The amount raised by start-ups in the Middle East and Africa has doubled so far this year, compared with the same period in 2020, as investors tap into the growth of the region's fast growing digital economy.
The region's start-ups raised $2.1 billion since January 2021, which is also twice the annual funding raised over the past three years, according to management consultancy RedSeer.
“The digital economy has been driving this upsurge, with players across sectors and stages of evolution closing strong funding rounds,” RedSeer said in a report.
The consultancy also expects the size of the region's consumer digital economy to more than double by 2023, led by the online retail and travel sectors.
The growth of the digital economy has picked up pace as a result of the Covid-19 pandemic, with more people turning to the internet and shunning brick-and-mortar shops.
Online sales in the Middle East and North Africa are set to triple to $28.5bn next year, from $8.3bn in 2017, according to research by Bain & Company and Google.
FinTech and food services recorded the strongest investor backing over this period.
“FinTech had led the funding this year with a 20 per cent to 30 per cent contribution, both in terms of the amount of funding and the number of funding rounds,” said Sandeep Ganediwalla, RedSeer’s managing partner in the Middle East and North Africa.
In addition to FoodTech, software-as-a-service, or SaaS, companies also registered an increase in the number of early stage deals.
"As the overall digital maturity across sectors increases, software or Saas players will become an important enabler to build capabilities across the value chain,” Mr Ganediwalla said.
Other emerging sectors that could offer a strong medium- to long-term growth potential to investors include education technology, health technology and electronic retail.
Series B, or the second round of funding, accounted for the lion's share, or 40 per cent, of the total fund-raising by companies in value terms in the period from January to August.
Meanwhile, early stage funding and series A deals continued to dominate in terms of the number of deals closed over the past three to four years. Large investments were also made in series B-plus rounds and debt funding in 2021.
There was strong growth in average deal value across stages, indicating a more sizeable funding inflow that will enable robust growth over the medium term, according to the India-based research house.
“The average ticket sizes have increased significantly across all stages of investments. This is reflective of the increased confidence investors have in coming players and would auger well to provide a stronger growth runway for these platforms,” the report said.
Meanwhile, the average time between funding rounds is declining, indicating that players are scaling up fast, with strong and timely investor backing.
The average time between subsequent rounds has decreased consistently, falling below the one-year mark in 2021, Redseer said.
Investors are also reinvesting in companies that faced headwinds due to the Covid-19 pandemic, to ensure they come out stronger.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Gifts exchanged
- King Charles - replica of President Eisenhower Sword
- Queen Camilla - Tiffany & Co vintage 18-carat gold, diamond and ruby flower brooch
- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
RESULTS
1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)
2pm Handicap (TB) Dh 84,000 (D) 1,400m
Winner Karaginsky, Tadhg O’Shea, Satish Seemar.
2.30pm Maiden (TB) Dh 60,000 (D) 1,200m
Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.
3pm Conditions (TB) Dh 100,000 (D) 1,950m
Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.
3.30pm Handicap (TB) Dh 76,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
4pm Maiden (TB) Dh 60,000 (D) 1,600m
Winner Bladesmith, Tadhg O’Shea, Satish Seemar.
4.30pm Handicap (TB) Dh 68,000 (D) 1,000m
Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.
Netherlands v UAE, Twenty20 International series
Saturday, August 3 - First T20i, Amstelveen
Monday, August 5 – Second T20i, Amstelveen
Tuesday, August 6 – Third T20i, Voorburg
Thursday, August 8 – Fourth T20i, Vooryburg
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New Zealand 57-0 South Africa
Tries: Rieko Ioane, Nehe Milner-Skudder (2), Scott Barrett, Brodie Retallick, Ofa Tu'ungfasi, Lima Sopoaga, Codie Taylor. Conversions: Beauden Barrett (7). Penalty: Beauden Barrett
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Spider-Man: No Way Home
Director: Jon Watts
Stars: Tom Holland, Zendaya, Jacob Batalon
Rating:*****
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
