The United Arab Emirates has claimed the top spot globally for the fourth consecutive year in the Global Entrepreneurship Monitor (GEM) report for 2024/2025. The report highlights the UAE as the best environment for entrepreneurship and small to medium enterprises among 56 economies included this year.

The UAE achieved first place among high-income countries in 11 out of 13 key indicators evaluated by experts. These indicators assess the institutional frameworks that support the entrepreneurial environment. The UAE excelled in areas such as entrepreneurial project financing, ease of access to funding, supportive government policies for entrepreneurship, tax and bureaucracy-related government policies, government entrepreneurship programs, integration of entrepreneurship into school education and post-school education, commercialization of research and development, professional infrastructure, and market entry ease regarding regulatory burdens.

In response to these achievements, Aliya bint Abdullah Al Mazrouei, Minister of State for Entrepreneurship, emphasized the visionary approach adopted by the UAE, which has been supported by the wise leadership. She noted that the integrated entrepreneurial ecosystem has yielded significant progress both regionally and globally, securing the UAE’s position as the best environment for entrepreneurship for the fourth time.

Al Mazrouei added that this accomplishment reflects the UAE’s commitment to creating an attractive and influential atmosphere for entrepreneurship based on global best practices. It also aims to enable emerging companies to expand in advanced economic sectors, providing suitable initiatives and solutions for financing diverse projects. This supports the UAE’s goal of becoming a global center for the new economy by the next decade, in line with the objectives of the “We are the UAE 2031” vision.

The report detailed that the UAE is enhancing its entrepreneurial environment, driven by supportive policies and outstanding government initiatives. It noted that a significant factor contributing to this success is the investment of approximately $8.7 billion aimed at fostering innovation and the growth of small and medium enterprises. This forms part of the “Projects of the Fifty” initiatives related to entrepreneurship, which includes allowing 100% foreign ownership of companies and the continual rise in foreign direct investments, which reached a record high in 2023.

The report also highlighted the high entrepreneurial culture in the UAE, with 67% of adults knowing an entrepreneur or believing they possess the skills to start a business. Furthermore, 70% of the Emirati community sees strong opportunities for launching local businesses. Additionally, 78% of new entrepreneurs prioritize social and environmental impact over profitability, while 75% of early-stage entrepreneurs expect to expand their teams, employing at least six employees in the next five years. Moreover, 80% plan to integrate digital technology into their operations, with 78% eager to build substantial wealth or earn high incomes. Notably, 55% of entrepreneurs in the UAE serve clients outside the Emirati market, further solidifying the UAE’s status as a global business and investment hub.

The UAE also ranked first globally in the report’s “National Entrepreneurship Context Index” (NECI), which assesses the supportive climate for entrepreneurship in each country based on experts’ opinions. This ranking reinforces the UAE’s vision to reach one million small and medium enterprises by 2031.

It is important to note that the announcement of this report coincided with the 25th anniversary of GEM as a leading global institution in the field of entrepreneurship. GEM is recognized as one of the most important global references in entrepreneurship by international organizations, including the World Bank, the International Monetary Fund, the OECD, WIPO, and various United Nations agencies.

The report represents the largest study on entrepreneurship and its activities worldwide, summarizing research conducted by GEM across global economies to measure their entrepreneurial activity. The methodology focuses on three goals: measuring differences in entrepreneurial activity across economies, understanding the entrepreneurial ecosystem, and proposing policies to enhance and develop entrepreneurship activity.