Logo Loading

News Detail

Investments in new start-ups Middle Eastern companies will exceed $ 1 billion in 2020

Investments in new start-ups Middle Eastern companies will exceed $ 1 billion in 2020

A total of 565 initial investments were made in 2019, with a total of businesses valued at $ 704 million, according to the new statistics of the Magnitt startup data platform.

Among the key trends expected in 2020, the report predicts that more than $ 1 billion will be invested in new businesses this year, in what it says will be a record year for departures, particularly in e-commerce and transportation.

The report also says that 2020 will also see greater international interest in “more established new businesses.”

Offers 2019
For the first time, Egypt represented the largest number of agreements in the region, 25 percent, while the UAE accounted for the majority (60 percent) of the funds.

“However, the landscape continues to evolve and other ecosystems are beginning to emerge,” the report adds. “Examples are Saudi Arabia, the fastest growing ecosystem in all MENA, which now ranks third in both number of agreements and total funding in the region.”

It was also discovered that 2019 was a record year for the departures, with 27 years, with the acquisition of Uber for $ 3.1 billion of Careem by Uber as the first unicorn exit in the region.

“We hope that our efforts have opened the way for other new technology companies to approach expansion throughout the Middle East, and that our agreement with Uber acts as a catalyst for greater investment in the ecosystem,” co-founder of Careem and El Experience director Magnus Olsson was cited in the report.

Venture Capital Sector
A total of 212 institutions invested in new companies based in MENA throughout the year, with institutional investors representing 25 percent of the total. Governments were also very active in the venture capital sector, the report said.

“Many governments in the region have been playing an active role in the growth of ecosystems conducive to entrepreneurs, including technical and financial support programs and political reforms,” ​​said Ali Abu Kumail, senior private sector specialist at the Bank World.

“There is a direct correlation between a favorable environment for companies and greater business activity,” he added.

Fintech held its first place in regards to the number of MENA agreements in 201 with 13 percent, while delivery and transportation accounted for the largest amount of any sector with 19 percent.

Related Posts

Compare

Enter your keyword