UAE ranked as the world’s best destination for entrepreneurs

The United Arab Emirates (UAE) has once again secured its position as the leading destination for entrepreneurs, being ranked the best place in the world for fostering entrepreneurial ventures. This accolade comes as part of the Global Entrepreneurship Monitor (GEM) Report for 2024/2025, where the UAE has topped the list for the fourth consecutive year, excelling among 56 assessed economies globally.

In its evaluation, the GEM report highlighted the UAE’s dominance among high-income countries, achieving the top rank in 11 out of 13 indicators assessed. These indicators included crucial areas such as entrepreneurial finance, ease of access to funding, supportive government policies on entrepreneurship, and initiatives aimed at enhancing education around entrepreneurship. Additionally, the report noted the effectiveness of the UAE’s policies regarding taxes, regulatory frameworks, and the overall commercial and professional infrastructure, demonstrating a robust environment for business entry and operation.

Alia bint Abdullah Al Mazrouei, the UAE’s Minister of State for Entrepreneurship, commented on this significant achievement, stating that it reflects the outcomes of the UAE’s progressive vision and leadership commitment towards establishing a comprehensive ecosystem for entrepreneurship and small and medium-sized enterprises (SMEs). She remarked, “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.” Al Mazrouei emphasised the UAE’s dedication to nurturing a dynamic entrepreneurship climate aligned with global best practices, which is intended to help startups thrive in advanced and digital economic sectors.

Supporting this entrepreneurial prowess, the GEM report noted the UAE’s $8.7 billion investment aimed at bolstering innovation and SME growth as part of the Projects of the 50 initiative. The allowance for 100 per cent foreign ownership of companies has substantially contributed to attracting foreign direct investment, which has hit record levels in 2023.

The report further revealed that the entrepreneurial spirit within the UAE is marked by a high degree of awareness and ambition. Approximately 67 per cent of adults surveyed indicated either knowing an entrepreneur or feeling equipped with the necessary skills to start a business. Notably, 70 per cent of Emiratis see significant opportunities for establishing businesses locally, while 78 per cent of new entrepreneurs express a focus on social and environmental impact rather than solely profit. Furthermore, 75 per cent of early-stage entrepreneurs plan to expand their workforce, targeting the employment of at least six individuals within the next five years.

Digital integration also appears to be a priority among entrepreneurs, with 80 per cent intending to leverage digital technology in their operations. Additionally, 78 per cent aim to achieve substantial financial success, with 55 per cent of entrepreneurs seeking to cater to customers beyond the UAE’s borders, thereby reinforcing the nation’s standing as a global hub for business and investment.

In summary, the UAE not only achieved first place in the GEM’s National Entrepreneurship Context Index, which evaluates countries’ supportive environments for entrepreneurship, but it also aligns with the UAE’s ambitious goal to establish one million SMEs by the year 2031. The sustained growth and recognition of the UAE as a formidable environment for entrepreneurship and innovation highlight its strategic efforts to shape a thriving economic landscape.

Source: Noah Wire Services