MENA startup funding soars 206% to $355m in July

Despite the broader uncertainties, the number of deals held steady at 38, indicating a stable investment environment, Wamda’s monthly report showed. File
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Updated 13 August 2024
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MENA startup funding soars 206% to $355m in July

  • Egypt emerged as the leading destination for venture capital, securing $185 million through seven deals
  • UAE followed with $96 million invested across 12 startups

CAIRO: Venture capital investments in the Middle East and North Africa reached $355 million in July, marking a 206 percent increase from June and a 260 percent rise year on year, according to recent data.

This growth highlights the region’s resilience in the face of global economic challenges and rising geopolitical tensions, including potential conflicts involving Israel and Iran.

Despite the broader uncertainties, the number of deals held steady at 38, indicating a stable investment environment, Wamda’s monthly report showed.

Anticipation of a US Federal Reserve interest rate cut in September is likely fueling renewed optimism, potentially enhancing market liquidity and investment appeal.

In July, startup debt financing made up less than 1 percent of total investments, suggesting a shift toward venture capital as a primary funding source and a recovery from earlier investment slumps.

Egypt emerged as the leading destination for venture capital, securing $185 million through seven deals, a substantial leap from June’s $15 million across four deals. This surge was driven largely by a single $157.5 million investment in fintech startup MNT-Halan.

The UAE followed with $96 million invested across 12 startups, while Saudi Arabia saw a sharp decline to $31 million from seven deals, falling behind Oman, where startup 44.01 raised $37 million.

Fintech continued to attract the most investment, drawing $181 million across 16 startups. Web 3.0 providers followed with $85 million in funding for two startups. The deeptech and cleantech sectors also saw notable investments, driven by significant funding rounds for 44.01 and Intelmatix.

While e-commerce did not lead in total investment, it remained competitive in deal volume, with six startups raising $15.7 million.

Overall, these figures underscore the MENA region’s strong position and growing appeal in the global startup ecosystem despite ongoing economic and geopolitical challenges.

In July, early-stage investments were the dominant force in the MENA funding landscape. Seed-stage startups attracted $96 million through eight deals, while Series A rounds garnered $91.7 million across an equal number of deals. Pre-seed investments were comparatively modest, with just $1.8 million raised by five startups.

The business-to-business model continued to be the primary focus for investors, drawing $345 million spread across 27 startups. In contrast, business-to-consumer startups secured nearly $8 million, and business-to-business-to-consumer companies raised the remaining funds.

Female entrepreneurship faced ongoing challenges, with only two female-led startups securing $270,000 in July. Mixed-gender co-founded startups performed somewhat better, attracting $20.5 million, while male-led startups received the majority of the funding.

The month also witnessed several notable mergers and acquisitions, particularly within the UAE. Significant transactions included BitOasis’s acquisition by India’s CoinDCX, Power League Gaming’s purchase by Muller & Phipps Middle East Group, and Lableb’s acquisition of Majarra.

Typically, investment activity slows during the summer months due to vacations and the hot weather. However, the funding momentum in the region is expected to pick up again in the last quarter of the year, a period when most deals are usually closed.

In an interview with Arab News, Philip Bahoshy, CEO of venture data platform MAGNiTT, shared optimistic predictions for the latter half of the year.

“If this coincides with post US elections, potential interest rates coming down, we can expect to have a very strong finish to the year in terms of both potential IPO (initial public offering) listings, late-stage investments, and continuous development at the early stage of the funnel,” Bahoshy said.

He added: “The second half of the year historically always tends to be stronger than the first, which is positive not only for Saudi Arabia, but the wider MENA ecosystem.”

Bahoshy anticipated a significant increase in startup investments in Saudi Arabia in the last quarter of the year, following a pattern similar to 2023.

He emphasized the long-term nature of these investments, stating, “A lot of initiatives are being done in Saudi Arabia to continue to attract not only startups but investors to the Kingdom.”

Bahoshy further noted: “These are long tail investments into the activity that’s happening in venture, especially with many funds looking to set up as well as the importance of highlighting talent acquisition to the Kingdom.”


Saudi Arabia’s Red Sea dolphins signal a thriving marine environment

Updated 30 January 2026
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Saudi Arabia’s Red Sea dolphins signal a thriving marine environment

  • Long-term monitoring aims to turn observations into data for conservation

JEDDAH: The waters of the Red Sea along Saudi Arabia’s coast have become a vibrant natural stage, with pods of dolphins appearing near shorelines and along shipping lanes. These captivating sightings are emerging as a positive indicator for the health of the Red Sea’s marine ecosystem.

Saudi Arabia’s Red Sea waters are a thriving sanctuary for marine life, hosting 12 species of dolphins and small whales, according to the National Center for Wildlife.

Nearshore and reef-adjacent waters are frequently visited by the Indo-Pacific bottlenose dolphin (Tursiops aduncus) and the spinner dolphin (Stenella longirostris). Common bottlenose dolphins (Tursiops truncatus) are also present, but tend to favor deeper offshore waters.

Beyond these familiar faces, the Red Sea is home to a wider array of cetaceans that are less often documented. These include the Indo-Pacific humpback dolphin (Sousa plumbea), which inhabits shallow coastal areas, the pantropical spotted dolphin (Stenella attenuata), Risso’s dolphin (Grampus griseus), and larger relatives such as the false killer whale (Pseudorca crassidens), which may be more common than sightings suggest. Rare visitors like killer whales (Orcinus orca) and offshore species such as the rough-toothed dolphin (Steno bredanensis), striped dolphin (Stenella coeruleoalba), long-beaked common dolphin (Delphinus capensis), and short-finned pilot whale (Globicephala macrorhynchus) are known to appear sporadically but require documented evidence for confirmation.

