on creating high-quality content that addresses your target audience's needs and incorporates relevant keywords.
• Thought Leadership: Develop content that showcases your unique perspective and expertise. Position your startup as an authority in your industry by sharing valuable insights and opinions.
• Effective Distribution: Ensure your content reaches the right audience by distributing it through social media, email newsletters, and relevant online communities.

SEO Marketing: Improving Search Visibility

Search engine optimization (SEO) is the process of optimizing your website to improve its ranking in search engine results pages (SERPs). By appearing higher in search results, you can increase website traffic, generate leads, and drive sales.  

• Keyword Research: Identify the keywords and phrases your target audience is searching for. Use tools like Moz, Ahrefs, and SEMrush to conduct thorough keyword research.
• Technical SEO: Ensure your website is technically sound to improve its crawlability and indexability. Optimize website speed, structure, and mobile-friendliness.
• Backlink Building: Acquire high-quality backlinks from reputable websites to boost your website's authority and search rankings.

Social Media Marketing: Engaging Your Audience

Social media platforms offer a vast audience, but it's essential to focus on the platforms where your target audience is most active. By developing a strong social media presence, you can build brand awareness, engage with customers, and drive traffic to your website.

• Organic Growth: Utilize organic social media marketing to share updates, interact with followers, and join relevant conversations.
• Platform Selection: Choose social media platforms that align with your target audience and brand identity. Avoid spreading your resources too thin across multiple platforms.
• Social Listening: Monitor conversations related to your industry and participate in relevant discussions to establish your startup as a valuable contributor.

Events and Conferences: Networking and Building Relationships

Attending industry events and conferences provides opportunities to connect with potential customers, partners, and investors. By actively engaging with attendees and showcasing your product or service, you can generate buzz and build relationships.

• Elevator Pitch: Prepare a concise and compelling pitch that highlights your product's value proposition and benefits.
• Product Demos: Be prepared to demonstrate your product or service to interested parties.
• Follow-up: Collect contact information and follow up with new connections to nurture relationships.

Public Relations (PR): Generating Media Coverage

PR can help you reach a wider audience and build credibility for your startup. By securing media coverage in relevant publications, you can generate positive publicity and attract new customers.

• Founder Outreach: Journalists often prefer to speak directly with founders. Encourage your founders to build relationships with journalists and pitch story ideas.
• Compelling Pitches: Develop compelling pitches that highlight the newsworthiness of your startup and its products or services.
• Target Niche Publications: Focus on smaller, niche publications that cater to your target audience rather than aiming for major media outlets.

Email Marketing: Building Customer Relationships

Email marketing is a powerful tool for nurturing leads, building relationships, and driving sales. By collecting email addresses and sending targeted campaigns, you can stay connected with your audience and convert prospects into customers.

• Email List Building: Implement strategies to capture email addresses, such as offering incentives or gated content.
• Customer Segmentation: Divide your email list into segments based on demographics, behavior, or preferences to deliver personalized content.
• A/B Testing: Experiment with different subject lines, email content, and call-to-actions to optimize your email campaigns.

SMS Marketing: Reaching Customers Directly

SMS marketing allows you to connect with customers directly through their mobile phones. By sending timely and relevant messages, you can drive engagement and increase conversions.

• Incentivize Sign-ups: Offer incentives to encourage customers to opt-in to SMS marketing.
• Provide Value: Send valuable content, exclusive offers, or important updates through SMS.
• Respect Privacy: Allow customers to easily opt out of SMS messages and comply with anti-spam regulations.

By implementing these low-cost marketing strategies, startups can effectively reach their target audience, build brand awareness, and drive growth. Remember, consistency, creativity, and a deep understanding of your target market are essential for success.

In conclusion, there's no one-size-fits-all marketing strategy for startups. Each company has a unique identity and target audience. Therefore, every company must develop a customized marketing strategy that meets its specific needs and goals. Now is the time to turn this knowledge into action.

Set your marketing goals, explore available opportunities, and start implementing your plan. Remember, marketing is both a science and an art, and you must continue to learn, develop, and analyze results. By consistently measuring and analyzing the performance of your strategy, you can identify what's working and what's not and adjust your strategy accordingly. Be patient and persistent, and you will achieve the results you seek

Oman’s capital market has attracted investors from 135 nationalities, up from 67 in 2023, supported by favorable policies including low tax rates and flexible capital transfer options.

Newly released statistics from the Muscat Stock Exchange reveal a 19 percent increase in foreign investments as of May, including participants from the Gulf Cooperation Council, Arab countries, and beyond.

Oman’s capital market has implemented policies favoring foreign investments, including unrestricted profit repatriation and exchange operations. This trend aligns with the nation’s economic resurgence and growing institutional confidence in government strategies aimed at reducing public debt, increasing investment in essential services, and launching infrastructure projects to bolster private sector participation.

The MSX data also indicates that foreign investments are predominantly focused on the industrial and service sectors, accounting for 15.8 percent and 15.7 percent respectively.

Gulf investors are particularly focused on the services sector, accounting for 15.4 percent, and the financial industry at 8.5 percent.

Conversely, non-Gulf Arab investments are primarily directed toward the financial sector, comprising 3 percent.

Local investments heavily favor the financial industry at 87.6 percent, followed by the industrial sector at 75.6 percent and the services sector at 67.7 percent.

The first half of this year has seen significant growth in trading activity at MSX, underscoring heightened market dynamism.

