UAE small-business licences jump over 900% in two decades

Abu Dhabi: The UAE’s small and medium-sized enterprise sector has expanded significantly, with the number of active SME licences rising by more than 140% compared with 2020 and by more than 900% compared with 2000, as the country pushes ahead with a national strategy to strengthen entrepreneurship.

The growth comes as the UAE continues to strengthen its global standing in entrepreneurship. The country ranked first globally for the fifth consecutive year in the Global Entrepreneurship Monitor 2025/2026 report, while placing second worldwide for both entrepreneurial finance and ease of access to entrepreneurial finance.

The figures were reviewed during a meeting of the UAE Council for Entrepreneurship, chaired by Abdulla bin Touq Al Marri, Minister of Economy and Tourism, which examined national initiatives and targets aimed at improving the competitiveness and long-term sustainability of the country’s entrepreneurship and SME ecosystem.

The council also reviewed the results of “The Emirates: The Startup Capital of the World”, the national campaign launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, in September 2025. 

Bin Touq said the UAE had placed entrepreneurship and SMEs at the centre of its economic development plans, viewing them as key drivers of economic growth, diversification and a knowledge-based economy built around innovation and sustainability.

He noted that government policies had helped create an integrated system of programmes and incentives designed to respond to entrepreneurs’ needs and help their businesses grow and expand.

The UAE Council for Entrepreneurship, he added, provides a national platform for coordinating efforts and developing initiatives to support SMEs, which account for about 95% of all companies operating in the country and more than 85% of private-sector jobs.

Recent Ministry of Economy and Tourism figures also put SMEs at around 95% of UAE businesses and more than 85% of private-sector employment. 

Bin Touq said the results of the national entrepreneurship campaign demonstrated the impact of those policies and programmes in strengthening the UAE’s position as a global destination for entrepreneurs and startups.

More than 400 Emiratis trained

The meeting reviewed a series of results from “The Emirates: The Startup Capital of the World” campaign.

More than 400 Emirati men and women were trained and qualified through its programmes, while 214 citizens benefited from the Riyada programme, which recorded a satisfaction rate of 97%.

The campaign also led to the launch of 41 government initiatives across nine areas, implemented with 10 partner entities in five emirates.

Government procurement generated through the campaign reached a combined Dh202 million.

That included Dh78.6 million through 55 contracts signed with seven government entities, as well as Dh123.4 million at the federal level.

Another 405 businesses were registered in the suppliers’ registry.

The campaign also provided incubation support to 30 real estate companies, registered 46 tax agents, licensed 40 project management experts, supported 49 beneficiaries through the Emirati Families Programme and backed 100 student projects.

National entrepreneurship strategy

The council also discussed deeper cooperation between federal and local authorities on the development of a national entrepreneurship strategy.

The proposed strategy would include programmes and projects intended to improve the competitiveness of the entrepreneurship ecosystem, support the growth and sustainability of SMEs and create a more flexible and enabling business environment.

The discussions also covered governance, monitoring and methods for measuring the impact of initiatives once they are implemented.

UAE works with OECD on entrepreneurship policies

The meeting reviewed recommendations for aligning UAE entrepreneurship and SME policies in cooperation with the Organisation for Economic Co-operation and Development, or OECD.

The recommendations are built around four main areas: access to finance, innovation, internationalisation and measurement, alongside efforts to further develop the legislative and regulatory environment.

Council members discussed how the recommendations should be prioritised, how responsibility for implementation should be divided between federal and local authorities and how a roadmap for the next phase should be structured.

The aim is to draw on international practices to strengthen the entrepreneurship ecosystem and improve the environment in which SMEs grow and remain sustainable.

Mobile accelerators target villages

The council also reviewed progress on the “Mobile Accelerators in Villages” initiative, which is being implemented to give entrepreneurs in villages and other targeted areas better access to services and support needed to develop their businesses.

Members discussed expanding cooperation to increase the initiative’s reach and address practical obstacles faced by entrepreneurs.

Proposed support includes simplifying licensing procedures, providing business locations and financing, making incubation programmes available and connecting businesses with market outlets and sales channels.

The measures are intended to help entrepreneurs overcome barriers to expansion while improving the sustainability of their businesses.