Image: Overall UAE Tech Snapshot (Data considered from Jan 01, 2024 till Dec 31, 2024)
Tracxn, a leading global SaaS-based market intelligence platform, has released its UAE Tech Annual Report 2024. Based on Tracxn’s extensive database, the report provides insights into the UAE Tech space.
Image: Y-o-Y Funding Trends (Note: Funding includes only Equity Funding. It excludes Debt, Grant, Post-IPO and ICO funding.)
In 2024, UAE tech startups raised $644 million in funding, representing a 41% decline from the $1.1 billion secured in 2023 and 68.59% drop compared to the $2.05 billion raised in 2022.
Image: Y-o-Y Stage-wise Funding Trends (Note: Seed includes Seed, Angel rounds. Early Stage includes Series A,B rounds. Late Stage includes Series C+, PE, Pre-IPO rounds)
Stage-wise Investment Trends
Late-Stage Funding: Late-stage investments dropped to $104 million in 2024, marking a 78.93% decrease from $495 million in 2023.
Seed-Stage Funding: Seed-stage investments dropped by 22%, falling to $229 million in 2024 from $294 million in 2023.
Early-Stage Funding: Early-stage funding experienced a 0.81% marginal decline, totaling $311 million in 2024, down from $313 million in 2023.
Sectoral Performance
Top-performing sectors in 2024 included Enterprise Applications, FinTech, and Retail:
Enterprise Applications: Funding rose by 199% in 2024 relative to 2023, and dropped 42.6% compared to 2022.
FinTech: Funding decreased by 57.6% compared to 2023 and drop of 56.76% compared to 2022.
Retail: Funding dropped by 48.5% compared to 2023 but rose by 25.39% compared to 2022.
Top cities leading the landscape
Dubai-based tech firms accounted for 82.37% of all funding raised by UAE tech companies.
Abu Dhabi followed behind, contributing 17.6% of the total funding.
Leading Investors
500 Global, Wamda Capital and Middle East Venture Partners emerged as the top investors in the UAE tech ecosystem, actively supporting startups across various stages.
Mergers & Acquisitions
The UAE tech ecosystem recorded 18 acquisitions in 2024, a drop from 19 in 2023. Notable deals include:
NEOPAY’s acquisition by DgPays and Arcapita for $385M, YouGotAGift’s acquisition by giftee and Bazaara’s acquisition by Best Kept Shared are some of the acquisitions that occurred in 2024.
This data underscores the evolving dynamics of the UAE tech ecosystem, reflecting both growth opportunities and challenges across different funding stages, sectors, and regions.
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