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UAE is the best place to do business for third year in row: Global Entrepreneurship Monitor

UAE is the best place to do business for third year in row: Global Entrepreneurship Monitor
14 Feb 2024 19:41

Allan Jacob (ABU DHABI)

The UAE is again the best place in the world to start a business, according to the results of a new survey, which are not surprising as the government is fast-tracking the adoption of AI and other advanced technologies in several different sectors while it races to become the leader of what is known as the knowledge economy and the Fourth Industrial Revolution.


The Global Entrepreneurship Monitor (GEM) survey's National Entrepreneurship Context Index (NECI) puts the UAE's score at 7.7, the highest recorded ever. What's more creditable is that the UAE has now held the top spot on the index for three years in a row.


According to the UAE Policy Roadmap in the Global Report: “As recently as 2019, the United Arab Emirates had scored 5.8 and ranked fifth. This demonstrates astonishing progress, and a shining example of how political determination and sufficient resources can transform an entrepreneurial environment.”


Diversification from the oil economy that began almost a decade ago, and the increasing focus on the country’s non-oil sectors, have contributed to the UAE’s consistently strong showing on the entrepreneurship charts. "Rounding out the top five in the NECI were India, Saudi Arabia, Lithuania and Qatar. It is worth noting for policymakers that not one North American or European economy are amongst this illustrious group," the report said.


Forty-nine countries participated in the survey this year, with most hailing from the G20 (Australia opted out). From this, GEM produces a rating of 13 different entrepreneurial conditions to create the annual index.


A closer examination of the survey shows the UAE scored highest across the entire sample of 49 economies in all but one of the entrepreneurial framework conditions (EFC), ranking slightly behind Saudi Arabia for “ease of entry”. What's worthy of note, however, is that the GEM index is also focused on the quality of the entrepreneurial environment, at an average of 13 EFCS.
Last year, 11 out of 13 EFC scores improved in the UAE, with one decrease and one unchanged. Increases were highest for Research and Development Transfers as well as Commercial and Professional Infrastructure - from 6.8 to 7.8. Scores under Physical Infrastructure saw a marginal drop.


So what's working for the UAE in the entrepreneurship space, and why are startups and founders of new businesses flocking to the country and its favourable business environs? The country moved rapidly after the pandemic with several initiatives and projects. It has also signed bilateral deals with other countries and diversified its ambitions. At the federal level, it is embarking on the “Projects of the 50” to build physical infrastructure and sound digital systems. It has eased its visa scheme with Golden Visas for high net worth individuals and businesses, visas for students, and remote visas, that have since drawn millions to its shores from all over the world.


But the real boost for entrepreneurship came when the UAE allowed 100% foreign ownership of companies in 2021. Since then, there's been no looking back with accelerator programmes like “Ghadan 21” which has spent Dh50 billion in Abu Dhabi since 2019. The country's green economy credentials also got a boost with the staging of COP28 last year, and nearly 200 governments signing up for the UAE Consensus to phase out fossil fuels.

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