Global Leadership in Entrepreneurship Maintained by UAE for Fourth Year Straight
The United Arab Emirates (UAE) continues to solidify its position as a global leader in entrepreneurship and small and medium-sized enterprises (SMEs), securing the top spot for the fourth year in a row in the Global Entrepreneurship Monitor (GEM) Report 2024/2025.
This remarkable achievement is attributed to several key factors, each playing a pivotal role in fostering a thriving entrepreneurial ecosystem.
Economic Diversification and Growth
The UAE has made significant strides in expanding its economy beyond oil, with rapid growth in sectors such as tourism, trade, financial services, industry, real estate, telecoms, and technology. This diversification has attracted foreign investment and enhanced economic resilience, fueling entrepreneurship.
Robust Foreign Trade and Investment
The UAE's robust foreign trade is evident in the record-breaking AED835 billion in non-oil foreign trade achieved in Q1 2025. This strong international commercial activity provides a dynamic market environment for startups and businesses.
Government Support and Strategic Initiatives
The UAE government has demonstrated its commitment to supporting entrepreneurship by allocating substantial budget resources towards social development and community strengthening. Initiatives like targeted funding, innovation competitions, and infrastructure development have stimulated entrepreneurial activities.
Strategic Infrastructure and Real Estate Growth
Areas like Dubai Creek Harbour and Dubai Hills Estate have shown rapid real estate growth, driven by luxury and affordable housing, integrated transport links, and lifestyle developments. These attractive environments for business and innovation communities contribute to the UAE's entrepreneurial success.
Access to International Markets and Talent
The UAE's openness as a global business hub attracts global experts, investors, and entrepreneurs, enriching its startup ecosystem and innovation culture. The country's strong credit ratings and international connectivity further support its attractiveness.
Innovation and Deep Tech Development
Government-backed initiatives and competitions promote technologies in health, energy, environment, and climate, fostering cutting-edge startups and positioning the UAE as a leader in advanced sectors.
Entrepreneurial Culture
The UAE's entrepreneurial culture is marked by a high percentage of adults and Emiratis seeing opportunities and prospects for starting businesses locally. This optimistic outlook is reflected in the fact that 70% of Emiratis see strong prospects for starting a business locally, and 67% of adults in the UAE are aware of entrepreneurship opportunities.
In her recent remarks, Alia bint Abdullah Al Mazrouei, the Minister of State for Entrepreneurship in the UAE, attributed the country's success to its visionary leadership and its commitment to fostering an integrated ecosystem for startups and SMEs. The UAE's strategic efforts are aimed at positioning itself as a global hub for entrepreneurship.
The UAE's commitment to SME growth is evident in its investment of $8.7 billion through the Projects of the 50 initiative. The country aims to reach one million SMEs by 2031.
Moreover, the UAE has made it possible for foreigners to own 100% of companies, further encouraging investment and entrepreneurship. The country's entrepreneurial success is also reflected in its ranking as the best place for entrepreneurship and SMEs among 56 economies assessed.
The UAE was also ranked first globally in the GEM's National Entrepreneurship Context Index (NECI). An impressive 55% of businesses in the UAE already serve international markets, and 80% of new businesses plan to integrate digital technology.
Record-breaking foreign direct investment levels were achieved in 2023 in the UAE, and the country excelled in areas such as entrepreneurial finance, ease of market entry, government policies, research and development transfer, and entrepreneurship education.
The UAE's strategic efforts, coupled with its supportive environment for entrepreneurship, have solidified its position as a top global entrepreneurial ecosystem from 2021 to 2025.
- The United Arab Emirates' (UAE) leadership in entrepreneurship and SMEs stems from its solid economic diversification, with growth in sectors like tourism, trade, financial services, industry, real estate, telecoms, and technology.
- The UAE's robust foreign trade, reaching AED835 billion in non-oil trade in Q1 2025, offers a dynamic market for startups and businesses.
- The UAE government invests heavily in supporting entrepreneurship, allocating resources for social development, community strengthening, and strategic initiatives like targeted funding, innovation competitions, and infrastructure development.
- Strategic infrastructure and real estate growth, such as Dubai Creek Harbour and Dubai Hills Estate, provide attractive environments for business and innovation communities.
- The UAE's openness to global talent, experts, and investors enriches its startup ecosystem, aided by strong credit ratings and international connectivity.
- Government-backed initiatives promote deep tech development in sectors like health, energy, environment, and climate, making the UAE a leader in advancement.
- The UAE's entrepreneurial culture fosters an optimistic outlook, with 70% of Emiratis seeing potential for local business growth and 67% aware of entrepreneurship opportunities.
- The UAE's strategic investments, policies, and supportive environment have earned it the title of a top global entrepreneurial ecosystem, ranking first in the GEM's National Entrepreneurship Context Index (NECI) and boasting record-breaking foreign direct investment levels in 2023.
