Globally, the United Arab Emirates maintains its top spot in entrepreneurship for a fourth consecutive year.
The United Arab Emirates (UAE) has solidified its position as the world's leading entrepreneurial hub, maintaining its dominance in 11 out of 13 key indicators among high-income nations, according to the latest Global Entrepreneurship Monitor (GEM) Report for 2024-2025.
Alia bint Abdullah Al Mazrouei, the Minister of State for Entrepreneurship in the UAE, attributed the country's repeated success to its visionary leadership and its commitment to fostering an integrated ecosystem for startups and Small and Medium-sized Enterprises (SMEs).
The UAE's comprehensive ecosystem excels in areas such as access to financing, regulatory ease, entrepreneurship education, and a culturally supportive environment for enterprise creation.
One of the key factors that set the UAE apart is its strong institutional support. The country integrates entrepreneurship into education and fosters a pro-enterprise culture, nurturing the growth of youth-driven startups.
The UAE's dynamic startup ecosystems and SME frameworks have also been instrumental in turning ambitions into reality. With a high percentage of young workers eager to launch businesses, the UAE is well-positioned to support the growth of these ventures.
The UAE's strategic approach also leverages advanced technologies such as AI and digital commerce platforms to ensure entrepreneurs can succeed in an evolving job market. Reports like PwC’s Future Ready Mena have highlighted the critical role of these technologies in the modern business landscape.
The UAE's success is further underpinned by high startup survival rates, especially when supported by experienced mentorship. The country promotes mentorship to strengthen SME sustainability and ensure the long-term success of new businesses.
Regulatory and institutional mechanisms in the UAE also simplify business setup and lower barriers, ensuring ease of doing business for startups and SMEs. This ease of doing business, coupled with business-friendly policies, robust government initiatives, and a competitive investment climate, has contributed to the UAE's entrepreneurial success.
The UAE's ambition is to reach one million SMEs by 2031, as part of its "We the UAE 2031" vision. To achieve this, the country has invested $8.7 billion in SME growth through the Projects of the 50 initiative.
Foreigners can now fully own companies in the UAE, further boosting the country's appeal as a global hub for entrepreneurship. This move has led to record-breaking foreign direct investment levels in 2023.
Encouragingly, 80% of new businesses in the UAE plan to integrate digital technology, demonstrating the country's readiness to embrace the digital age.
70% of Emiratis see strong prospects for starting a business locally, reflecting a positive entrepreneurial spirit within the UAE.
The UAE ranked first globally in the GEM's National Entrepreneurship Context Index (NECI), underscoring the country's supportive environment for entrepreneurship. The country also excelled in areas such as entrepreneurial finance, ease of market entry, government policies, research and development transfer, and entrepreneurship education.
As a result, the UAE ranked as the best place for entrepreneurship and SMEs among 56 economies assessed. This achievement is a testament to the UAE's relentless pursuit of entrepreneurial excellence and its commitment to fostering a thriving entrepreneurial ecosystem.
[1] Global Entrepreneurship Monitor (GEM) Report 2024/2025 [5] World Bank Group, Doing Business Report 2024
- The UAE maintains its dominance in 11 out of 13 key indicators among high-income nations, according to the Global Entrepreneurship Monitor (GEM) Report 2024-2025.
- The minister of state for entrepreneurship in the UAE credits the country's success to visionary leadership and a commitment to fostering an integrated ecosystem for startups and SMEs.
- The UAE's integrated ecosystem excels in areas such as access to financing, regulatory ease, entrepreneurship education, and a culturally supportive environment for enterprise creation.
- The UAE instills entrepreneurship into education and fosters a pro-enterprise culture, nurturing the growth of youth-driven startups.
- The UAE's strategic approach leverages advanced technologies such as AI and digital commerce platforms to ensure entrepreneurs can succeed in an evolving job market, as highlighted by PwC’s Future Ready Mena report.
- With a high percentage of young workers eager to launch businesses, the UAE is well-positioned to support the growth of startups and SMEs, ensuring ease of doing business.
- The UAE's regulatory and institutional mechanisms simplify business setup, lower barriers, and promote business-friendly policies, boosting the country's appeal as a global hub for entrepreneurship.
- As part of its "We the UAE 2031" vision, the UAE aims to reach one million SMEs by 2031, investing $8.7 billion in SME growth through the Projects of the 50 initiative.