Trading volumes surged to 3.1 billion securities, surpassing 517 million Omani rials ($1.3 billion) in value by the end of May, marking a notable 38.4 percent increase from the previous year.

Executed transactions also rose, reflecting increased market participation and liquidity.

The exchange is expanding its database on listed companies to enhance transparency and advocate for disclosure standards among publicly traded entities, the Oman News Agency reported.

Additionally, efforts are underway to encourage government and family-owned businesses to transition into privately held entities, enriching market diversity and investment opportunities.

Foreign investors can invest in shares of MSX-listed companies or investment funds without prior permission, under the oversight of an independent supervisory body ensuring market fairness, investor protection, and transparency.

Foreign investment in MSX-listed public joint-stock companies is permitted up to 100 percent, with significant interest observed in the industrial and services sectors, highlighting diversified investor preferences.

Reflecting positive sentiment, the market capitalization of MSX-listed public joint-stock companies reached 9.4 billion rials by May’s end, up 448.5 million rials since the start of the year.

The broader market value of all MSX-listed securities rose to 24.48 billion riyals, a gain of 676 million riyals year-over-year, bolstered by contributions from closed companies and the bond and sukuk market.

Market indices reflected this growth, with the main index climbing to 4845 points by May’s close, up 331 points from the previous period.

Successful IPOs by entities like Abraaj Energy Services and OQ Gas Networks have attracted new investors and boosted market liquidity, with OQ considering IPOs for two more subsidiaries this year, according to Bloomberg.

This upward trend underscores investor confidence in MSX’s growth potential, supported by Oman Investment Authority’s plans to offer additional companies for public subscription in the coming years.

The OIA reported a 7.4 percent year-on-year increase in Oman’s sovereign wealth fund assets, reaching 19.24 billion rials in 2023, with a 9.95 percent return on investment, as disclosed in a statement on X.

This performance underscores the authority’s pivotal role in fostering economic growth and stability in the Middle Eastern country.

The robust results also reflect the OIA’s strategic investment approach and effective management of its diverse portfolio, in line with its mandate to manage national funds and assets, build financial reserves, and advance targeted economic sectors through government policies.

At a media briefing in Muscat earlier this month, the authority affirmed its commitment to contributing over 6 billion rials annually to the state’s general budget from 2016 through 2023.

The statement further outlined the OIA’s plans to geographically diversify its new foreign and local investments across various sectors, while facilitating technology transfer and modern techniques to bolster targeted local industries.

Looking ahead, MSX aims to strengthen its regulatory framework, expand investor outreach initiatives, and cultivate an environment conducive to sustainable economic growth, the Oman News Agency reported.

By enhancing its reputation as a gateway for international investment and adhering to global best practices in financial markets, MSX aims to maintain its position as a leading choice for investors interested in opportunities in Oman’s dynamic capital market, it added.

The Middle East and North Africa (MENA) startup ecosystem experienced a remarkable resurgence in July 2024, with a staggering $355 million invested across 38 startups.

This represents a monumental 206% month-on-month (MoM) increase and a more than 260% year-on-year (YoY) growth, signaling a robust rebound from the earlier investment slump.

This surge is particularly noteworthy given the backdrop of a global economic downturn and escalating geopolitical tensions in the region. However, the looming prospect of a Fed rate cut in September appears to have injected renewed optimism into the market, driving investor confidence.

A notable shift in investment trends emerged in July. Debt financing, which had previously gained traction, took a backseat, accounting for less than 1% of total investments. This indicates a growing preference for equity-based funding, suggesting a healthier investment climate.

Egypt emerged as the undisputed leader in July, securing a substantial $185 million across seven deals. A single transaction, involving MNT-Halan, accounted for a significant portion of this amount.

While the UAE retained its position as the second-largest recipient of investment with $96 million, Saudi Arabia experienced a downturn, securing only $31 million. Surprisingly, Oman claimed the third spot, thanks to a substantial $37 million investment in 44.01.

Fintech continued its dominance as the most favored sector, attracting $181 million across 16 startups. The Web3 sector followed closely with $85 million invested in just two startups, highlighting the growing interest in decentralized technologies.

Deeptech and cleantech gained prominence, securing significant investments in 44.01 and Intelmatix, respectively. Although e-commerce witnessed a decline in terms of investment, it remained active with six deals securing $15.7 million.

The investment landscape tilted towards early-stage startups, with seed-stage companies receiving $96 million across eight deals, closely followed by Series A with $91.7 million across eight deals. Pre-seed startups secured a modest $1.8 million across five deals.

B2B models continued to dominate investor interest, capturing $345 million across 27 businesses. In contrast, B2C startups received a comparatively smaller amount of $8 million across nine deals.

While the overall investment landscape showed signs of recovery, the gender disparity persisted. Only two female-led startups secured a combined $270,000, highlighting the ongoing challenges faced by women entrepreneurs in the MENA region.

The M&A landscape witnessed some activity, primarily centered in the UAE. Notable deals included the acquisition of BitOasis by CoinDCX, Power League Gaming by Muller & Phipps Middle East Group, and Lableb by Majarra.

Overall, July 2024 marked a significant turning point for the MENA startup ecosystem. The substantial increase in investment, coupled with a shift towards early-stage funding and a renewed focus on equity-based deals, indicates a promising outlook for the region's tech sector.

However, addressing the gender gap in investment and fostering a more inclusive ecosystem remains crucial for the sustainable growth of the MENA startup landscape.