Tel Aviv, Dubai, Cairo, Riyadh, and Abu Dhabi are the top five emerging startup ecosystems in the Middle East and North Africa (MENA) region.
According to the Global Startup Ecosystem Report (GSER) 2024, Tel Aviv is the only MENA ecosystem ranking in the Top 40 and remains the region’s leading ecosystem, globally moving up one place to No 4 (tied with Los Angeles).
The Israeli high-tech sector is the engine of the nation’s economy, accounting for 18 per cent of its gross domestic product, 48 per cent of exports, and 11 per cent of its workforce.
Despite a globally challenging year for funding, startups in Israel raised $7 billion in 2023, a return to the levels of investment from 2018 and 2019, before the relative anomalies of peak years in 2020 to 2022.
Dubai creates five unicorns
However, Dubai scored 10 out of 10 in the funding, measuring innovation through early-stage funding and investor’s activity. It has five unicorns, one of 19 emerging ecosystems with four or more unicorns in the last 10 years.
Cairo moved up in the Emerging Ecosystems Ranking from last year’s 51-60 range to the 41-50 range. It is the top MENA Ecosystem in bang for buck, measuring the amount of runway tech startups acquire, on average, from a VC round.
Riyadh and Abu Dhabi both moved up in the emerging ranking – Riyadh from last year’s 61-70 range to 51-60 and Abu Dhabi from the 81–90 range to the 61-70 range.
Abu Dhabi ranks second in MENA Ecosystem in performance, measuring the size and performance of an ecosystem based on the accumulated tech startup value created from exits and funding.
The emergence of Hub71, Abu Dhabi’s global tech ecosystem, has grown to accommodate over 315 startups that have collectively raised $1.5 billion in funds since its 2019 inception.
Hub71 applications doubled in 2023, with 38 onboarded startups and 77 new commercial deals worth $134 million.
Supporting transformative ventures
“Our technology ambitions are being realised by Abu Dhabi’s underlying commitment to supporting transformative ventures that are making an impact globally while advancing our Falcon Economy for the long-term prosperity of the Emirate” Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED) and Chairman of Hub71, said.
Muscat created $313 million in ecosystem value between July 01, 2021, to December 31,2023. Ecosystem value is a measure of economic impact, calculated as the value of exits and startup valuations.
Sharjah created $424 million in ecosystem value between July 01, 2021, to December 31,2023.
It is the ranked fifth in MENA ecosystem in bang for buck, measuring the amount of runway tech startups acquire, on average, from a VC round.
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