Venture capital dealmaking in the Middle East is likely to fall back to pre-pandemic levels in 2023 since activity has dropped significantly in the region in recent months.

So far this year, $3.2 billion has been invested across 580 deals, according to PitchBook data, with Q2 notching the lowest quarterly deal count since Q3 2018.

Increasing urbanization and strong government support from sovereign wealth funds have led to a sharp increase in VC dealmaking in recent years. But at its current pace, the Middle East is likely to fall short of last year’s figures of 1,414 rounds worth a total of $14.5 billion.

Israel remains, by far, the region’s largest VC hub, accounting for nearly half of all 2023 rounds and 65.6% of value. But some of the smaller ecosystems have seen an uptick in activity, including Bahrain and Qatar—which have both already surpassed 2022’s full-year deal count.

Here’s a look at the Middle East’s venture ecosystem, which highlights key trends across dealmaking, fundraising and exits.