Investment Outpour is Fueling MENA’s Edtech Boom

Today, technology has penetrated almost every aspect of people’s lives. And one of its most meaningful uses is in education.  

In MENA, the edtech market is expected to grow to $5,487.71 million by 2028, driven by investments in digital learning solutions and increasing demand for learning technologies. The industry attracted a record investment of $16.3 billion in 2018, and $18.7 billion in 2019, as noted by Marmore MENA Intelligence. Combined, these figures are higher than all the investments that flowed into the industry from 1998 to 2017. Between 2016 and 2019, edtech deals substantially jumped from four to more than 30. In 2020, edtech companies in the region received $30 million.  

According to Global Ventures, the amount of investment poured into edtech is poised to increase steadily in the coming years. 

In April, UAE-based school operator Taaleem told AGBI that it intensified its investments in edtech, doubling the amount over the last five years. Now, it utilizes about 3,000 edtech platforms across its ecosystem.  

This year saw a flurry of investments in edtech from both regional and international investors. In March, Saudi-based Noon Academy raised $41 million in a Series B funding round, while in May, US-based edtech VC Rethink Education invested in Aanaab, a Saudi-based professional development platform for teachers.  

“The region's young, tech-savvy population and growing emphasis on economic diversification have created a fertile ground for edtech innovation,” says Hannan Moti, co-founder and CEO of iCodejr.

In July, UAE’s Verbatica, an edtech platform dedicated to learning English and Arabic, received $700,000 from angel investors. The company is planning a second round in November when it expects to raise an additional $2 million.  

Hannan Moti, co-founder and CEO of iCodejr. Courtesy of Hannan Moti. 

Investments have also been pouring in from the GCC to North Africa, particularly Egypt, which has become a hub for edtechs in the region. Earlier this year, the one-on-one tutoring platform Orcas was acquired by Saudi-Kuwaiti edtech Baims. Cairo-based edtech platform Akhdar, which offers audio educational resources in Arabic, and pre-university support platform OBM Education both received investment from Saudi Arabia’s Value Maker Studio (VMS) to expand their footprint in the kingdom.  

Perhaps the biggest indicator of the sector’s growth is Abu Dhabi’s Alef Education, which became the first edtech company to go public in the UAE, raising $515 million from an IPO earlier this year. The platform aims to improve access to education and enhance the learning experience by leveraging Artificial Intelligence (AI).  

Investors on the lookout 

Egypt’s Nahdet Misr has invested in or incubated 76 startups since 2017 through EdVentures, the company’s venture capital (VC) arm and the first VC in the Middle East to specialize in edtech. In July, EdVentures announced a $400,000 investment in Egypt-based startup El Kheta, which offers reinforcement lessons, exercises, and tests based on the country’s new curricula.  

“The edtech sector has emerged as one of the top five most-funded sectors in MENA region,” Maged Harby, general manager of EdVentures, tells Inc. Arabia.  

So what makes an edtech attractive to investors? For EdVentures, it’s all about innovation and personalization. 

“Successful edtech startups in MENA are offering personalized learning experiences. Successful ones are also focusing on addressing specific challenges in the region, such as improving academic performance and overall student success using new tools like AI,” says Harby.  

“There’s a growing demand for content creation, customization, and localization services, reflecting the diverse cultural and linguistic landscape of the Middle East. Additionally, the growth of the edtech sector is spurring innovation in areas like AR/VR, coding, AI, and career planning technologies,” he adds. 

Maged Harby, general manager of EdVentures. Courtesy of Maged Harby. 

Harby says that EdVentures is on the lookout for “startups leveraging artificial intelligence for personalized learning or using augmented and virtual reality to enhance understanding of complex subjects.” 

Governments are supporting the sector 

Apart from private entities supporting edtech, intensified government support and efforts to diversify the economy are contributing to the sector’s growth. 

Yousef Alhusaini, co-founder and CEO of Baims. Courtesy of Yousef Alhusaini. 

“Many GCC countries are prioritizing education as part of their national development plans, offering strong support for digital transformation in the sector. This includes investments in technology infrastructure, policy reforms, and initiatives to encourage private sector participation,” says Yousef Alhusaini, co-founder and CEO of Baims.

“As GCC countries diversify their economies away from oil dependency, there is a growing focus on developing knowledge-based economies. Education plays a critical role in this shift, making edtech a strategic investment area,” Alhusaini adds.