The United Arab Emirates has once again affirmed its standing as one of the world’s premier destinations for startups and entrepreneurs. According to the Global Entrepreneurship Monitor (GEM) Report 2024/2025, the UAE has ranked first globally for the fourth consecutive year, emerging as the top destination for entrepreneurship and small and medium-sized enterprises among 56 economies assessed worldwide.
A Four-Year Streak at the Top
The GEM report — recognised as the world’s largest study on entrepreneurship and cited by institutions including the World Bank, the IMF, the OECD, and the United Nations — placed the UAE first among high-income countries in 11 out of 13 key institutional indicators supporting entrepreneurship. These include access to financing, ease of market entry, government entrepreneurship programmes, tax and regulatory policies, research and development infrastructure, and cultural and social standards that encourage business creation.
The UAE also secured the top position globally in GEM’s National Entrepreneurship Context Index (NECI), which evaluates each country’s entrepreneurial environment based on expert assessments.
What Is Driving the UAE’s Rise
Several structural factors underpin the UAE’s dominance in global entrepreneurship rankings. The country committed USD 8.7 billion toward innovation and SME growth under its Projects of the 50 initiative, alongside the introduction of 100 per cent foreign ownership rights and record levels of foreign direct investment. Free zones across Dubai, Abu Dhabi, and Ras Al Khaimah continue to offer zero corporate tax on qualifying income, enabling founders to retain and reinvest capital at a scale few global jurisdictions can match.
The broader ecosystem is equally compelling. With nearly 99 percent internet penetration, world-class physical infrastructure, and a digitally native population, the UAE provides a launchpad for startups targeting regional and international markets simultaneously. The country’s strategic location — bridging Europe, Asia, and Africa — further amplifies its appeal for businesses seeking global scale from day one.
The Numbers Behind the Ecosystem
The UAE startup ecosystem secured over USD 625 million in funding in the first quarter of 2026 alone, with fintech commanding approximately 46 per cent of all startup investment. The non-hydrocarbon sector now accounts for more than 77 per cent of GDP, projected to grow at 4.8 per cent through 2026, reflecting the depth of economic diversification underway.
The government’s ambition is equally clear-cut: a target of one million SMEs by 2031, supported by ongoing regulatory reform, entrepreneur visa pathways, and a growing network of accelerators, incubators, and sovereign-backed venture capital.
A Message to Global Founders
Alia bint Abdullah Al Mazrouei, UAE Minister of State for Entrepreneurship, noted that the country’s continued recognition reflects the results of a forward-looking vision backed by its leadership — one designed to build an integrated entrepreneurship ecosystem aligned with global best practices.
For founders, investors, and enterprises evaluating their next base of operations, the UAE’s fourth consecutive ranking as the world’s top entrepreneurial environment is not simply an accolade. It is a signal that the infrastructure, policies, and ambition required to build and scale a business are firmly in place.
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