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Pods of dolphins are regularly spotted near shorelines and shipping lanes along Saudi Arabia’s Red Sea coast.

Reef-enclosed lagoons and sheltered nearshore waters serve as resting and social hubs for dolphins.

Human activities, including fisheries, coastal development and vessel traffic, can disrupt dolphin behavior.

Field identification is made easier by distinct physical traits. Indo-Pacific bottlenose dolphins are smaller and more slender than their common bottlenose cousins, while spinner dolphins are streamlined with a pronounced beak. Risso’s dolphins are stockier with blunt heads, often marked with noticeable scars. Indo-Pacific humpback dolphins remain close to shallow, sometimes murky, shorelines, making them challenging to document without dedicated surveys.

Researchers at KAUST emphasized the importance of ongoing conservation to maintain the Red Sea’s ecological balance. Research scientist Jesse Cochran told Arab News: “For Saudi waters, the biggest challenge is that we still don’t have the kind of long-term, standardized monitoring needed to estimate population sizes or trends confidently. We have important observations and some targeted surveys, but the baseline is still developing.”

Another research scientist, Royale Hardenstine, highlighted the need for broader coordination: “What we need most right now is connectivity across efforts. There are good observations in specific project areas, but without a shared framework and a broader network, it’s hard to turn those observations into coast-wide inferences about residency, movements, or trends.”

Dolphins are frequently seen in reef-enclosed lagoons and sheltered nearshore waters, where they rest and socialize. These locations are often predictable, as reef structures reduce wave action and currents, creating calm conditions favorable to dolphin behavior.

Christy Judd, a Ph.D. student at KAUST, noted: “Some reef-bounded lagoons appear to be used repeatedly as resting areas. These places matter because they offer shelter and calm conditions, not because they’re automatically the highest biodiversity sites.”

While dolphins sometimes feed and socialize near coral reefs, Prof. Michael Berumen explained that their ecological range extends well beyond reef systems. Dolphin activity in the Red Sea spans a wide seascape that includes open waters, channels, continental shelf edges, and coastal zones.

He said that reefs shape resting areas and can concentrate prey. Experts, however, caution against linking dolphin presence directly to reef health.

Hardenstine elaborated: “Where dolphins and reefs overlap, it’s often because reef structures create sheltered lagoons and predictable resting areas.”

Dolphin group sizes in the Red Sea vary by species and activity. Bottlenose and spinner dolphins may form large aggregations exceeding 100 individuals during social interactions or when moving through food-rich waters.

In contrast, Indo-Pacific humpback dolphins are more often observed in small groups. Mixed-species associations also occur: Indo-Pacific humpback dolphins may interact with bottlenose dolphins, and pantropical spotted dolphins frequently accompany spinner dolphins.

From left: Dr. Michael Berumen, Christy Judd, Royale Hardenstine and Jesse Cochran. (KAUST)

Berumen described these social dynamics: “Dolphin societies are typically dynamic, with groups that form and re-form over time (often described as ‘fission-fusion’ social structure). Individuals associate for feeding, travel, resting, and social interactions, and alliances can form, particularly in some bottlenose populations.”

Judd added a field perspective: “Calves are usually integrated into the pod’s normal behavior, but groups with calves can be more cautious, especially around disturbance.”

Seasonal patterns in dolphin distribution remain unclear. Hardenstine noted: “In Saudi waters seasonal patterns, if they exist, are not yet well-resolved because sighting data are often influenced by survey effort, weather, and where people are looking.”

Dolphins respond to prey availability, water temperature, and oceanographic features such as currents and productive zones. Cochran cautioned: “We expect environment and prey to influence where dolphins are seen, but data limitations mean we should treat seasonal conclusions as provisional until long-term monitoring is in place.”

Human activities pose additional pressures. Dolphins face risks from fisheries, occasional bycatch, coastal development, tourism, vessel traffic, and underwater noise. While the Red Sea does not experience the intensive industrial fishing seen in other regions, interactions with fisheries can displace dolphins or disrupt the marine food web. Vessel traffic can disturb resting behavior and increase stress.

Berumen explained: “Vessels can affect dolphin behavior by causing avoidance of certain areas, interrupting resting behavior, altering movement patterns, and increasing stress, particularly in areas where dolphins rest in sheltered lagoons.”

Hardenstine added: “While data related to these impacts in the Red Sea are sparse, some anthropogenic pressures are increasing throughout the region. This is exactly when collaborative monitoring and scientifically informed mitigation become most valuable.”

KAUST researchers study dolphins as part of broader ecosystem and megafauna monitoring, combining reef surveys, opportunistic sightings, and targeted research. The university collaborates closely with the Saudi Arabia’s National Center for Wildlife to develop a national marine mammal stranding network, assisting with identification, sampling, and necropsies when needed. Collaborative efforts with NCW and OceanX have also supported aerial surveys documenting Red Sea megafauna.

Cochran emphasized the goal: “The most responsible next step is building long-term monitoring that is coordinated between stakeholders nationally, so that observations turn into defensible data that can identify trends and guide conservation actions or policy.”