UAE Achieves First Place Globally In Global Entrepreneurship Monitor Report For Fourth Year Running

The United Arab Emirates (UAE) has once again topped the Global Entrepreneurship Monitor (GEM) Report for 2024/2025, marking its fourth consecutive year as the leader. The report evaluated 56 economies, ranking the UAE as the prime location for entrepreneurship and small and medium-sized enterprises (SMEs). The UAE excelled in 11 out of 13 key indicators among high-income countries, showcasing its robust support for entrepreneurial ventures.

Alia bint Abdullah Al Mazrouei, Minister of State for Entrepreneurship, highlighted that this achievement reflects the UAE's strategic vision and leadership. She stated that the UAE's consistent recognition as a top environment for entrepreneurship underscores its regional and international progress. "The UAE’s continued recognition as the top environment for entrepreneurship and the leading destination for startups globally for the fourth year in a row represents the country's regional and international progress," she said.

The UAE's entrepreneurial landscape thrives due to supportive policies and initiatives. Government programmes, ease of funding access, and favourable tax policies contribute significantly. The country also excels in areas like entrepreneurial finance, education at various levels, research transfer, infrastructure, market entry ease, and cultural norms supporting entrepreneurship.

The GEM report also praised the UAE's investment climate. A notable factor is the US$8.7 billion investment under the Projects of the 50 initiative to foster innovation and SME growth. Additionally, allowing 100 percent foreign ownership of companies has boosted foreign direct investment to record levels in 2023.

The entrepreneurial spirit in the UAE is marked by high awareness among its population. About 67 percent of adults know an entrepreneur or feel equipped to start a business. Furthermore, 70 percent of Emiratis perceive strong local business opportunities. This culture fosters ambition and innovation within the nation.

Many new entrepreneurs in the UAE focus on social and environmental impacts over profit. Approximately 78 percent prioritise these aspects, while 75 percent plan to expand their teams significantly within five years. Moreover, digital technology integration is a priority for 80 percent of entrepreneurs.

Global Business Hub Vision

The GEM report also ranked the UAE first globally under its National Entrepreneurship Context Index (NECI). This index evaluates each country's supportive environment based on expert assessments. Such recognition aligns with the UAE's vision to host one million SMEs by 2031.

The entrepreneurial ecosystem in the UAE continues to advance globally due to business-friendly policies and competitive investment climates. The country's commitment to fostering an attractive entrepreneurship climate aligns with global best practices.

In addition to fostering local growth, many entrepreneurs serve international markets. About 55 percent cater to customers outside the UAE, reinforcing its status as a global business hub. This international reach strengthens its position as a centre for business and investment worldwide.

This ongoing success demonstrates how strategic investments and policies can create a thriving entrepreneurial environment. The UAE remains committed to becoming a global hub for new economic sectors by leveraging advanced technologies and innovative solutions.

With inputs from WAM