Dubai accounts for 57% of scaleup funding in the Middle East and North Africa, while the emirate is home to 39% of the region’s scaleups, according to a new report developed by Dubai Chamber of Digital Economy in cooperation with Mind the Bridge and Crunchbase.

The report, titled UAE Venture Outlook, examined key trends reshaping the maturing entrepreneurial ecosystem in the region, and highlighted the leading roles of the UAE and Dubai in attracting promising scaleups and tech giants.

The number of scaleups in MENA saw exponential growth in 2021, compared to 2020, as 587 scaleups were accounted for in the region by December 2021, compared to 139 in the previous year.

MENA scaleups have collectively attracted $9.1 billion, representing 0.12% of the region’s GDP. Data shows that a few countries are driving the effort of the MENA region to compete with the top global

tech ecosystems.

On a country level, the UAE accounted for the largest number of scaleups (251) which attracted the majority of funding in the region, or 59%, having raised $5.4 billion. Meanwhile, Dubai alone accounted for 57% of funding, as the emirate is home to a major of the region’s tech giants. Saudi Arabia came second as the kingdom is home to 106 scaleups (18.1% of total) that raised a total of $1.2 billion of growth funds. Egypt ranks third, accounting for 84 scaleups and $1.4B raised.

The report revealed that 26 MENA scaleups (4.4% of total) relocated their headquarters inside the region to boost their growth. The UAE was the preferred destination for relocation with 8 scaleups setting up in the country, followed by Saudi Arabia with 7, and Egypt (4). Additionally, a total of 41 scaleups opted to expand their footprint beyond MENA, primarily to the US (13), the UK (5), France (5), India (3), and Canada (2).