CLOSING THE GAP

Amal Dokhan, Managing Partner at 500 Global MENA, has spent over a decade shaping the region's vibrant startup ecosystem. Now, she's driving efforts to bridge funding gaps, scale startups, and solidify MENA's position as a global hub for innovation and entrepreneurship.

- BY JAMILA GANDHI

MENA's startup ecosystem is navigating a dynamic phase, with venture capital activity revealing both challenges and opportunities. In the first nine months of 2024, MENA's venture capital (VC) market recorded $1.3 billion across 352 deals, reflecting a 13% drop in funding compared to the previous year, according to MAGNITT. Despite this dip, funding for non-MEGA deals—those under $100 million—grew by 7%, signaling sustained interest in early-stage startups and a vote of confidence in the region's entrepreneurial potential.

Leading this charge is Saudi Arabia, which accounted for 39% of total funding and is emerging as a standout player in the region. Key deals like Salla's $130 million funding round highlight the kingdom's growing appeal, driven by regulatory reforms, government-led initiatives, and increasing international interest. “The Saudi market is becoming a very deep economic market with strong infrastructure enabling businesses to grow,” says Riyadh-based Amal Dokhan, Managing Partner at 500 Global MENA.

The kingdom's robust infrastructure, forward-thinking policies, and growing consumer base make it an attractive destination for startups. Dokhan describes it as a market where businesses can “plug in and do their business,” thanks to the ease of accessing resources like know-your-customer platforms and government-backed systems. However, despite these advances, challenges remain. High startup costs and a shortage of affordable technical talent are barriers that many founders still face. “We need more models of exits to encourage new money to come in,” Dokhan highlights, emphasizing the need for more success stories to further incentivize investment.