The Q3 2023 UAE Venture Investment Premium report looks at the state of the country's venture capital ecosystem and its evolution within the context of ongoing economic challenges. To learn more about the data, contact our sales team.
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In the UAE for 2023, GDP growth is expected to reach 3.4%, faring better than the broader GCC region, which is forecasted to grow at a slower rate of 1.4%. This is mainly driven by non-hydrocarbon GDP growth, at approximately 4% in 2023 and beyond. Non-oil growth in the country will be fueled by the development and diversification of the economy through initiatives in tourism, construction, and real estate. Inflation is on an upward trajectory, with monthly inflation steadily increasing from 0.24% month-over-month in July to 0.86% month-over-month in September 2023. This rise is driven by high energy prices, imported inflation, and a growing workforce, leading to a year-over-year inflation rate of 3.81% in September, the highest level observed since March 2023. Simultaneously, during Q3, interest rates reached record highs of 5.4%. This move continues to align with the Federal Reserve’s monetary policy, which maintains the peg of the Emirates currency to the US Dollar.
Within the venture capital landscape, UAE saw a QoQ uptick in Q3 with $124M invested across 30 deals, however, this was the lowest Q3 for the country since Q3’20. Deals also experienced a 15%, however, the year-on-year data revealed a contraction of 30% in deal count. Comparatively, the UAE led its MENA peers in deals, recording 13 deals ahead of Saudi Arabia.
Pro Tip: Subscribers can access the Platform's Advanced Analytics tools to make customized cuts by country, industry, stage, and many more spanning MENA, Africa, South East Asia, Turkey, and Pakistan: Contact our sales team to learn more.
What’s in the Report?
The report highlights the performance of the UAE VC ecosystem in the past nine months of the year. It includes,
Fund Announcements & Ecosystem Updates
Funding & Deal Evolution
Deal Share by Round Size
Valuation Evolution by Early Stage
Funding & Deal Evolution by Country
Funding & Deal Evolution by Industry
If you'd like to access the report, contact [email protected].
Things to Consider in Q4
Looking at the final quarter, funding rounds exceeding $100M have the potential to exert a substantial influence on the VC funding environment, especially in a year with constrained funding, such as 2023. Interestingly, the UAE hasn't concluded any MEGA deals in the first three quarters of 2023, unlike the two instances recorded in the prior year. Should the final quarter witness significant MEGA deal activity, it could have a positive impact on the overall funding landscape in the UAE and build momentum as we approach 2024.
What is in the report?
The latest quarterly report offers strategic insights into the performance of the UAE VC ecosystem. This report covers a 5-year analysis of UAE's venture funding evolution, with a specific focus on the country comparison and industry performance in 2023. You will get access to precious information such as:
UAE Venture Funding Evolution: Get a detailed analysis of the past five years, highlighting the growth and development of venture funding in the country with a focus on performance in Q3 2023.
Key rankings such as the Top 20 investors, Top 20 funding rounds, Top 10 last exits, and 5-Year exit evolution of UAE.
Who is it for?
Whether you’re a private investor, a VC, an investment company, a CVC, or working in corporate, this report gives an overview of the ecosystem and caters to a diverse audience including any curious minds who want to use the yearly, quarterly and monthly charts in this report to track investment activity.
You can also see in which country and industry the investment activity focused in terms of deals and capital deployed, allowing you to leverage insights and make wise choices.
The report can also be used by consultants looking to identify technology innovation trends and who will find it valuable to look at the evolution of M&A activity and concentration of acquirers/acquired startups.
Last but not least, government entities searching for investment opportunities will also find valuable information to make informed decisions.
Where is this information from?
The report was 100% created using data from MAGNiTT. MAGNiTT is the leading VC-verified data platform and offers a comprehensive directory of technology innovation trends. Our unique SaaS solution includes investment directories listing startup venture funding across the Middle East, Africa, Pakistan, Turkey, and now Singapore. By using MAGNiTT, you will also get access to market sizing tools to visualize investment growth and trends across various industries, geographies, and stages, as well as comparison tools for benchmarking geographies, industries, and investor performance. Furthermore, MAGNiTT offers exit comparisons by examining mergers and acquisitions.