UAE’s Entrepreneurship Ecosystem Strengthens Top GEM Ranking for Fifth Consecutive Year
The United Arab Emirates (UAE) has maintained its top position in the Global Entrepreneurship Monitor (GEM) for five consecutive years, as confirmed by the 2025/2026 edition of the report. This ranking underscores the UAE’s entrepreneurial ecosystem, which has outperformed numerous advanced economies, solidifying its reputation as the premier location for starting a business. The achievement reflects a sustained effort in ecosystem development, warranting examination as a potential blueprint for other nations.
Understanding the GEM Report
The Global Entrepreneurship Monitor is the most extensive study of entrepreneurial activity globally, now in its 27th year. It compiles data from 53 economies, representing approximately 43% of the global population and 57% of global GDP. Unlike traditional business registration metrics, which merely count registered companies, GEM gathers data directly from individuals through surveys, capturing the real experiences of entrepreneurs beyond governmental narratives. The latest edition highlights the UAE’s exceptional performance, indicating that it has not merely topped a weak list but has excelled against a robust field of competitors.
Eight Indicators, One Leader
The UAE achieved first place across eight critical indicators, including infrastructure, government policies, taxation systems, entrepreneurship programs, research and development transfers, market dynamics, regulatory ease, and entrepreneurship education. While many developed nations excelled in one or two areas, the UAE distinguished itself by leading in all categories simultaneously.
Furthermore, the UAE is one of only four countries to reach or exceed the “sufficiency” level across GEM’s entrepreneurship framework conditions, a benchmark that illustrates the depth and maturity of its entrepreneurial ecosystem. Other countries achieving this status include India, Lithuania, and Saudi Arabia. The UAE also ranked second globally in entrepreneurial finance and ease of access to funding, highlighting the resilience and adaptability of its financial system.
Who Is Starting Businesses?
The GEM report indicates that the UAE’s ranking is not solely based on policy documents; the active participation of individuals is equally significant. With over 20% of adults engaged in starting new businesses, the UAE’s early-stage entrepreneurial activity rate stands at 19.2%. Notably, this figure rises to 19.6% among citizens and 22.4% among residents, indicating the UAE’s ability to attract talent from beyond its national borders.
The report also highlights a notable increase in female entrepreneurial participation, with more than half of surveyed entrepreneurs citing family traditions as a motivating factor for starting their businesses. This trend reflects what GEM describes as a deeply ingrained entrepreneurial culture rather than a purely transactional business environment.
The Future of UAE’s Entrepreneurship Ecosystem
The UAE is among just six countries where entrepreneurs regard artificial intelligence (AI) as critically important, signaling a readiness for a digital economy. This focus on AI is not coincidental; the government has made substantial investments in AI infrastructure and national strategies, alongside educational initiatives aimed at preparing citizens and residents for technology-driven business models.
In conjunction with Taiwan, Norway, and Sweden, the UAE received high ratings for sustainability priorities and AI awareness. This integration of innovation and sustainability within the business ecosystem represents a strategic pivot for a nation historically reliant on hydrocarbon resources.
Government Perspectives on the Ranking
Abdullah bin Touq Al Marri, the Minister of Economy and Tourism, linked the UAE’s ranking directly to national policy. He emphasized that this achievement is a direct outcome of the leadership’s vision to place entrepreneurship and small and medium-sized enterprises at the heart of a competitive, innovation-driven economy. He also connected the results to the “We the UAE 2031” vision, which aims to position the UAE as a global hub across various sectors, including technology, AI, and renewable energy.
The UAE’s entrepreneurial ecosystem has demonstrated remarkable consistency over five reporting cycles, navigating challenges such as a global pandemic and regional conflicts. This sustained performance at the top of a global benchmark is attributed to the alignment of infrastructure, policy, and execution, as confirmed by the GEM report for the fifth consecutive year.
Source: timesofdubai.ae
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Published on 2026-04-29 17:32:00 • By the Editorial Desk
