Iraq secured just $100,000 in startup investment last month. This amount placed it at the bottom among Middle East and North Africa countries. The region, by comparison, saw a total of $289 million raised across 44 startup deals. This marks a strong 25% rise from the previous month and a slight 2% increase over the same time last year.
While Iraq lags behind, other nations in the region are attracting far more startup capital. Egypt led with $125 million in investments, driven by a surge in fintech and health tech ventures. The United Arab Emirates followed with $86.7 million, benefiting from its supportive business laws and digital infrastructure. Saudi Arabia came in third, collecting $68.8 million in startup funding across several sectors.
Meanwhile, smaller players such as Qatar and Tunisia managed to each attract $1 million. Oman also outperformed Iraq, bringing in $250,000 in startup investments. These numbers show a wide gap between Iraq and its neighbors, both large and small.
The phrase limited startup investment in Iraq highlights the country’s ongoing challenge in building an entrepreneurial economy. Experts believe that Iraq’s economic system, which heavily depends on oil and government spending, leaves little room for private sector innovation. Without a strong foundation for startups, Iraq continues to miss out on a rapidly growing regional market.
In addition, the lack of venture capital firms, incubators, and business-friendly regulations makes Iraq a tough place to launch and scale startups. While talent exists, entrepreneurs often face obstacles such as limited funding, high risks, and weak support systems.
At the same time, neighboring countries continue to reform policies, invest in digital ecosystems, and attract global venture capital. These improvements allow them to grow faster and draw the attention of international investors. In contrast, Iraq’s ecosystem remains slow and underdeveloped.
Despite these challenges, some local entrepreneurs remain hopeful. They call for greater government support, better legal protections, and increased funding options. They argue that even small steps could lead to more success stories.
If Iraq aims to compete in the regional startup space, it must shift away from its oil dependency and invest in its innovation economy. Until then, the trend of limited startup investment in Iraq is likely to continue.