Erbil has maintained its position as Iraq’s second-strongest startup ecosystem. The city also remains among the world’s top 1,000 startup cities, according to the Startup Blink Global Startup Ecosystem Index 2026. The ranking highlights Erbil’s growing role in innovation and entrepreneurship.
The report ranked Erbil 932nd globally. It also kept its place as Iraq’s second-ranked startup city for the second year in a row. In the Middle East, Erbil ranked 29th. The result shows the city’s increasing influence despite rising competition from other emerging startup hubs.
According to the report, Erbil is home to 11 startups. These companies represent nearly one-third of all startups operating in Iraq. The city’s startup ecosystem recorded annual growth of 21.9 percent in 2025. This figure reflects steady progress in business development and entrepreneurial activity.
Investment figures also showed strong confidence in Erbil’s business environment. Startup funding in the city exceeded $75.98 million during the past decade. This amount represents almost 41 percent of all startup investment secured across Iraq. The figures highlight Erbil’s ability to attract investors and innovative companies.
Financial technology, or fintech, emerged as Erbil’s leading startup sector. Three startups operate in this industry. They represent 27 percent of the city’s startup ecosystem. The sector is gaining attention as digital transformation accelerates across Iraq and the wider Middle East.
Erbil’s strong performance comes as the Kurdistan Regional Government works to diversify the economy. Authorities also aim to encourage private-sector growth and create opportunities for young entrepreneurs.
The city has developed a vibrant entrepreneurial community. Universities, innovation programs, technology initiatives, and private-sector partnerships support this community. These efforts have created a stronger culture of innovation among young professionals and business founders.
Digital services, fintech solutions, and e-commerce platforms continue to expand. Technology-driven businesses are also growing rapidly. As a result, Erbil is strengthening its reputation as one of Iraq’s most dynamic innovation centers. Its strong investment record and sustained growth suggest that the city will play an even larger role in Iraq’s digital economy in the coming years.
