Middle East and Africa Venture Capital Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

MEA Venture Capital Market Analysis

The MEA Venture Capital Market size in terms of investment value is expected to grow from USD 3.53 billion in 2024 to USD 5.73 billion by 2029, at a CAGR of 10.20% during the forecast period (2024-2029).

The outbreak of the Covid-19 pandemic had a significant impact on the global economy, including the venture capital market in the Middle East and Africa (MEA) region. The pandemic caused a slowdown in venture capital investment activity in the first half of the previous year, as investors adopted a more cautious approach due to the economic uncertainty caused by the pandemic. However, investment activity began to pick up in the year's second half, with several notable investments made in the region. The pandemic accelerated the adoption of digital technologies and e-commerce platforms, increasing investment in start-ups and early-stage companies operating in these sectors. While the COVID-19 pandemic presented significant challenges to the MEA venture capital market, it also created new opportunities for investment in sectors that are seeing increased demand due to the pandemic.

With ongoing development and high investor confidence, Middle East and Africa-based start-ups saw a record investment of just over USD 1 billion in the previous year, a 13% increase year over year. It was largely due to huge investments in start-ups such as EMPG (USD 150 million), Kitopi (USD 60 million), and Vezeeta (USD 40 million) in the first half of the year. Historically, the UAE, Egypt, and the Kingdom of Saudi Arabia were the most established innovation centers in the Middle East and Africa, accounting for 65% of agreements in the previous year. Other nations accounted for 25% of all investors in Middle East and Africa-based start-ups in the previous year 2020, demonstrating a strong foreign interest in the region's start-ups.

The Middle East and African start-up scene is similarly capturing attention. It is due to the number of quality entrepreneurs and the significant acquisitions of regional E-Commerce leader souq.com by Amazon (for almost USD 600 million) and the rideshare platform Careem by Uber for over USD 3 billion. Countries in the Gulf leaned forward in regulatory environments to welcome innovative talent and streamline the rule of law to support FinTech and more. The Kingdom of Saudi Arabia's Vision 2030 strategic policy positions start-ups and SMEs as key factors in the kingdom's economic prosperity. The International Finance Corporation (IFC), a member of the World Bank Group, announced it was partnering with the Egyptian FinTech Association on the IFC'S Fintech Acceleration Programme to support innovation and entrepreneurship in the country.

MEA Venture Capital Market Trends

The United Arab Emirates Attracts Higher Investments in the region

MEA Venture Capital Industry Segmentation

Venture capital (VC) is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. Venture capital generally comes from well-off investors, investment banks, and any other financial institutions. The report on the Middle East and Africa Venture Capital market comprehensively evaluates market segmentation, product categories, existing market trends, market dynamics shifts, and growth opportunities. Middle East and Africa Venture Capital Markets are segmented by type (local investors and international investors), industry (real estate, financial services, food & beverage, healthcare, transport, and logistics, IT & ITeS, education, and Other Industries (Energy, etc.)), and Country (United Arab Emirates, Saudi Arabia, Egypt, and rest of Middle East and Africa). The report offers Market size and forecasts for the Middle East and Africa Venture Capital Market in terms of transaction volume and/or revenue (USD) for all the above segments.