Funding into UAE Tech startups plunges 65% in 2023

Funding into UAE Tech startups plunges 65% in 2023

Highlights:

- Total funding into UAE Tech startups dropped 65% to $638M in 2023, compared with $1.83B in 2022

- Only company reported a $100M+ funding round in 2023

- In 2023, 16 acquisitions were recorded, as against 18 in 2022

- No new Unicorns emerged in this space in 2023

- Dubai took the lead in terms of city-wise funding

- FinTech, Environment Tech and Blockchain Technology were the top-performing sectors in 2023

UAE: Tracxn, a leading global SaaS-based market intelligence platform, has released its Geo Annual Report: UAE Tech 2023. The report, based on Tracxn’s extensive database, provides insights into the UAE Tech space.

The UAE is the fourth largest economy in the MENA region and is ranked seventh globally in terms of per capita income. The startup ecosystem in UAE witnessed its highest funding in 2022 after which there has been a steady decline in funding in this region.

The UAE Tech space witnessed total funding of $638 million in 2023 to date, a decline of 65% compared with $1.83 billion raised in the same period in 2022, making 2023 the least funded year since 2020. The number of funding rounds in 2023 to date also fell 21% compared with the same period in 2022. Funding