The United Arab Emirates (UAE) has claimed the top spot globally for the fourth consecutive year in the Global Entrepreneurship Monitor (GEM) Report 2024/2025. The report further recognized the UAE as the best place for entrepreneurship and small and medium-sized enterprises among 56 economies evaluated this year.
The UAE achieved the highest rank among high-income nations in 11 out of 13 key indicators, based on expert evaluations of institutional frameworks that promote the entrepreneurial landscape.
Areas of excellence
The UAE excelled globally in several areas, including: entrepreneurial finance, accessibility to funding, government policies that support entrepreneurship, tax and bureaucracy policies, entrepreneurship programs initiated by the government, education related to entrepreneurship at both school and post-school levels, research and development transfer, commercial and professional infrastructure, ease of market entry concerning regulatory challenges, and social and cultural norms that favor entrepreneurship.
Alia bint Abdullah Al Mazrouei, UAE minister of State for Entrepreneurship, remarked that this achievement reflects the outcomes of the UAE’s forward-looking vision, driven by the guidance of its wise leadership, aimed at establishing a cohesive entrepreneurship and SME ecosystem.
She emphasized that the UAE’s ongoing recognition as the best place for entrepreneurship and the premier destination for startups globally, for the fourth year in succession, signifies the nation’s progress both regionally and internationally.
Read more: UAE dominates the entrepreneurship scene for third year in a row
Commitment to entrepreneurship
Al Mazrouei noted that this milestone illustrates the UAE’s dedication to cultivating an attractive and impactful entrepreneurial environment that aligns with global best practices. This commitment enables startups to thrive in advanced and digital economic sectors while providing financing initiatives and solutions that aim to position the country as a global hub for the new economy by the next decade, in accordance with the objectives outlined in the “We the UAE 2031” vision.
The report underscored that the UAE’s entrepreneurial ecosystem continues to flourish and gain global recognition, supported by business-friendly policies, distinguished government initiatives, and a competitive investment climate. A significant factor contributing to this success was the UAE’s investment of $8.7 billion to enhance innovation and facilitate the growth of small and medium-sized enterprises as part of the Projects of the 50 initiative. The report also noted the allowance of 100 percent foreign ownership of companies and the steady rise in foreign direct investment, which reached record levels in 2023.
Entrepreneurial culture
Moreover, it highlighted that the entrepreneurial culture in the UAE is characterized by high levels of awareness and ambition among its populace. Approximately 67 percent of adults know an entrepreneur or believe they possess the skills necessary to start a business. Concurrently, 70 percent of Emiratis perceive strong opportunities to launch a business locally, 78 percent of new entrepreneurs prioritize social and environmental impact over profit, and 75 percent of early-stage entrepreneurs plan to expand their teams and employ at least six individuals within the next five years. Furthermore, 80 percent intend to incorporate digital technology into their business operations, 78 percent are driven to generate significant income or wealth, and 55 percent of entrepreneurs cater to customers outside the UAE, thereby reinforcing the nation’s status as a global center for business and investment.
The UAE was also ranked first globally in the same report under the GEM’s National Entrepreneurship Context Index (NECI), which evaluates each country’s supportive environment for entrepreneurship based on scores derived from national experts’ assessments. This aligns with the UAE’s vision to achieve one million SMEs by 2031.
