Today's Edition
BATOOL GHAITH (ABU DHABI)
The UAE's fifth consecutive top ranking in the Global Entrepreneurship Monitor (GEM) 2025/2026 report reflects a deeply integrated ecosystem where policy, investment and economic stability continue to reinforce business growth, experts said.
The UAE outperformed major economies with a National Entrepreneurial Context Index score of 7.0, cementing its position as the best place in the world to start and operate a business.
Dr Wissam El Khoury, Associate Dean of the School of Business at the American University in Dubai and a wealth and investment consultant, said the UAE's leadership in entrepreneurship is the result of "a deliberately built economic ecosystem rather than a single policy measure."
"Most importantly, the UAE ranks at or near the top across the core conditions that matter to entrepreneurs: government policy, tax and bureaucracy, entrepreneurial programmes, access to finance, commercial infrastructure, market entry, physical infrastructure, and post-school entrepreneurial education," El Khoury told Aletihad.
This shows that the UAE has moved beyond isolated startup support and created a full business environment where regulation, infrastructure, financing, talent attraction, digital adoption, and international market access support one another, he noted.
El Khoury said the ranking is consistent with broader macroeconomic indicators, which highlight the country's economic strength and stability, policy predictability, and a strong non-oil growth engine.
He added that the UAE's continued top ranking sends a strong signal of international confidence.
"Entrepreneurs and investors look for three things: Clarity of rules, access to markets, and confidence that growth will continue. The UAE performs strongly on all three," El Khoury said.
He also highlighted strong investment inflows as further evidence of international trust in the UAE's business environment.
According to UNCTAD's World Investment Report 2025, global FDI fell by 11% In 2024, yet the UAE attracted $45.6 billion in FDI inflows, according to UAE government reporting based on UNCTAD data.
"That contrast is important as it shows that the UAE is gaining investment traction even when global capital flows are under pressure," El Khoury added, noting that entrepreneurship is central to the UAE's long-term non-oil economic ambitions.
"It converts diversification from a macroeconomic objective into thousands of new firms, jobs, technologies, exports, and productivity gains," he added.
He pointed to strong growth in entrepreneurial activity across the country, noting that the next phase of diversification will depend not only on large national champions, but also on scalable SMEs and startups that can export services, adopt AI, deepen digital trade, and create skilled private-sector jobs.
The GEM report indicated that the UAE is among only six countries where entrepreneurs unanimously recognise the critical importance of AI over the next 3 years.
Enabling Regulatory Environment
Waqar Khan, a business strategy expert, said the UAE's success reflects the strength of its startup ecosystem and regulatory environment.
"From an ecosystem perspective, the UAE stands out for its regulatory agility, ease of business setup, and access to global talent," Khan told Aletihad.
He pointed out that free zones and investor-friendly policies allow founders to launch quickly, while strong infrastructure and international connectivity make it an ideal base to scale across the broader region.
Khan noted that the country's shift towards a knowledge-based economy has played a critical role in driving entrepreneurship.
"National strategies focused on innovation, technology, and entrepreneurship have created real market opportunities for startups, while regulatory sandboxes and forward-looking policies reduce barriers to experimentation and growth," he added.
Khan also highlighted the importance of government-backed programmes in accelerating startup growth.
"Beyond funding, they provide access to networks, corporate partners, and even government entities as early clients, significantly accelerating commercialisation and reducing time-to-market," he explained.
Overall, the UAE's success is the result of a highly coordinated approach where policy, infrastructure, and investment are all aligned to support entrepreneurship at every stage, Khan said.
