Yousef Al Arabi (Abu Dhabi)
The United Arab Emirates topped the Middle East countries in terms of the number and value of bold investment deals “venture capital” during the first half of this year, through the implementation of 85 deals worth 2.56 billion dirhams “$699 million,” according to the company “Magnite” specialized in monitoring investments. and acquisitions by start-ups in the Middle East and North Africa. According to the data of the “Adventure Investment” report for the first half issued by the company, which was reviewed by the “Union”, the Kingdom of Saudi Arabia came in second place with a value of deals amounting to 584 million dollars through 79, while Egypt came in third place with deals worth 307 million dollars through 78 deals.
The Kingdom of Bahrain came in fourth place, with deals worth 116 million dollars, through 10 deals, while Tunisia ranked fifth, with deals worth 36 million dollars, through 15 deals. Venture capital is one of the most popular financing methods that entrepreneurs may rely on as they seek to establish a new start-up, which often has promising growth potential.
continuous growth
And in an important sign of the continued flow of deals in the UAE venture capital market, the country’s startups collected 10% more deals compared to the first half of 2021 to maintain the number one position there.
While the UAE maintains its ranking, Saudi Arabia has moved up one position to become the second most traded VC market in the MENA region, followed by Egypt by one deal.
Financial technology “Fintech” took the lead in terms of daring investment deals in the UAE, with deals worth 858 million dirhams ($234 million), through 28 deals, registering a growth of 249% in value and 65% in number compared to the first half of 2021. The agricultural sector came in second place, with deals worth 664.2 million dirhams ($181 million), an increase of 1.636% compared to the first half of last year, followed by the fashion sector, with a value of 183.5 million dirhams ($50 million), and health care, which recorded a similar value. Logistics worth 146.8 million dirhams «40 million dollars».
Mega deal
A “Mega” round, with a value of more than $100 million, which amounted to 664 million dirhams ($181 million) from Pure Harvest, pushed the agricultural sector to the second place in terms of financing in the UAE during the first half of 2022. “Altibbi” of 161.48 million dirhams ($44 million) is the highest funding round ever raised by a healthcare startup in the Middle East and North Africa region, pushing the sector to fourth place by total funding.
perfect environment
In his opening speech to the report, Ahmed Al Naqbi, CEO of Emirates Development Bank, said: “With the recognition that today’s business landscape is changing at a faster pace in a highly interconnected world, the United Arab Emirates, over the past decade, has made great strides in business development, through The attractive environment that allows the huge talents across the country to take advantage of opportunities is easier than ever before. He added that among the many advantages enjoyed by startups is easy access to various financing channels and a favorable legislative environment, which contributes to building one of the most attractive business environments for emerging companies, noting that the country provides an ideal environment for small and medium companies.
He stressed that the Emirates Development Bank believes in the need for companies, businessmen, and small and medium-sized companies to have access to the financing they need to expand to help small and medium-sized companies access to financing and full banking services.
He pointed out that the bank is constantly exploring new initiatives and opportunities to stimulate business growth, enhance the culture of entrepreneurship, and provide financing solutions to enhance the business environment for entrepreneurial minds across the UAE.