Startup investments across the Middle East, Africa, and Gulf region recorded a notable decline of nearly $3.2 billion on an annual basis.
According to entArabi’s monthly investment report for August, total new investments exceeded $68.95 million across 12 deals involving startups, including 11 newly announced transactions.
The investments covered six key sectors: artificial intelligence, fintech, healthcare, edtech, e-commerce, and gaming.
Fintech Leads Investment Value
The fintech sector ranked first in terms of investment value, attracting $45 million through Qatar-based investments via Yuno, accounting for 65.26% of total monthly startup investments.
Artificial intelligence ranked second, attracting $8.75 million across five startups, most of which were based in the UAE. The sector accounted for 12.7% of total monthly investments.
Healthcare came third, with $7 million invested in a UAE-based company, representing 10.15% of total investments.
Edtech ranked fourth, with $3 million in Saudi investment through AILA, representing 4.35% of total monthly investments. E-commerce followed with $1.7 million, while gaming startups attracted $1.45 million.
Qatar Takes the Lead
During the month, Qatar ranked first in terms of startup investment value, driven by a single fintech transaction involving Yuno.
The company’s $45 million funding round accounted for 65.26% of total monthly startup investments, giving Qatar the largest share of investment value during the period.
UAE Ranks Second
The UAE ranked second, with total investments estimated at $14.25 million, representing 20.66% of total monthly investment activity.
The country recorded six transactions, including five publicly announced deals, spanning several sectors:
- Artificial intelligence
- Healthcare
- Fintech
Saudi Arabia Stands Out in Edtech
Saudi Arabia recorded three investment deals worth $6.2 million, representing approximately 9% of total monthly investments.
The deals covered three major sectors:
- E-commerce
- Artificial intelligence
- Edtech
Saudi Arabia stood out during the month by accounting for the region’s entire edtech investment activity, with $3 million invested in AILA.
Jordan, meanwhile, focused its investment activity during the month on the gaming sector through Arab Therapy, with investments totaling $1.45 million.
Key Deals
- Remedium Network closed a $1.5 million Pre-Seed funding round led by Kaltaire Investments to support the company’s expansion in technology and sustainability solutions in the Saudi market.
- Raff, a Saudi platform that connects consumer brands with retailers, raised $1.7 million in a Pre-Seed round led by Vision Ventures, with participation from 500 Global, Palm VC, Ajyal Group, and other investors. The funding will support the company’s expansion plans across the Gulf.
- AILA, a Saudi edtech company, raised $3 million in a Pre-Seed round to develop AI-powered educational solutions. The round was led by Rua Growth Fund, with participation from Jo Academy, Bunat VC, and Fikr Ventures.
- HeyBreez, an AI-focused company, raised $2.5 million in a Seed round led by Lunara Partners, with participation from Jabbar Group, DASH Ventures, and a number of founders and angel investors. The funding will support the company’s expansion plans.
- XSquare, a UAE-based B2B payments company, raised an undisclosed amount in a Pre-Seed round led by Raed Ventures, with participation from AngelSpark, 500 Global, and Oraseya Capital. The funding is aimed at supporting the company’s regional expansion, particularly its entry into the Saudi market.
- Tax Star, a UAE-based provider of AI-powered tax software, raised $1.75 million in a Seed round. The funding will be used to strengthen its products and expand commercially, capitalizing on the UAE’s accelerating shift toward e-invoicing and digital tax compliance before expanding into other Gulf markets.
- Yuno closed a $45 million Series B funding round to support AI-enhanced payment solutions. The round was led by Global PayTech Ventures, with participation from Andreessen Horowitz, Tiger Global, QuantumLight Capital, Monashees, Kaszek, and Endeavor Catalyst.
- Arab Therapy, a Jordanian digital healthcare platform, closed a $2 million Pre-Series A round to expand its operations in Saudi Arabia and other Middle Eastern markets. The round was led by Jordanian Ventures, with participation from Anara Impact Fund from the MENA region and Saudi-based Value Makers Studio (VMS).
- Majestic Mind Games closed a $1.45 million investment round led by Mirak Capital and Impact46 to support the development of the gaming and digital content industry in Saudi Arabia.
- Cobi, a UAE-based AI company, raised $1 million in a Pre-Seed funding round led by Lunara Partners, with participation from Plug and Play, Annex Investments, and Spring.
- Longivium, a UAE-based healthcare company, closed a $7 million funding round. The identities of the participating investors were not disclosed.
- Raym, a company developing AI solutions for operational sites, closed a Seed funding round worth more than $2 million. The round was led by Sidra Investment, with participation from Athlah Investment and Unity Invest Partners, alongside a group of angel investors.
Read the article in
