The United Arab Emirates (UAE) has once again clinched the number one position worldwide in the Global Entrepreneurship Monitor (GEM) Report 2024/2025, marking its fourth consecutive year at the top. Recognized as the premier hub for entrepreneurship and small to medium-sized enterprises (SMEs) among 56 evaluated economies, the UAE outperformed other high-income nations in 11 of 13 critical indicators. These metrics, assessed by experts, highlight the country’s robust institutional support for entrepreneurship.
The UAE shone in key areas such as entrepreneurial financing, ease of funding access, supportive government policies, streamlined tax and regulatory systems, and extensive entrepreneurship programs. It also excelled in education for entrepreneurs at all levels, research and development transfers, commercial infrastructure, market entry simplicity, and a culture that champions entrepreneurial endeavors.
Alia bint Abdullah Al Mazrouei, UAE Minister of State for Entrepreneurship, credited this success to the nation’s visionary leadership, which has fostered a unified ecosystem for entrepreneurs and SMEs. She highlighted that this repeated global recognition reflects the UAE’s regional and international strides, cementing its role as a startup haven. Al Mazrouei stressed the country’s focus on creating a dynamic entrepreneurial climate aligned with global standards, supporting digital and advanced economic sectors, and offering innovative financing solutions. This aligns with the “We the UAE 2031” vision to make the UAE a new economy leader by the next decade.
The GEM report praised the UAE’s thriving entrepreneurial ecosystem, bolstered by pro-business policies, standout government initiatives, and a strong investment environment. A pivotal $8.7 billion investment under the Projects of the 50 initiative has spurred innovation and SME growth, while policies allowing full foreign ownership have driven record foreign direct investment in 2023.
The UAE’s entrepreneurial spirit is evident in its people: 67% of adults know an entrepreneur or feel equipped to start a business, 70% see local opportunities, and 78% of new entrepreneurs prioritize social and environmental goals. Additionally, 75% of early-stage founders plan to hire at least six employees within five years, 80% aim to integrate digital tech, and 55% serve international markets, reinforcing the UAE’s global business stature. The country also topped the GEM’s National Entrepreneurship Context Index (NECI), supporting its goal of reaching one million SMEs by 2031.
