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UAE tech startup budget witnesses sharp decline in 2023

The UAE tech startup budget has reached $638m this year, sinking from $1.83m on record in 2022.

The UAE tech startup budget has reached $638m this year, sinking from $1.83m on record in 2022.

Market Analysis Overview

Tracxn, a prominent market intelligence platform, has unveiled its Geo Annual Report: UAE Tech 2023, highlighting a considerable downturn in funding for tech startups within the UAE.

Decline in Funding Trends

The report reveals a substantial 65 percent decrease in funding for UAE tech startups in 2023. This decline starkly contrasts with the robust funding levels witnessed in 2022, marking 2023 as the least funded year since 2020. 

Total funding for tech ventures in the UAE amounted to $638 million in 2023, contrasting significantly with the $1.83 billion raised in the same period of 2022.

Reduced Funding Rounds

Moreover, the number of funding rounds recorded in 2023 also witnessed a notable decline of 21 percent compared to the corresponding period in 2022. The trend indicates a significant shift from the previous year’s momentum in startup investment within the UAE’s tech landscape.

Comparative Analysis

While the funding landscape for UAE tech startups in 2022 showed similarities to the funding levels in 2021, the year 2023 has experienced a pronounced decrease in investment interest. 

This decline presents a notable contrast to the preceding years, indicating a considerable shift in investor sentiment or market dynamics affecting tech startup funding within the region.

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