Growing Tensions in Gaza Create Uncertainty for Startups
The escalating tensions in Gaza have created uncertainty for startups. Local and international investors have reduced their financing in the first half of the year. Investments have decreased by 46% compared to the previous year, from $1.6 billion to $873 million, excluding loan financing. However, the second quarter of 2024 shows a slight improvement, with $453 million raised by 98 startups, a 5% increase from the previous quarter but a 9% decrease from the previous year.
UAE Dominates Startup Financing
The United Arab Emirates (UAE) continues to dominate startup financing, with $455.5 million raised by 91 startups in the first half of 2024, a decrease from the $604 million raised in the previous year. Saudi Arabia follows with $300 million, compared to $554 million in 2023.
Egypt Faces Economic Crisis
In contrast, Egypt is experiencing a severe economic crisis despite investments from the Gulf Cooperation Council (GCC). The national debt represents 96.4% of GDP, and the inflation rate is at 32.5%. Furthermore, daily power outages of up to six hours have had a devastating impact on Egyptian startups, with only 33 of them raising $83 million in the first half, an 80% decrease from the previous year.
Morocco Shows Encouraging Progress
Morocco is showing encouraging progress, with 6 startups raising $12.5 million during the same period.
