Entrepreneurship in the United Arab Emirates: a worldwide success story
International recognition for excellence
The United Arab Emirates dominates 11 of the 13 key indicators in the High Income Country ranking. The country stands out in particular for its easy access to financing, the quality of government policies in favor of entrepreneurship, an attractive tax environment, entrepreneurship education programs starting at school and a high-performance business infrastructure.
The report also highlights the government's commitment to supporting SMEs through ambitious public policies and colossal investments. For example, the UAE has injected $8.7 billion into innovation and SME support as part of the “Projects of the 50” initiative. This policy is complemented by the possibility for foreign investors to hold 100% of the capital of their companies, which has largely contributed to increasing foreign direct investment, reaching a record $22.7 billion in 2023.
A long-term strategic vision
This international recognition does not come from nowhere. In fact, it rewards the “We the UAE 2031” strategy, which aims to make the United Arab Emirates a global hub for the new economy. Alia bint Abdullah Al Mazrouei, Minister Delegate for Entrepreneurship, points out that “this result reflects the UAE's forward-looking vision and the directives of its wise leadership, which have made it possible to establish a coherent ecosystem for entrepreneurship and SMEs”. Yet, to succeed, the country needs more than vision and investment. In practical terms, the government has put in place a strategy that translates into concrete actions such as support throughout the entrepreneurial life cycle: awareness-raising and training from the earliest age, support for business start-ups, access to financing, support infrastructure, and assistance with internationalization.
In this way, it is with a cross-functional approach that the United Arab Emirates is fostering the emergence of technology startups in key sectors such as AI, fintech, energy and cybersecurity.
Results: entrepreneurship is deeply rooted in Emirati society. According to GEM, 67% of adults in the UAE know an entrepreneur or feel capable of starting a business. 70% see concrete opportunities to create a local business. What's more, entrepreneurship is seen as more than just a means to profit: 78% of new entrepreneurs emphasize social and environmental impact, 75% plan to hire at least six people in the next five years, and 80% intend to integrate digital technologies into their processes.
In conclusion, it's vital to understand that SMEs account for 94% of the country's businesses and employ 86% of the workforce. However, investing in startups also means feeding the pool of SMEs. That's why startups are at the heart of our economic diversification strategy, which aims to reduce our dependence on hydrocarbons. The objective is clear: to reach one million SMEs by 2031 and give birth to 10 unicorns, startups with a valuation in excess of one billion dollars. With the example of Careem, sold to Uber for $3.1 billion, the United Arab Emirates are showing that they already have the means to achieve their ambitions. The country's trajectory should become a source of inspiration for all MENA countries which, by putting in place a favorable political, legal and financial framework, will be able to follow in the footsteps of the United Arab Emirates, now a leading regional and international actor.
Sources :
https://gemconsortium.org/report/gem-20242025-global-report-entrepreneurship-reality-check-4
