Shafaq News – Baghdad

Iraq ranked fifth among the most investment-attractive countries in the Middle East and North Africa (MENA) region in August 2025, according to a recent report by Wamda, a platform monitoring startup activity across the region.

The report indicated a sharp decline in startup funding during August, with 47 startups in the MENA region raising a total of $337.5 million.

This marks a 57% drop compared to the $783 million secured in July, though it still reflects a 74% increase from the same period last year.

Wamda attributed the decrease to a market correction following several high-value deals in July. Investment activity in August was largely concentrated in Saudi Arabia and the United Arab Emirates, with growing interest in property technology (Proptech) and construction technology (Contech).

Saudi Arabia led the region, attracting $166 million across 19 deals, followed by the UAE with $154 million invested in 11 startups.

Egypt, usually among the top three destinations for startup investment, continued its decline for a second consecutive month, raising $14.7 million across eight deals.

Iraq, which held third place in July, fell to fifth in August with a single deal valued at $1.5 million. Morocco remained within the top four investment destinations in the region.

Earlier, Iraqi Prime Minister Mohammed Shia al-Sudani said government efforts to enhance the business environment had significantly boosted foreign investment. Speaking at an event marking the partnership between the International Finance Corporation and the Iraqi government, he noted that Arab and foreign investments had reached $100 billion in licensed projects and companies already in the implementation phase.