Dubai ranked world’s third most startup-friendly city in new global index

Dubai has been named the third most startup-friendly city in the world, according to a new global index that measures how well cities support entrepreneurs and early-stage businesses.

The Startup Friendly Cities Index 2026, published by global platform Multipolitan, placed Dubai behind only San Francisco and Zurich, and ahead of cities including London, Paris and New York.

The ranking reflects Dubai’s growing reputation as a hub for entrepreneurship, driven by fast company set-up processes, digital infrastructure and policies designed to attract international talent.

How the index works

The index assessed startup eco-systems across 60 countries before ranking 28 cities using five key measures: startup activity, digital connectivity, young talent, quality of life and business agility.

Dubai scored particularly strongly on regulatory efficiency and speed of incorporation. According to the report, founders can often establish a business in around a week, faster than in many established global hubs.

Multipolitan said the emirate’s combination of low friction, competitive tax structures and a cosmopolitan environment has helped it close the gap with traditional Western innovation centres.

Talent and quality of life

The index also examined how attractive cities are to young professionals and founders, combining data on education, cost of living, safety, healthcare and purchasing power.

On this combined measure of talent and quality of life, Dubai outperformed cities such as San Francisco, Tokyo, Paris, London and New York, reflecting its ability to retain globally mobile professionals.

Scaling remains the next challenge

Despite its strong showing, the report notes that Dubai still lags behind more mature ecosystems in terms of unicorn numbers and overall venture capital depth.

However, Multipolitan said cities like Dubai are advancing rapidly as founders increasingly prioritise ease of doing business and access to international talent.

“The geography of entrepreneurship is shifting,” said Nirbhay Handa, chief executive and co-founder of Multipolitan. “Cities that reduce friction for founders are becoming more competitive globally.”

A changing global landscape

Singapore ranked fourth in the index, with Seoul seventh, highlighting what the report describes as an eastward shift in innovation power. London and Paris placed eighth and tenth respectively, with the index citing higher costs and bureaucracy as ongoing challenges.

Multipolitan said Dubai’s digital governance, residency programmes and financial zones, including DIFC and ADGM, are helping to redefine what a modern startup hub looks like.

Top 10 Startup-Friendly Cities 2026

1. San Francisco

2. Zurich

3. Dubai

4. Singapore

5. New York City

6. Los Angeles

7. Seoul

8. London

9. Hong Kong

10. Paris