Creative collage picture young crazy guy addicted money wealth dollar sign increase profit earnings caricature literature page background.
While markets around the world reel from economic uncertainty, MENA’s startup sky is glittering bright; flush with funds, growing consumerism, a young population, and pro-entrepreneurship policies, the region is becoming a key player in the global innovation economy.
Over the past decade, the MENA region has experienced rapid economic growth. Governments have introduced initiatives that promote entrepreneurship, reduce barriers to business, and provide access to funding. In cities like Dubai, Riyadh, Cairo, and Beirut, the startup ecosystem has flourished, fuelled by a wave of tech-savvy youth eager to build the next big thing.
According to recent data, more than 60% of the population in many MENA countries is under the age of 30, creating a dynamic and motivated workforce that is well-versed in digital tools and global trends. This demographic and a burgeoning middle class are not just passive consumers; they are actively participating in creating the digital future of their countries.
A major contributor to MENA’s startup ecosystem has been favourable government policies with tax incentives. The Dubai Future Foundation and Saudi Arabia’s Vision 2030, with a strong emphasis on innovation and entrepreneurship, act as cornerstones of the region’s economic growth.
Countries like Bahrain and the UAE have enacted startup-friendly laws, such as easier business registration processes, a more streamlined visa system, and regulations tailored to the needs of new ventures. Many countries have accelerator programmes, grants, and incubators that give entrepreneurs access to both funding and mentorship.
According to Wamda, the MENA e-commerce market is valued at a staggering USD 50 billion, with a 30% surge in 2024
International investors, particularly from Silicon Valley, have taken an active interest in MENA-based startups due to the region’s growth potential, the emergence of tech hubs, and the ability to scale businesses across the region. MAGNiTT, a platform tracking MENA’s startup ecosystem and venture capital investments, estimated that the MENA region secured USD 1.3 billion in funding in 2024.
Saudi Arabia, the UAE, and Egypt are among the top countries favoured for high-value investments. MENA’s large diaspora in North America and Europe too has opened up global networks that foster collaboration and investment.
E-commerce is one of the fastest-growing sectors in MENA, driven by increasing internet penetration and changing consumer behaviours. According to Wamda, the MENA e-commerce market is valued at a staggering USD 50 billion, with a 30% surge in 2024.
Amazon’s USD 580 million acquisition in 2017 marked its entry into the Middle East and set the ball rolling for e-commerce proliferation in the region. In 2023, Noon, an e-commerce platform, paid USD 335.2 million for the Emaar Properties-owned fashion portal Namshi, signalling the growing regional collaboration for sharing e-commerce profits.
The fintech sector has seen explosive growth across MENA, driven by an underserved market, a young tech-savvy population, and high mobile penetration. The region’s banking system remains relatively traditional, leaving room for fintech companies to innovate in areas like digital payments, online lending, and mobile wallets.
Prominent fintech start-ups include PayTabs, a payment processing platform based in Saudi Arabia, and Tabby, a buy-now-pay-later platform from the UAE. Digital assets are gaining popularity. Coin MENA and Ziina are a few examples that are changing the fintech landscape.
MENA’s healthcare infrastructure seeks modernisation and innovation. The pandemic underscored the need for digital health solutions, such as telemedicine platforms, health tracking apps, and online pharmacy services.
Vezeeta, an Egyptian start-up founded in 2012, has raised approximately USD 63 million to date and is known among the leading health tech companies in the middle-east region. The platform allows users to book doctor appointments, order prescriptions, and access a range of health services.
Jordan-based telehealth platform Altibbi partnered with UNICEF to empower youth with access to free health services in the region and has raised USD 53 million in funding to date. AI and hyper-personalisation are shaping health tech services.
UNESCO estimates 100 million school-age students in MENA, making it a favourable market for edtech services and products. The pandemic accelerated the shift toward digital learning, creating opportunities for online courses, tutoring, and interactive educational tools.
One prominent edtech startup is Abwaab, an online learning platform in Jordan that has received over USD 20 million in funding, signalling strong investor confidence in the growth potential of the edtech market in MENA.
With its strategic location as a global trade hub, MENA has seen significant growth in logistics and supply chain technology. Startups are focusing on optimising last-mile delivery, managing inventory, and improving operational efficiencies. Innovators like Wize are accelerating this transformation by providing intelligent energy solutions that enhance the efficiency and sustainability of logistics infrastructure in the UAE.
Artificial intelligence will play a key role in modernizing the sector with a focus on sustainability and regional connectivity.
MAGNiTT, a platform tracking MENA's startup ecosystem and venture capital investments, estimated that the MENA region secured USD 1.3 billion in funding in 2024
While the overall scenario remains rosy at the moment, some challenges persist. The entrepreneurship ecosystem seeks long-term stability for business growth, and MENA remains a politically volatile region. Some regions are still plagued by extreme economic inequality, so starting and scaling business ideas for creating impact remains a pipe dream. Cultural and social norms, too, can create invisible barriers.
It is heartening to note that LEAP 2025, the annual tech event held in Saudi Arabia, attracted USD 14.9 billion in investments in AI, cloud, fintech, and digital products. This is a strong indicator that despite the systemic challenges, tech entrepreneurship is on the rise, and MENA is a good space to hedge future bets on.
Worku Lemma has worked his way up from a bank clerk to the boardroom. Capturing…
Information and Communication Technology specialist and Business Consultant Valentine Amadi speaks on the challenges faced…
Little did Szilvia Faragó know that buying her first home in Dubai would lead her…
Yogendra Jagger, Founder of Virtue Cloud & IT Solutions, celebrates reaching a milestone of 500+…
Syed Mubashshir Ali, the founder of Krypsm is determined in making cryptocurrency investing more accessible…
Manish Bharti, a seasoned techie turned global sales leader, investor, and chairperson of Innovsol, on…
This website uses cookies.