Despite local and global economic challenges, Egypt witnessed increased VC funding for the fifth consecutive year. In 2022, it raised $517 million, up 3% from 2021, according to Magnitt’s Egypt Venture Investment Report.

The most funded market was the UAE, receiving $1.19 billion, followed by Saudi Arabia attracting $987 million during the same period.

Fintech, e-commerce, and transport and logistics were the most funded sectors, raising $217 million, $148 million, and $62 million respectively. Together, they accounted for 83% of total VC funding for 2022.

While Egypt ranked third in terms of funding in the MENA region, it came in first in the number of deals, which amounted to 160.

Like other countries across the region, Egypt also witnessed a record number of exits last year. According to the same report, Egypt saw a total of 17 exits, more than double the amount recorded in 2021.

Some of the leading mergers and acquisitions (M&A) that took place last year include Egyptian Company for Cosmetics (ECC) acquiring a majority stake in online beauty platform Source Beauty; Saudi wholesale marketplace Sary acquiring Egyptian e-commerce platform Mowarrid; and US-based therapy provider Astute Imaging acquiring Egypt-based healthtech startup DilenyTech, amongst others.