In recent decades, the United Arab Emirates has significantly enhanced its global presence in the entrepreneurship sector, establishing itself as a preferred destination for entrepreneurs. Many have realized their dreams in the UAE, achieving considerable success and expanding their businesses both regionally and internationally. They benefit from investment advantages, robust infrastructure, efficient logistics, diverse industrial zones, a comprehensive legal framework, and a strategically vital location that seamlessly connects the UAE with the rest of the world.
The national campaign titled “UAE: Capital of Global Entrepreneurs,” launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, aims to solidify the UAE’s position as a global hub for entrepreneurship. This is being achieved through an extensive array of programs and initiatives designed to support youth, empower them to establish businesses, stimulate innovation, and contribute to the diversification of the national economy.
The UAE recognizes the significance of the entrepreneurship sector in leading the transition toward a knowledge-based and competitive economic model. By mid-2022, small and medium-sized enterprises (SMEs) accounted for 63.5% of the UAE’s non-oil GDP. The UAE continues to strengthen this vital position with proactive initiatives, securing the top spot globally for the fourth consecutive year in the Global Entrepreneurship Monitor (GEM) report for 2024/2025. It has been classified as the best place for entrepreneurship and SMEs among the 56 economies covered in the report, claiming the highest rank (among high-income countries) in 11 out of 13 key indicators assessed by experts regarding the institutional frameworks supporting the entrepreneurship environment. These indicators include entrepreneurial finance, access to funding, supportive government policies, tax and bureaucracy-related policies, government entrepreneurship programs, integration of entrepreneurship education in schools and post-school, transfer of R&D findings, commercial and professional infrastructure, ease of market entry in terms of burdens and regulations, and social and cultural conditions for entrepreneurship. Additionally, the Global Soft Power Index for 2025 revealed that the UAE ranked second globally in ease of doing business.
This report highlights the key factors that have enhanced the UAE’s investment environment for entrepreneurs, particularly in line with the national campaign “UAE: Capital of Global Entrepreneurs.” This campaign, overseen by the Ministry of Economy and Tourism and in collaboration with more than 50 governmental and private entities, business incubators and accelerators, and academic institutions across the UAE, aims to provide a comprehensive environment that enables youth and entrepreneurs to establish innovative projects.
Promoting Entrepreneurship
The UAE has adopted an exceptional economic strategy that bolsters investment success opportunities, focusing on both encouraging local entrepreneurs and attracting investors from abroad. This is evident through numerous quality initiatives aimed at enhancing the national entrepreneurship ecosystem, drawing on best global practices. The UAE acknowledges the importance of this ecosystem in diversifying the economy, boosting innovation across various sectors, and creating job opportunities for Emirati youth, especially with over 50 governmental, private institutions, business incubators, and accelerators operating within the UAE market.
Recent entrepreneurship initiatives led by the Ministry of Economy and Tourism, along with federal and local entities, have resulted in heightened awareness of entrepreneurship culture in the UAE. Statistics reveal that 67% of adults know at least one entrepreneur or believe they have the necessary skills to start a business, 70% of the community sees strong opportunities for launching local businesses, and 78% of new entrepreneurs prioritize social and environmental impact over profitability. Moreover, 75% of early-stage entrepreneurs expect to expand their teams, 80% plan to incorporate digital technology into their operations, and 78% are eager to build significant wealth or achieve a high income. Notably, 55% of entrepreneurs in the UAE serve clients outside the local markets, reinforcing the UAE’s status as a global business hub.
To attract global investments, the UAE has launched several initiatives supporting the growth of entrepreneurs and startups in the Emirati market over the past few years. Initiatives like “100 Future Companies” and “Investopia” aim to encourage the establishment of innovative startups in new and sustainable economic sectors, while providing a nurturing environment for global talent. Additionally, 16 governmental entities support SMEs by assisting them in acquiring necessary expertise and accessing global markets. Consequently, the UAE has become a conducive environment for the growth of unicorn companies, ranking 17th globally in this regard.
Leading Investment Pillars
The UAE’s global leadership in attracting entrepreneurs and startups looking to expand is underpinned by various foundational elements that make it the best business environment worldwide. These include simplified government procedures, reduced bureaucracy, tax incentives, and financial support aimed at attracting more entrepreneurs and investors. Furthermore, promoting public-private partnerships enhances entrepreneurship, thereby providing funding, expertise, and technical support for SMEs. The UAE government has also launched accelerator programs, such as the Dubai Future Accelerators and Abu Dhabi Accelerators, to support entrepreneurs with necessary funding. The UAE offers a comprehensive legislative framework comprising laws and economic and investment policies that support entrepreneurship, including guarantees of 100% foreign ownership for companies, access to over 2000 economic activities with the potential for 100% profit repatriation, and more than 10 major governmental programs supporting entrepreneurship. Additionally, the country has advanced infrastructure, including ports and airports connecting the UAE globally, alongside the establishment of free economic zones and industrial complexes that support the growth of entrepreneurial projects, with streamlined company formation processes and competitive tax rates. Entrepreneurs can also benefit from a 10-year golden visa program and a strong banking system with high liquidity, backed by governmental support without restrictions on foreign currency transfers.
Supportive Policies
The entrepreneurial environment in the UAE is continuously flourishing and advancing on a global scale, fueled by supportive business practices, exceptional government initiatives, and a competitive investment climate. This progress is further highlighted by the state investing approximately AED 8.7 billion to enhance innovation and the growth of SMEs as part of the “Fifty Projects” initiative dedicated to entrepreneurship and SMEs.
The UAE does not settle for its current investment capabilities; it actively seeks to implement innovative plans to elevate the country’s competitiveness in various fields of entrepreneurship. The aim is to increase the success rate of entrepreneurs from 30% to 50% within the next decade, aligning with the new entrepreneurial ecosystem’s objectives, which contribute to establishing a culture of innovative entrepreneurship, providing integrated incentives for business establishment, and supporting the growth potential of promising SMEs, ensuring their global outreach beginning from the UAE.