Baghdad, Erbil join top 1,000 startup cities

Iraq has two cities among the world's top 1,000 startup hubs in the 2026 Global Startup Ecosystem Index compiled by StartupBlink: Baghdad and Erbil. The ranking — part of the annual index that maps and scores global startup activity — nonetheless leaves Iraq outside the top 100 national startup ecosystems, while flagging the country as an emerging market with notable growth potential.

Direct quote

"Iraq remained outside the world's top 100 startup ecosystems in the 2026 Global Startup Ecosystem Index published by StartupBlink, despite being identified as an emerging market with growth potential," the report states.

Context and details

The StartupBlink 2026 index places both Baghdad and Erbil within the top 1,000 cities worldwide for startup activity, a milestone that reflects increasing entrepreneurial engagement in Iraq despite ongoing structural and business-environment challenges. The report singles out the Middle East and North Africa (MENA) region for recording "strong growth in startup activity during 2026," and lists Iraq among regional markets that are now drawing attention for their potential to deepen innovation ecosystems.

Baghdad and Erbil's inclusion signals pockets of concentrated startup activity — founders, small investor networks, co-working spaces and nascent acceleration programmes — that together have pushed those cities onto the global map. While the index does not publish a single consolidated score for each city in the excerpt cited, being ranked among the top 1,000 typically reflects measurable metrics such as startup density, funding rounds, ecosystem support infrastructure and global connectedness.

The broader finding that Iraq remains outside the top 100 national ecosystems underscores persistent obstacles. These include limited access to early-stage and venture capital funding, regulatory and institutional barriers, infrastructure constraints and security-related investor caution. Startups in Baghdad and Erbil continue to operate in an environment where scaling beyond local markets can be difficult, even as domestic demand and specialist talent pools offer opportunities for sector-specific growth.

• Baghdad and Erbil: included among the world's top 1,000 startup cities in the 2026 index.
• Iraq: not ranked within the top 100 national startup ecosystems in 2026.
• MENA region: highlighted for "strong growth in startup activity during 2026."
• Index publisher: StartupBlink's Global Startup Ecosystem Index 2026.

Outlook

The inclusion of Baghdad and Erbil in the top 1,000 offers a platform for local stakeholders to push for stronger support systems — investor networks, regulatory reforms and programmes that can translate latent potential into sustainable, investable startups. As StartupBlink identifies Iraq as an emerging market within a region showing robust startup momentum, the coming years will be critical for converting recognition into tangible gains: increased funding flows, cross-border partnerships, and ecosystem services that help Baghdad- and Erbil-based startups grow beyond domestic markets.

For entrepreneurs and investors watching the region, the 2026 index sends a mixed but actionable message: progress is visible at the city level, but sustained national ecosystem development remains a work in progress.