A 2023 report showed that Morocco is one of the leading investors in the MENA startup scene reaching $18 million in investments through 30 deals, positioning it favorably compared to other countries in the region, according to Wamda, a platform of programs and networks that aims to accelerate entrepreneurship ecosystems across MENA.
While Morocco thrived, some neighboring countries, such as Algeria, Egypt, and Tunisia, experienced a decline in startup investments. Morocco, along with Oman and Saudi Arabia, achieved a notable rise in the value of investment and fundraising operations.
The MENA region saw a modest 1.7 percent year-on-year growth in startup fundraising, reaching $4 billion in 2023.
The report suggested a more challenging reality beneath this growth, highlighting a decrease of approximately 35 percent in the total amount raised by startups when factoring out debt financing.
The report identified debt financing as a significant contributor, tripling to $1.77 billion in 2023. Nevertheless, even with this boost, the total funds startups raised after deducting the debt amounted to $2.25 billion.
Saudi Arabia, the United Arab Emirates, and Egypt maintained their positions as the most active markets, contributing to 98 percent of total investments and 75.6 percent of transactions. The report also noted a 64 percent decrease in investments in startups founded by women in 2023.
“Financial Technology” (Fintech) dominated sectors, attracting 58 percent of total funding, including debt. “Super Apps” ranked second with a significant investment value of $543 million, despite a limited number of deals. The “Food Technology” sector also performed well, securing $222 million through 46 deals.
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