Egypt’s startup ecosystem has been rapidly evolving, positioning the country as a key player in the Middle East and North Africa (MENA) region. With a young and tech-oriented population, growing investor interest, and strong government support, Egypt has become an attractive destination for entrepreneurs and investors alike.

In this Factsheet, we will explore the ecosystem of startups in the MENA region in 2024, with a focus on the Egyptian startups' performance in terms of investments, deals, and more.

• Startups in the MENA region secured $2.3 billion in investments in 2024, marking a 42% year-over-year (YoY) decline from the $4 billion raised in 2023. Notably, $1.5 billion of these investments were recorded in the second half (H2) of the year.
• The majority of funding came from disclosed deals, totaling $1.7 billion, followed by $331 million in debt financing. Mega deals in the regions attracted $257.5 million in investments.
• Despite the fall in total investment last year, the number of deals increased by 3.5% to 610 closed deals, compared to 583 deals in 2023.
• In 2024, the fintech sector maintained its leading position, accounting for 30% of total investments. Its strong investor appeal was reflected in the $700 million collectively raised across 119 fintech startups.
• The Gulf Cooperation Council (GCC) countries emerged as the highest funded last year. The UAE beat Saudi Arabia in this regard, attracting $1.1 billion in funding for 207 startups, which accounted for nearly half of the region's total funding. Saudi Arabia, which previously held the leading position, secured $700 million across 186 transactions.
• As for Egypt, it ranked third in the MENA region with investments worth $334 million across 84 deals, 45% lower than in 2023.
• Most of the capital invested in Egyptian startups came from local investors, while Saudi investors were the top foreign backers, followed by investors from the US.
• Investor interest in Egypt continues to favor the fintech sector, with $237 million allocated for 17 fintech startups. This trend aligns with Egypt’s vast market of 112 million people, which is still unlocking its fintech potential, especially following the activation of Apple Pay and Google Pay in late 2024.
• Logistics startups ranked second, securing $23.5 million across six deals, while e-commerce followed closely, attracting $22.5 million in funding across seven startups.

By: Amina Hussein

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