Rabat – Morocco confirmed it remains standing as one of the most attractive destinations for startups in the MENA region in August, even as investment across the area contracted sharply.
According to Wamda, startup funding in the region fell 57% in August, dropping to $337.5 million from $783 million in July.
Egypt and Iraq usually dominate the startup market but have seen a steep decline. Egypt attracted only $14.7 million through eight deals, while Iraq slipped to fifth place with a single $1.5 million transaction.
Morocco, by contrast, remains in the top four with two deals totaling $200,000 in August. Wamda attributes this performance to a maturing ecosystem, strengthened by government initiatives, expanding technology hubs, and increasingly skilled founders.
The Moroccan market shows particular promise in sectors with high monetization potential.
Fintech, proptech, and digital services lead local activity, reflecting a strategic focus on sustainable, scalable business models.
Across the MENA region, proptech startups reigned in $96 million from four deals. Fintech followed with $68.3 million across five deals, indicating recovery after several months of slowdown.
Construction tech also performed well, as seen in Mycrane’s $50 million raise. Gaming gained attention as Saudi investors placed $12.6 million in digital content startups, reflecting Riyadh’s ambition to build a regional hub for gaming and creative industries.
Saudi Arabia and the UAE remain one of the largest recipients of funding despite the overall decline.
Saudi startups raised $166 million from 19 deals, and UAE startups mobilized $154 million through 11 deals. Late-stage investments dominated, with Series B rounds totaling $112 million and Series A rounds adding $82 million.
Debt financing accounted for $60 million, while seed-stage investment fell to $22 million across 31 startups.
B2B models regained the lead, raising $180 million from 32 startups compared with $116.9 million for nine B2C projects. Investors favored businesses with clear, scalable revenue models.
The report also revealed an unusual spike in female-led startup funding. While male-led ventures continued to dominate, raising $263.5 million across 41 deals, two female-led startups, Gathern and Phys in Saudi Arabia, secured a combined $72.3 million.
Mixed-gender founding teams raised $1.6 million. Though the overall gender gap remains wide, these deals represent a notable milestone for women entrepreneurs in the region, and signal growing recognition of their potential.
Morocco’s resilience in this challenging environment depicts the country’s growing capacity to foster sustainable, high-potential startups even as regional funding faces volatility.
