The United Arab Emirates (UAE) has been ranked number one globally for the fourth consecutive year by the Global Entrepreneurship Monitor (GEM) report for 2024-2025, surpassing many advanced economies. The UAE was also recognised as the world’s best destination for entrepreneurship and small and medium-sized enterprises (SMEs) among 56 economies surveyed in this year’s report.
The UAE ranked first among high-income countries in 11 of 13 key indicators, evaluating the institutional frameworks supporting entrepreneurship based on expert assessments. The country outperformed globally in areas including financing for entrepreneurial projects, ease of fund access, government policies supporting entrepreneurship, government-related tax and bureaucracy policies, government entrepreneurship programs, integration of entrepreneurship in school and high education, research and development transfer, commercial and professional infrastructure, ease of market entry in terms of burdens and regulatory frameworks, as well as social and cultural standards towards entrepreneurship.
A Comprehensive Entrepreneurship Ecosystem
On this occasion,H.E. Alia Bint Abdulla Al Mazrouei, Minister of State for Entrepreneurship, said, “Thanks to the support and directives of the UAE’s wise leadership, our country has built a comprehensive and forward-thinking entrepreneurial ecosystem, driving its advancement as a global leader in entrepreneurship. This is reflected in the UAE’s top global ranking for the fourth consecutive year as the world’s best environment for entrepreneurship and the preferred destination for start-ups.”
H.E. added, “This accomplishment highlights the UAE’s dedication to creating a dynamic and attractive environment for entrepreneurship, aligned with global best practices. By empowering start-ups to expand into digital and advanced economic sectors and providing innovative financing solutions, the UAE is solidifying its position as a global hub for the new economy by the next decade, in line with the objectives of the ‘We the UAE 2031’ vision.”
Leading National Initiatives
H.E. Al Mazrouei continued, “Our national efforts continue to focus on enhancing the UAE’s position in global entrepreneurship competitiveness indicators and increasing the success rate of entrepreneurs from 30 per cent to 50 per cent within the next decade. Aligned with the new entrepreneurship framework, these efforts foster a culture of innovative entrepreneurship, offer comprehensive incentives for establishing business, support growth enablers of promising SMEs, and strengthen their access to global markets from the UAE.”
$8.7 billion investment to enhance the competitiveness of the entrepreneurship ecosystem
According to the report, the entrepreneurship ecosystem in the UAE continues to thrive and make progress globally, driven by supportive business and economic policies, strategic government initiatives, and a competitive investment climate. A key factor in this success is the country’s investment of $8.7 billion under the “Project of the 50” initiative, aimed at fostering innovation and the growth of SMEs. This initiative, along with the country allowing 100 per cent foreign ownership of businesses and record-breaking foreign direct investment inflows in 2023, continues to enhance the UAE’s position as a global hub for entrepreneurs.
High-Level Entrepreneurship Culture
The report highlighted that the entrepreneurship culture in the UAE is marked by a high level of awareness and ambition among its people. Around 67 per cent of adults either know an entrepreneur or believe they have the necessary skills to start a business. Additionally, 70 per cent of the UAE population sees strong opportunities for launching a business locally, while 78 per cent of new entrepreneurs prioritise social and environmental impact over profitability. Meanwhile, 75 per cent of early-stage entrepreneurs plan to expand their teams, intending to hire at least six employees in the next five years. The report also revealed that 80 per cent of entrepreneurs plan to integrate technology into their business operations, and 78 per cent of new entrepreneurs are eager to build significant wealth or earn a high income. Moreover, 55 per cent of UAE entrepreneurs cater to clients outside the UAE market, reinforcing the country’s position as a global business and investment hub.
UAE ranks first globally in the “National Entrepreneurship Context Index”
The UAE also secured top spot globally in GEM’s National Entrepreneurship Context Index (NECI), reflecting the strength of the country’s entrepreneurial environment, which was evaluated based on a points system derived from the opinions of entrepreneurship experts. This reinforces the UAE’s vision of reaching one million SMEs by 2031.
