UAE tops global entrepreneurship rankings for fourth consecutive year

Dubai: The UAE has been ranked first globally for the fourth consecutive year in the Global Entrepreneurship Monitor (GEM) report, reaffirming its position as the world’s best environment for entrepreneurship and small and medium enterprises (SMEs). The UAE outperformed 55 other economies included in this year’s report.

The country led 11 out of 13 key indicators among high-income nations, based on expert assessments of institutional frameworks supporting entrepreneurship. The UAE excelled in entrepreneurial financing, ease of access to capital, and government policies promoting entrepreneurship.

Other areas where the UAE topped global rankings include favourable tax and regulatory policies, government-backed entrepreneurship programs, and the integration of entrepreneurship into school and post-school education. Additionally, the nation ranked first in business and professional infrastructure, ease of market entry, and the transfer of research and development outcomes.

The latest ranking underscores the UAE’s commitment to fostering a thriving entrepreneurial ecosystem, solidifying its status as a global hub for innovation, investment, and business growth.

Integrated entrepreneurship system

On the UAE’s top global ranking in the Global Entrepreneurship Monitor (GEM) report, Alia Abdulla Al Mazrouei, Minister of State for Entrepreneurship, highlighted the nation’s visionary approach to fostering a world-class entrepreneurial ecosystem.

“The UAE’s forward-looking vision, guided by the support and directives of its wise leadership, has established a comprehensive framework for entrepreneurship and SMEs. This strategy has led to remarkable progress at both regional and global levels, securing the UAE’s position as the world’s leading destination for entrepreneurship and startups for the fourth consecutive year,” she said.

The minister emphasised that this milestone reflects the UAE’s commitment to creating an attractive and dynamic entrepreneurial climate, built on international best practices. “The UAE continues to empower startups to expand into digital and advanced economic sectors, while providing tailored financing solutions and initiatives that support business growth. These efforts align with the nation’s ambition to solidify its position as a global hub for the new economy by the next decade, in line with the objectives of We Are the UAE 2031.”

National entrepreneurial initiatives

Al Mazrouei reaffirmed the UAE’s commitment to advancing its global leadership in entrepreneurship, highlighting ongoing national efforts to enhance the country’s standing in competitive indicators.

“The UAE is continuously working to strengthen its entrepreneurial ecosystem, with the goal of increasing the success rate of entrepreneurs from 30per cent to 50per cent by the next decade. This aligns with the objectives of the new entrepreneurship framework, which aims to foster a culture of innovation, provide integrated incentives for startups, and equip small and medium enterprises (SMEs) with the tools needed for sustainable growth and global expansion from the UAE,” she said.

Al Mazrouei underscored that these initiatives reinforce the UAE’s position as a leading hub for entrepreneurship, ensuring that SMEs with high potential receive the necessary support, incentives, and growth enablers to thrive in international markets.

$8.7 billion investment boosts UAE’s entrepreneurial competitiveness

The UAE’s entrepreneurial ecosystem continues to thrive on the global stage, supported by pro-business policies, visionary government initiatives, and a highly competitive investment climate, according to the latest report.

A key driver of this success is the UAE’s strategic investment of $8.7 billion to foster innovation and accelerate the growth of small and medium enterprises (SMEs). This investment falls under the "Projects of the 50" initiatives, which are designed to strengthen the country’s entrepreneurship landscape.

The report also highlighted the UAE’s policy allowing 100 per cent foreign ownership of companies, a move that has significantly boosted investor confidence. Additionally, the country recorded a historic increase in foreign direct investment (FDI) in 2023, further cementing its position as a global hub for business, innovation, and entrepreneurship.

Thriving and ambitious entrepreneurial culture

The UAE’s entrepreneurial culture is marked by high levels of awareness, ambition, and innovation, with a strong societal embrace of business creation, according to the latest GEM report.

The report revealed that 67 per cent of adults in the UAE either know an entrepreneur or believe they have the skills to start their own business, while 70 per cent of the population sees strong opportunities for launching a business locally. Furthermore, 78 per cent of new entrepreneurs prioritise social and environmental impact alongside profitability, reflecting a forward-thinking business mindset.

Growth expectations remain strong, with 75 per cent of early-stage entrepreneurs planning to expand their teams and hire at least six employees over the next five years. Additionally, 80 per cent of entrepreneurs aim to integrate digital technologies into their business operations, reinforcing the UAE’s position as a leader in digital transformation.

The report also highlighted that 78 per cent of new entrepreneurs are motivated by the prospect of building significant wealth or high income, while 55 per cent of UAE-based entrepreneurs serve international clients, underscoring the nation’s status as a global hub for business, investment, and innovation.

UAE secures top global ranking in NECI

The UAE also secured the top global ranking in the National Entrepreneurship Context Index (NECI), reaffirming its world-leading business environment.

The NECI assesses the entrepreneurial climate in each country based on expert evaluations of policy frameworks, infrastructure, and support systems that foster business growth. The UAE’s top ranking reflects its proactive strategies in creating an ecosystem that enables startups and SMEs to thrive.

This achievement aligns with the UAE’s ambitious vision of reaching one million SMEs by 2031, further strengthening its position as a global hub for innovation, investment, and entrepreneurship.