In H1 2023, the total start up investment (including debt) in the MENA region dropped by more than 21% from $2 billion in the previous year to a little under $1.6 billion. The decline was even more significant at 46% when considering equity investments only, indicating a slowdown in equity-based investing in the region.
Impact of global events
The consequences of the war in Ukraine, rise in interest rates, and global economic growth slowdown contributed to investor hesitancy, particularly in Q2 2022. Quarter-on-quarter investments witnessed a sharp decline of 56%, and deal count fell by 30%, with Q2 investments plummeting by a staggering 83% compared to the same period in 2021.