UAE Leads the Way in Global Entrepreneurship, Attracts Businesses and Investors

The UAE has firmly established itself as a leading global destination for entrepreneurs, offering a nurturing environment for businesses and startups to thrive. This strategic move has been championed by the UAE government through pioneering initiatives, flexible legislative frameworks, and comprehensive incentives, making the country a beacon for innovation and growth.

At the forefront of this transformation is Alia bint Abdullah Al Mazrouei, Minister of State for Entrepreneurship. Speaking at the “Expand North Star 2024” event, during a session titled “The UAE’s Vision for Entrepreneurship – Future Growth Opportunities for Local and Global Investors,” Al Mazrouei underscored the UAE’s commitment to fostering a robust entrepreneurship ecosystem. She highlighted the extensive efforts to create a dynamic landscape where both local and global entrepreneurs can flourish.

A Comprehensive Ecosystem for Startups and SMEs

The UAE boasts a comprehensive entrepreneurship and SME ecosystem, which includes over 50 government and private business incubators and accelerators. This ecosystem has been further enhanced by over 60 amended laws, all aimed at supporting the growth of small and medium enterprises (SMEs) and increasing their contribution to the national GDP. The result of these legislative changes has been remarkable, with SMEs now accounting for 63.5 percent of the country’s GDP.

Al Mazrouei shared some key initiatives that form the foundation of this growth:

• National Programme for Small and Medium Enterprises
• The Entrepreneurial Nation
• The Future 100 initiative
• Thabat Family Business Programme

These initiatives, combined with the creation of free economic zones and industrial complexes, are instrumental in attracting and supporting entrepreneurial ventures. Competitive tax rates, reduced fees for obtaining the National Value Added Certificate, and golden visas granted to entrepreneurs for up to 10 years further enhance the appeal of the UAE as a business destination.

Global Recognition and a Vision for the Future

The UAE’s relentless pursuit of becoming a global hub for entrepreneurship has not gone unnoticed. For the third consecutive year, the country has ranked first globally in the Global Entrepreneurship Monitor (GEM) 2023/2024 report. This accolade places the UAE ahead of many advanced economies, reinforcing its position as the world’s best place to set up and operate new businesses.

Al Mazrouei emphasized that the Ministry of Economy, alongside its partners at local, regional, and global levels, is working to ensure that the UAE becomes the leading hub for entrepreneurship by 2031. This is part of the broader vision outlined in the National Agenda for Entrepreneurship and SMEs, which seeks to enhance innovation and creativity across multiple economic sectors.

“Entrepreneurship is a key pillar in achieving the UAE’s goal of becoming the global hub for the new economy by 2031,” said Al Mazrouei. “It encourages entrepreneurs and startups to establish projects in future and sustainable sectors like FinTech, smart mobility, and AI.”

Supporting Entrepreneurs: A Key to Economic Growth

The UAE government’s support for entrepreneurs and SMEs has translated into tangible economic growth. Today, SMEs make up 95 percent of the total number of companies in the UAE, employing 86 percent of the private sector workforce. The impressive growth of Emirati-owned SMEs, which expanded by 10.4 percent in 2022, further highlights the success of these initiatives.

In addition to financial incentives, the Expand North Star 2024 event, which draws thousands of business leaders, global investors, startups, and entrepreneurs, serves as a catalyst for investment and innovation. The forum provides a unique platform for sharing best practices, discussing policies, and fostering partnerships that will continue to elevate the UAE’s entrepreneurship landscape.

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