MAYS IBRAHIM (ABU DHABI)
The UAE has topped MAGNiTT’s inaugural Ecosystem Benchmarking Index, scoring 82.2 to lead 12 core MENA startup markets, ahead of Saudi Arabia at 74.2 and Egypt at 48.2.
The index shows a sharp divide between the region’s leading venture ecosystems and the rest, with Tunisia, the fourth-ranked market, scoring 24.1 — a gap of 24.1 points from Egypt.
The concentration is also reflected in funding activity. The UAE, Saudi Arabia and Egypt accounted for 91% of the $14.6 billion raised across the 12 markets between 2021 and 2025, while all active unicorns in MENA are based in these three markets.
MAGNiTT’s benchmarking index assesses markets across four areas: macroeconomic foundation, ecosystem scale & activity, exits & maturity and Investor landscape.
The framework is designed to assess the depth and development of venture ecosystems rather than focusing solely on funding raised in a single year.
The findings show that the region’s venture growth over the past five years has been uneven, with some markets developing deeper pools of capital, investors, growth-stage companies and exit opportunities than others.
The ranking also highlights a gap between broader economic strength and venture-market depth in several MENA markets.
The UAE and Saudi Arabia score strongly across both areas, while the relationship becomes less consistent further down the ranking.
Across the 12 markets, the correlation between macroeconomic strength and venture activity was 0.55.
Qatar, for example, ranked third on the Macroeconomic Foundation pillar but ninth on venture activity, scoring 6.4 on the macroeconomic measure compared with 0.8 across the venture pillars.
Kuwait showed a similar pattern, with a macroeconomic score of 4.9 compared with 0.5 across the venture pillars. Egypt, meanwhile, recorded stronger venture activity despite a lower macroeconomic score. The concentration becomes particularly pronounced at later stages of company development.
Nine of the 12 ecosystems recorded at least one Series B or later transaction between 2021 and 2025. However, the UAE and Saudi Arabia accounted for 87% of capital deployed at those stages.
Across the full five-year period, the UAE and Saudi Arabia alone accounted for 76% of capital raised in the 12 markets.
MAGNiTT said the figures suggest that the challenge facing emerging ecosystems is not simply generating occasional later-stage transactions, but developing a consistent pipeline of companies able to attract capital beyond the early stages.
International investor participation also closely follows the concentration of capital, with cross-border activity strongly associated with five-year funding levels.