The UAE has been ranked first in the world by the Global Entrepreneurship Monitor (GEM) in its Global Entrepreneurship Index 2022, which was released this week.

To achieve this feat, the UAE moved three spots from fourth place in last year's survey, outperforming other prominent global economies analysed in the report. With a score of 6.8, the UAE came out on top in the overall rating of the index.

In a study conducted by the report, the UAE was also named the number one global destination for creating and starting enterprises, with the most favourable conditions for entrepreneurship.

 

An Exemplary Condition for Entrepreneurship

As per a statement of the Minister of Economy, Abdullah bin Touq Al Marri released by WAM, "This prestigious achievement can be attributed to the unconditional support and the forward-looking vision of the UAE’s wise leadership. The UAE is entering the next 50 with the accomplishment of this achievement, by being at the forefront of global economies through the development of an exemplary entrepreneurship system and a highly enabling environment for companies. Today, the country serves as an ideal incubator for entrepreneurs and attracts leading projects, especially those operating in new economic sectors, innovation and emerging technologies."

He added: "We are proud of this feat, which is a result of our wise leadership’s long-term vision that has put the entrepreneurship sector at the forefront of the development priorities and economic vision of the UAE. The global leadership that the country has achieved today confirms the soundness of this approach, the strength of government economic policies, and the efficiency of the private sector, especially the success rates enjoyed by the entrepreneurship sector and SMEs in the UAE".

This achievement, he noted, is the outcome of the Ministry of Economy's combined and continuing work with its partners from all federal and municipal governments, other global partners, funds and local programmes concerned with SMEs in the country, and academic entities.

The UAE's top ranking is an invitation to newer investors, business owners, and companies both inside and outside the country. The country has a strong economic environment and flexible, proactive policies that provide all of the facilities and incentives needed to attract and support businesses.

It emphasises the SMEs model, in which businesses operating in the UAE can make use of the potential prospects and advantages provided by the country's business environment to expand and succeed in regional as well as worldwide markets.

 

SMEs and Beyond

According to Dr. Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs, the UAE's number one rating in entrepreneurship, which recognises its extremely conducive environment for entrepreneurship, is a new milestone to be added to the UAE's track record.

The statement of Dr. Ahmad Belhoul Al Falasi released by WAM states, “This achievement of the UAE confirms the efficiency of the experience that the country has gained over the past years in developing an integrated and world-class entrepreneurship system, accelerating the growth of SMEs. This also encompasses the launch of initiatives and programs that make the activities of SMEs a major contributor to increasing the UAE's non-oil GDP and promoting the transition towards technology, innovation and a knowledge economy at a faster pace, in line with the Principles of the 50 and the UAE Centennial 2071."

This accomplishment, he said, will benefit all sectors and economic activities, as well as entrepreneurs and investors across the country, and will boost confidence in the UAE markets as the best place to do business and start businesses.

Al Falasi also mentioned the UAE's entrepreneurial model's most notable achievements in the previous and current years. For the first time in its history, it has ranked first in the region in terms of attracting startup finance, attracting more than USD 1 billion in venture capital.

Moreover, the 'Projects of the 50' were developed in order to create incentives for national entrepreneurship and to facilitate the largest-ever public-private partnership. The introduction of the 'Entrepreneurial Nation' is the newest initiative aimed at elevating entrepreneurial practises and projects to new heights, with the goal of creating 20 unicorns in the country's marketplaces over the next ten years.

 

UAE in the Eyes of Global Entrepreneurship Monitor

According to the Global Entrepreneurship Monitor, the United Arab Emirates has improved on 11 of the index's 13 axes.

The UAE was the only country in the world to achieve a sufficient score or higher on all axes, including Entrepreneurial Finance; Ease of Access to Entrepreneurial Finance; Government Policy: Support and Relevance: Taxes and Bureaucracy; Government Entrepreneurial Programs; Entrepreneurial Education at School; Entrepreneurial Education Post-School; Research and Development Transfers; Infrastructure for Business and Professionals; Market Dynamics; Burdens and Regulation; Physical Infrastructure; Social and Cultural Norms.

The report focuses on the UAE's performance in a number of metrics that were taken into account in the methodology and questionnaires used to assess each country's performance.

Indicators such as the availability of good opportunities to start a business; the availability of skills, knowledge, and experience to start a business; confidence in the ability to meet the challenges posed by COVID-19; plans to use technology to develop business; and the ability of entrepreneurship projects in the country to generate new job opportunities in the coming years all scored highly for the country.

The Global Entrepreneurship Index is one of the indicators of the UAE Vision 2021 National Agenda, It is part of the axis of 'Competitive Knowledge Economy,' which is supervised by the Ministry of Economy with the participation of a national team and many entities concerned with entrepreneurship in the country, including the Prime Minister's Office.

 

About Global Entrepreneurship Monitor

For international organisations such as the World Bank, International Monetary Fund, Organization for Economic Cooperation and Development (OECD), World Intellectual Property Organization (WIPO), and United Nations organisations, the Global Entrepreneurship Monitor is the number one global reference in entrepreneurship.

The Global Entrepreneurship Monitor's (GEM) yearly report is the world's largest study of entrepreneurship and its activities. The study offers a summary of GEM's global economy research, which was undertaken to determine the degree of their leadership.

The technique used in the research aims to achieve three goals: quantifying disparities in entrepreneurial activity among economies, analysing the entrepreneurship ecosystem and identifying variables that affect it, and recommending policies to promote its growth.

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