MENA over the past 5 years: Which industries define the ecosystem?
Despite the challenges faced, 2020 saw many rising companies in FinTech, Healthcare, E-Commerce, and Delivery & Logistics industries.
Over the past 5 years, the MENA region has evolved to become a blessing for startup founders across various industries with the opportunities for innovation being endless and the growth of talent. Regardless of the industry, the MENA region has been driving towards a digital transformation that has been impacted by the COVID-19 pandemic as the need for smart digital solutions continues to increase. While investors rushed to de-risk their investments as a result of the pandemic, the top 7 industries saw increased investment, especially E-commerce, Food & Beverage, and Healthcare.
To get a comprehensive overview of the Top 7 industry trends in the MENA region, download MAGNiTT’s 2021 MENA Industry Venture Report.
The following four points sum up the key findings of the report, allowing for a clear comprehension of the 5-year trend analysis of venture evolution in the MENA region within the top 7 industries:
1. When looking at the deal share evolution of the top 7 industries in the MENA region, the report shows us a gradual upward slope over the 5-year period which inclines that new companies were able to come into these sectors
FinTech, E-Commerce, and Delivery & Logistics industries displayed a continuous growth starting from 2016 up to 2020, whereas the Food & Beverage industry remained stable and only increased in 2020.
2. The 2021 Venture Industry Performance report shows an increase in investment size compared to the 5 year period, with 40% of investments made in MENA-based startups within the bracket of $500K-$3M
Delivery & Logistics followed by Food & Beverage and E-Commerce industries demonstrate the superiority of deals made within $500K-$3M, while the Transport industry displayed the greatest deals within the $10M-$100M investments.
3. Different countries in the MENA region witnessed the majority of their deals in different industries indicating their diverse needs
UAE continued to hold its status as the center for Fintech, while Egypt saw an increase in deals in the Healthcare and Ecommerce industries. UAE and Egypt also saw a focus on Delivery & Logistics and the Transport industry that is parallel to the pandemic induced lifestyle. This was noticed in Bahrain and Tunisia as well.
4. The top 5 deals comprise over half the concentration of disclosed deals in 2020 in all industries apart from Education
With over 70% of the funding allocated to mega deals in the Healthcare, Delivery & Logistics, Food & Beverage, and Transport industry, 2020 witnesses uneven allocation of funds across the remainder of the deals. However, the education industry saw 54% of their deals in non-mega rounds indicating a booming industry with various innovative ventures.
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