The UAE has once again solidified its position as the leading destination for entrepreneurs and startups, ranking first globally in the Global Entrepreneurship Monitor (GEM) report for the fourth consecutive year. Outperforming 55 economies, the UAE excelled in 11 out of 13 key indicators for high-income nations, confirming its status as a global hub for entrepreneurship, innovation, and SME growth.

The UAE’s remarkable achievement is attributed to its supportive institutional frameworks, including entrepreneurial financing, ease of market entry, government policies, and digital transformation strategies. Additionally, favourable tax regulations, education programs promoting entrepreneurship, and business infrastructure helped the country lead the rankings.

Visionary Policies Empower Entrepreneurs

Alia Abdulla Al Mazrouei, Minister of State for Entrepreneurship, credited the UAE’s leadership and forward-looking policies for creating an attractive entrepreneurial ecosystem. She highlighted the UAE’s commitment to fostering a dynamic environment that supports startups, SMEs, and digital businesses, aligning with the objectives of We Are the UAE 2031.

“The UAE’s comprehensive framework for entrepreneurship reflects its ambition to become a global hub for the new economy by the next decade,” said Al Mazrouei. “We aim to increase the success rate of entrepreneurs from 30% to 50%, providing integrated incentives and sustainable growth enablers.”

 

$8.7 Billion Investment and Strategic Reforms

A key driver behind the UAE’s entrepreneurial success is its strategic investment of $8.7 billion under the Projects of the 50 initiative, designed to strengthen the country’s startup ecosystem. Reforms such as allowing 100% foreign ownership and policies promoting foreign direct investment (FDI) have further enhanced the UAE’s business competitiveness.

In 2023, the UAE witnessed a historic surge in FDI, reinforcing its image as a preferred destination for global investors and entrepreneurs.

 

Thriving Entrepreneurial Culture

The GEM report also revealed a thriving entrepreneurial mindset among UAE residents. About 67% of adults in the country know an entrepreneur or believe they have the skills to start a business, while 70% see strong business opportunities locally. The UAE’s startup ecosystem is also characterised by social responsibility, with 78% of entrepreneurs prioritising environmental and social impact alongside profitability.

Additionally, 75% of early-stage entrepreneurs plan to expand their teams, and 80% aim to integrate digital technologies into their businesses, reinforcing the UAE’s leadership in digital transformation.

 

UAE Tops National Entrepreneurship Context Index

Further affirming its global leadership, the UAE secured the top ranking in the National Entrepreneurship Context Index (NECI), which evaluates the policy, infrastructure, and support systems that promote entrepreneurship. This milestone aligns with the UAE’s vision to host one million SMEs by 2031, reinforcing its status as an international hub for business, investment, and innovation.

 

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