Startups in the Middle East and North Africa (MENA) region are witnessing a surge in investment, with fintech, cybersecurity, and artificial intelligence-driven ventures leading the way. Recent funding rounds and acquisitions highlight the region’s growing appeal to investors, particularly in Saudi Arabia, the UAE, and Egypt.
Cybersecurity and AI Investments on the Rise
Saudi Arabia-based cybersecurity firm CQR secured $3 million in a funding round led by Shorooq. Founded in 2023 by Naser Al-Dossary, CQR offers AI-driven cybersecurity solutions for businesses.
“Cyber threats in operational technology (OT) environments are evolving rapidly, and traditional security models are no longer enough,” said Al-Dossary.
The investment will help CQR expand operations and enhance its AI capabilities.
Saudi Arabia Boosts Startup Ecosystem
A new angel investment network, Al Madinah Angels, has been launched to support startups under the Al Madinah Ventures Initiatives. The network is a collaboration between Value Makers Studio, Madinah Chamber, and Numu Angels, aiming to help founders turn ideas into viable businesses.
This follows the launch of Al Madinah Ventures, a $10 million investment fund created by VMS in partnership with the Economic Development Center and the Madinah Chamber of Commerce.
Major Acquisitions in Logistics and Fintech
DHL eCommerce, the logistics arm of DHL Group, has acquired Saudi parcel logistics company AJEX. Founded in 2021 and backed by Ajlan & Bros Holding, AJEX provides express distribution, e-commerce, and freight solutions across Saudi Arabia, the UAE, Bahrain, the US, UK, Turkiye, South Africa, and China.
Meanwhile, UAE-based fintech Flow48 raised $69 million in a Series A round, combining debt and equity funding. Led by Breega, the round also saw participation from 212, Speedinvest, Daphni, Endeavor Catalyst, Evolution Ventures, and Plus VC.
Founded in 2022 by Idriss Al-Rifai, Flow48 provides SMEs with upfront financing by converting future revenues into immediate capital. The funds will help expand its operations in Saudi Arabia and the UAE.
AutoTech and AI-First Ventures See Growth
UK-based Pinewood.AI has acquired Seez, a UAE-founded automotive tech company, for $46.2 million in cash and shares. The company expects the share component to increase over the next three years.
Founded in 2016 by Tarek Kabrit and Andrew Kabrit, Seez offers software solutions for car dealerships and manufacturers to improve sales and customer experience.
In another AI-focused development, UAE-based venture builder Disrupt.com has pledged $100 million to support AI-first technology ventures. Founded by Aaqib Gadit, Uzair Gadit, and Umair Gadit, Disrupt.com has already invested over $40 million across various startups, with a notable exit valued at $350 million.
Expansion in Fintech and Customer Data Solutions
UAE-based Omnispay raised $1.5 million in seed funding, led by Mercatus Capital Pte. The startup provides SMEs with cash flow management solutions, including collections, payments, and lending services.
Similarly, Journify, a UAE-based SaaS provider, secured $4 million in funding from Silicon Badia, RZM, and other investors to expand its customer data solutions.
Egypt’s leading fintech firm Fawry invested $1.6 million in three startups—Virtual CFO, Dirac Systems, and Code Zone—as part of its strategy to enhance its Fawry Business ecosystem.
A report by Entlaq, in collaboration with the Netherlands Enterprise Agency and the Dutch Embassy in Egypt, revealed that Egypt’s fintech sector has grown 5.5 times in five years, driven by digital payments, lending, and B2B marketplaces.
Regional Fintech and Food Tech Developments
Egypt-based fintech Basata increased its stake in Jordanian e-payment firm MadfoatCom to 25%, aiming to boost digital financial inclusion in Jordan.
Meanwhile, Bahrain-based food tech startup Lola raised $1.3 million in pre-seed funding from Plus VC, Vision Ventures, and angel investors. Founded in 2023 by Othman Janahi, Lola specializes in customizable cake ordering services and plans to expand across the Gulf Cooperation Council (GCC) region.
Health Tech and Digital Payments Expansion
Qatar-based health tech startup Lillia secured a $1.7 million grant from the Qatar Research, Development and Innovation Council to expand its AI-powered health platform across MENA and Southeast Asia.
India-based Cashfree Payments raised $53 million to expand its digital payments presence in MENA, with a focus on the UAE. Backed by KRAFTON and Apis Partners, Cashfree processes $80 billion in annual transactions and plans to strengthen its foothold in the region.
A Promising Future for MENA Startups
The rapid influx of funding into MENA startups reflects a dynamic and evolving entrepreneurial landscape. With increased investments in AI, fintech, cybersecurity, and logistics, the region is set to become a global innovation hub.
For more updates on emerging startups and investments, visit Issue N Fact.
