Startups in Middle East double fundraising to defy slowdown

For the third consecutive H1, Saudi Arabia leads regional VC fundraising

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Startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a slowdown in venture capital investment in emerging markets brought on by economic uncertainty and investor caution.

About $1.35 billion in VC funding was funnelled to companies in the Middle East from January through June, led by Saudi Arabia and the UAE, according to data platform Magnitt.

Middle East activity was anchored by government support, new funds and mega deals for companies including Saudi Arabia's newest unicorn, quick-delivery firm Ninja. Investors also showed increased interest in Series A and B funding rounds that help companies start to scale their growth.

"Investor appetite, specifically in the GCC, is growing to later-stage companies compared to what we've seen in the last couple of years," said Philip Bahoshy, chief executive officer and founder of Magnitt.

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