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The startup ecosystem in the Middle East and Africa (MEA) region has undergone a transformative evolution, notably marked by a significant rise in venture capital (VC) funding over the past decade. In 2010, the region saw a modest 19 venture capital deals amounting to a total of $300 million, a figure which steadily increased in subsequent years. However, recent data indicates a concerning trend, with a 23% decline in overall capital investment observed in the past year. In 2023, MENA deals experienced a notable 34% decrease compared to the preceding year.

Specifically, in 2022, Egyptian companies secured $517 million through 160 financing deals, positioning Egypt as the third-highest recipient of funding in the Middle East, following the UAE with $1.19 billion and the Kingdom of Saudi Arabia with $987 million raised. Nevertheless, the first half of 2023 witnessed a slowdown in Egyptian companies' financing activities, with a 28% decrease compared to the latter half of 2022, despite still securing approximately $510 million in financing.

Beyond the challenges posed by fluctuating economic conditions and the highest interest rates in over two decades, which escalate borrowing expenses and intensify competition for venture capital investments, the regulatory environment stands out as a formidable obstacle confronting startup.