Middle East Venture Funding Plunges 22% in H1: Summer Test Ahead

Private capital data platform Magnitt reported that Middle East venture funding fell 22% in the first half of the year, with the actual deal count plunging 41%. Many of the deals were signed before the US-Israel attacks on Iran. CEO Philip Bahoshy told Abeer Abu Omar on Horizons Middle East and Africa that the real test will hit this summer.

■Investors are reassessing capital allocation amid rising geopolitical risks in the region.

■According to Magnitt, only 127 venture deals were closed in the first half of 2024, down from 215 in the same period last year.

■Investment outflows from non-energy and non-financial sectors, particularly technology and healthcare, were notable.

Gökberk Uçar notes that while this funding decline won't directly impact air logistics supply chains in the short term, slower growth in tech firms across the Middle East could indirectly reduce cargo volumes. In a region already strained by Iran-GCC trade dynamics, airlines may face increased operational costs. Bahoshy's 'real test' warning underscores whether investors will tolerate risks beyond the second-year milestone.