UAE’s Ambitious Plan for Entrepreneurial Growth

The United Arab Emirates (UAE) is setting its sights on a significant expansion of its entrepreneurial ecosystem, aiming to increase the number of companies to over two million and foster the creation of at least ten unicorns by the year 2031. Abdullah bin Touq Al Marri, the Minister of Economy and Tourism, shared these ambitious goals during the launch of the national initiative titled “The Emirates: The Startup Capital of the World.”

The Role of Startups in Economic Growth

Al Marri emphasized that startups and entrepreneurs are essential to the UAE’s economic growth strategy. He noted that the country has already seen the emergence of five unicorns—startups valued at over $1 billion—and the new campaign is designed to accelerate the development of additional high-value companies.

The initiative aims to create a supportive environment that empowers young entrepreneurs to launch their ventures and pursue growth. This focus on youth entrepreneurship aligns with the UAE’s broader national objectives, which include fostering innovation and enhancing economic diversification.

Comprehensive Support for Innovation

The UAE has established a robust framework to support innovation and entrepreneurship. This includes strategies that encompass various economic sectors, such as food security and intellectual property protection. Al Marri highlighted that both federal and local infrastructures are well-equipped to sustain the growth of startups, ensuring that entrepreneurs have the resources they need to thrive.

Currently, the UAE is home to over 1.2 million companies, with approximately one million of these being entrepreneur-owned. This statistic underscores the critical role that entrepreneurs play in bolstering the national economy, as they represent nearly 94% of the total business landscape.

The Importance of Small and Medium-Sized Enterprises (SMEs)

Small and medium-sized enterprises (SMEs) are already a cornerstone of the UAE’s economic framework. As of mid-2022, SMEs contributed a remarkable 63.5% to the UAE’s non-oil GDP and accounted for 95% of all companies operating within the local market. This highlights the significant impact that these businesses have on the overall economic health of the nation.

Key Targets for 2031

The UAE’s entrepreneurial vision includes several key targets aimed at fostering a vibrant business environment:

• Two million companies are expected to operate in the UAE by 2031.
• Ten unicorns are targeted, with five already established in the region.
• The current landscape features 1.2 million active companies nationwide.
• Approximately one million firms are owned by entrepreneurs, making up 94% of the total.
• By mid-2022, SMEs contributed 63.5% to the non-oil GDP.
• 95% of all companies in the UAE are classified as SMEs.

Conclusion

The UAE’s commitment to expanding its entrepreneurial landscape is clear. With a focus on innovation, youth empowerment, and robust support systems, the nation is poised to become a global hub for startups. As the government continues to implement strategies that foster growth and sustainability, the future looks promising for entrepreneurs in the UAE.