UAE retains rank as top global entrepreneurship powerhouse
Outshining economic giants like the US, the UK, and South Korea, the UAE has held the number-one position in the National Entrepreneurship Context Index (NECI) for four straight years. This achievement underscores the nation's relentless drive to foster a dynamic entrepreneurial ecosystem, setting a gold standard for small and medium-sized enterprises (SMEs) among 56 assessed economies.
The GEM report lauds the UAE for its 'strong entrepreneurial landscape,' awarding it first place in 11 of 13 key indicators. These include entrepreneurial finance, ease of funding access, robust commercial infrastructure, and a regulatory environment designed to empower business creators. Government initiatives, such as entrepreneurship education for youth, have also earned high praise, reflecting a holistic strategy to nurture talent from the ground up.
Alia Al Mazrouei, Minister of State for Entrepreneurship, hailed the ranking as a proof of the UAE's forward-thinking vision. 'This is a testament to our commitment to building an integrated ecosystem that delivers an attractive and impactful climate for entrepreneurs,' she said.
Fuelling this success is a $8.7 billion investment in innovation and SME growth, alongside policies like 100 per cent foreign ownership of companies — a game-changer introduced in 2021. This openness has turbocharged foreign direct investment (FDI), which soared to a record $22.7 billion in 2023, according to the UAE Ministry of Economy.
Such figures highlight why the UAE remains a magnet for global business talent. The GEM report also reveals that 67 per cent of UAE adults know an entrepreneur or feel equipped to start a business, while 70 per cent of Emiratis spot ripe opportunities for local ventures. Increasingly, these entrepreneurs are targeting social impact, digital innovation, and international markets — aligning with global trends like sustainability and tech-driven growth.
SMEs form the backbone of the UAE's economy, comprising 94 per cent of all companies and employing 86 per cent of the workforce, per Ministry of Economy data. This dominance underscores their critical role in driving economic diversification away from oil dependency — a cornerstone of the UAE Vision 2021 and 2030 agendas. The GEM report's findings align with these ambitions, noting the UAE's top global NECI ranking as a springboard toward its goal of hosting one million SMEs by 2031.
The UAE's aspirations don't stop at homegrown talent. Through its National Agenda for Entrepreneurship and SMEs, the country is on a mission to lure the world's brightest business minds. By 2031, it aims to be the leading entrepreneurial nation globally and cradle 10 unicorn startups — private firms valued over $1 billion. With companies like Careem (acquired by Uber for $3.1 billion in 2019) already showcasing the UAE's startup prowess, this target seems within reach. Recent data from Startup Genome ranks Dubai among the top 30 global startup ecosystems, further validating the nation's trajectory.
Analysts attribute the UAE's edge to its strategic location, tax-free environment, and relentless policy innovation. For instance, the Golden Visa programme, offering 10-year residency to investors and entrepreneurs, has drawn a flood of international talent since its expansion in 2022.
As the UAE charges toward its 2031 vision, its fourth consecutive GEM triumph signals more than just a winning streak — it's a blueprint for how nations can engineer entrepreneurial success. By blending bold investments, progressive policies, and a culture that celebrates risk-taking, the UAE isn't just topping league tables; it's redefining the global business landscape, they said.
Meanwhile, hubs like Dubai Internet City and Abu Dhabi's Masdar City are incubating tech-driven ventures, positioning the UAE as a leader in AI, fintech, and green energy startups.
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