UAE ranks first globally in entrepreneurship for fifth year

Top rankings across key indicators

The UAE ranked first among high-income economies in eight major indicators in the report. These include physical infrastructure, government policies in terms of support and relevance, tax and bureaucracy-related policies, government entrepreneurshipprogrammes, research and development transfer, ease of market entry in terms of dynamics, ease of entry in terms of regulatory burdens, and entrepreneurial education. This reflects the strength, integration, and advancement of the country’s ecosystem in supporting entrepreneurship and the establishment of startups.

Strong financial ecosystem and global competitiveness

The country also ranked second globally in both entrepreneurial finance and ease of access to funding, highlighting the strength and flexibility of its financial system. This confirms the readiness of the UAE’s economic environment to empower startups and enhance their opportunities for growth and expansion.

The UAE is also among only four countries globally that have achieved or exceeded the “sufficiency” level across all framework conditions of the entrepreneurship index. This reinforces its position as one of the world’s leading entrepreneurial environments, supported by advanced infrastructure, effective government policies, and strong digital readiness.

Minister highlights strategic vision

Abdullah bin Touq Al Marri, Minister of Economy and Tourism, expressed pride in the UAE’s achievement, noting that ranking first globally reflects the country’s commitment to strengthening its entrepreneurship ecosystem and cementing its position as the most supportive economy for entrepreneurs and the top destination for establishing businesses.

He said this achievement is a direct result of the leadership’s vision, which places entrepreneurship and small and medium-sized enterprises at the heart of building a competitive, knowledge-based economy driven by innovation. He also highlighted the UAE economy’s high level of resilience and its ability to adapt to regional and global changes.

Policies, initiatives, and national vision

The minister added that these results reflect the strength and integration of competitive policies and legislation introduced by the UAE to create a supportive entrepreneurial environment. This includes initiatives and strategies designed to empower entrepreneurs, notably the success of the national campaign “UAE: Global Entrepreneurship Capital,” which aims to position the country as the leading destination for talent, innovators, and entrepreneurs worldwide.

He further noted that these outcomes align with the objectives of the “We the UAE 2031” vision, which seeks to establish the country as a global hub for the new economy by supporting high-potential sectors such as technology, artificial intelligence, renewable energy, space, and financial technology.

Advanced performance in entrepreneurial environment

The UAE recorded a strong global performance in the quality of its entrepreneurial environment, achieving a score of 7.0 in the National Entrepreneurship Context Index (NECI) for 2025. This index measures the overall entrepreneurial climate in each country based on expert assessments, reflecting the robustness of the UAE’s ecosystem and the high level of confidence among business owners and investors.

Readiness for AI and sustainability

The report indicated that the UAE is among only six countries where entrepreneurs unanimouslyrecognise the critical importance of artificial intelligence over the next three years, reflecting its readiness to transition towards a knowledge-based, digital economy.

In this context, the UAE, alongside Taiwan (China), Norway, and Sweden, received an “excellent” rating in both sustainability priorities and AI awareness, highlighting a balanced approach towards innovation and sustainable development.

Global access and infrastructure strength

The UAE also performed strongly in the “international access” indicator, ranking among the top five countries globally in terms of startups’ ability to access external markets. This success is driven by the country’s advanced infrastructure and logistics network, described in the report as exceptional in connecting local entrepreneurs with global consumers.

High entrepreneurial activity rates

The report confirms that the UAE has created a dynamic and growing entrepreneurial environment, with more than one in five adults (over 20%) engaged in starting new businesses. This reflects the strength of incentives and enablers supporting startups.

The Total Early-stage Entrepreneurial Activity (TEA) rate also reached a high level of 19.2%, indicating a strong pipeline of new ventures. The report noted that the steady flow of entrepreneurial projects is the result of a motivating environment where starting a business is an attractive career option, supported by streamlined procedures and strong government and financial backing.

Talent attraction and inclusive entrepreneurship

The UAE continues to demonstrate its attractiveness to talent, with entrepreneurial activity reaching 19.6% among citizens and 22.4% among residents. This reflects the country’s ability to attract skilled individuals and promote participation across different segments of society.

The report also highlighted the UAE’s success in fostering female entrepreneurship by providing access to resources and opportunities for women entrepreneurs within an integrated ecosystem.

Culture, education, and future readiness

More than half of entrepreneurs in the UAE consider family traditions an important driver for starting and growing their businesses, reflecting the depth of entrepreneurial culture within society.

The country also achieved notable progress in entrepreneurship education in schools, ranking among the top five globally. There is a clear focus on developing creative thinking, problem-solving, risk assessment, and opportunity recognition skills among students, helping to prepare a future generation of entrepreneurs.

Flexible funding environment

The reportemphasised that entrepreneurship in the UAE is supported by an advanced and flexible funding environment, offering a wide range of opportunities for entrepreneurs to secure capital for launching and expanding their businesses.

This strength is reflected in the diversity of funding sources available, including government initiatives, investment funds, and venture capital. Such support enhances entrepreneurs’ confidence and enables them to transform ideas into scalable projects, contributing to a dynamic business environment aligned with the country’s vision for a knowledge- and innovation-driven economy.