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UAE Tech Startup Funding Plunges 65% in 2023

To date, the number of investment rounds in 2023 has decreased by 21 percent when compared to the same period in 2022.

By Inc.Arabia Staff
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Funding for tech firms in the UAE shed by 65 percent this year, Arabian Business reported, citing an analysis by the market intelligence platform Tracxn.[1]

Financing for IT companies in the UAE in 2022 was almost unchanged from 2021, however in 2023 there was a notable decline in financing.

This industry has received $223 million in seed funding thus far in 2023, which is 7 percent less than the $241 million raised in 2022.

The three highest-performing subsectors in this industry in 2023 were FinTech, Environment Tech, and Blockchain Technology.

In addition, the UAE tech space has received $638 million in funding to date, a decrease of 65 percent from the $1.83 billion raised in the same period in 2022, making 2023 the least financed year since 2020, according to Tracxn’s Geo Annual Report: UAE Tech 2023

To date, the number of investment rounds in 2023 has decreased by 21 percent when compared to the same period in 2022.

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