The State Of Play -And The Road Ahead- For Startups And Investment In The GCC – Entrepreneur

The State Of Play -And The Road Ahead- For Startups And Investment In The GCC – Entrepreneur

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

The Gulf Cooperation Council (GCC) has earned a reputation for being friendly to startups. Last year, just two of the countries in the region -unsurprisingly, the UAE and Saudi Arabia- drew in nearly 60% of the US$3.2 billion that startups across the broader Middle East and North Africa managed to raise. From agritech to fintech, it would appear that the GCC is the place to be.And yet, we cannot ignore the falloff in investor activity. We live in a connected world, and international markets are in the middle of a capital crunch. Investment in the region this year has been muted, and it is reasonable to assume that 2024 will prove to not have been as fund-furious as 2023.So, where do we stand? Below, we explore the reasons for this to set the stage for what comes next. How will startups go about funding themselves in 2024? Advice to follow, but first, let us examine the trends that made 2023 a rare "off" year for the GCC startup community.

1. Risk-takers retreatThere has been a mood swing among the venture capitalists (VCs). In