UAE Venture Capital Investments Grow in Q2 2024
This increase was driven by six key transactions that accounted for 60% of the quarter’s total funding.
Venture capital investments in the UAE rose by 113% year on year (YoY) in the second quarter (Q2) of 2024, according to Magnitt’s 1H 2024 MENA Investor Ranking. This increase was driven by six key transactions that accounted for 60% of the quarter’s total funding.[1]
Despite a 31% decline in transaction volumes, the UAE experienced an 11% YoY rise in the number of transactions, surpassing other top five MENA countries.
The UAE also led a 75% increase in foreign investments in the MENA startup ecosystem, with a 2.4x YoY rise in international venture capital investors during the first half (H1) of 2024. MENA was the only region among emerging venture markets to see an increase in investor numbers during this period.
In H1 2024, the UAE and Saudi Arabia accounted for 68% of MENA-based venture investors, contributing to an 8% YoY growth in local investors across the region. Three UAE investors were among the top 10 in the region by transaction count. Plus VC was the most active Emirati investor, ranking fourth regionally with six early-stage investments, followed by AngelSpark with five and Dubai Future District Fund with four investments.
Venture capital investments made up 53% of the regional startup ecosystem’s investor base in the first half of 2024, up from 47% in 2022. The share of investment companies increased to 19%, while corporate investors' participation declined, potentially affecting funding for late-stage startups.
Additionally, accelerator investments dropped to their lowest level in a decade, comprising 9% of the investor base, down from 15% in the first half of 2023, indicating a shift toward direct investments.