The UAE, known for its dynamic entrepreneurship and SME ecosystem, is poised to establish itself as a leading hub for entrepreneurship by 2031. The country, recognized as the top destination globally for setting up and operating new businesses, has revised over 60 laws to bolster the growth of SMEs and enhance their economic contribution, according to Alia bint Abdulla Al Mazrouei, Minister of State for Entrepreneurship.
"Currently, this ecosystem includes over 50 government and private business incubators and accelerators. As a result of these advancements, the UAE has secured the top global ranking for the third year in a row in the Global Entrepreneurship Monitor (GEM) report 2023/2024, outperforming numerous advanced economies," the minister stated during a session titled 'The UAE’s Vision for Entrepreneurship — Future Growth Opportunities for Local and Global Investors.'
This session was held at Expand North Star 2024, one of the world's largest gatherings for startups and investors, organized by the Dubai World Trade Centre and hosted by the Dubai Chamber of Digital Economy at Dubai Harbour.
The minister highlighted that SMEs constitute 95% of companies in the UAE’s markets and 86% of the private sector workforce, contributing 63.5% to the UAE’s GDP. Additionally, Emirati-owned SMEs saw a 10.4% growth in 2022.
Al Mazrouei emphasized that the UAE’s entrepreneurship and SMEs ecosystem is distinguished by innovative initiatives, a flexible legal framework, and competitive incentives for business and startup establishment.
She outlined the Ministry of Economy’s initiatives to improve the national entrepreneurship environment, including the launch of the National Programme for Small and Medium Enterprises, The Entrepreneurial Nation, the Future 100 initiative, and the ‘Thabat’ family business programme. Other measures involve the creation of free economic zones and industrial complexes supporting entrepreneurial growth, competitive tax rates, reduced fees for the ‘National Value Added Certificate,’ and the issuance of golden visas to entrepreneurs and skilled individuals for up to 10 years.
Al Mazrouei reiterated the Ministry of Economy’s ongoing efforts, in collaboration with local, regional, and global partners, to position the UAE as a leading hub for entrepreneurship by 2031. This aligns with the National Agenda for Entrepreneurship and SMEs, aiming to foster innovation and creativity across various economic sectors, underscoring the crucial role of startups in driving growth within the SME sector.
"Entrepreneurship is fundamental to achieving the UAE’s ambition of becoming the global hub for the new economy by 2031, encouraging entrepreneurs and startups to launch projects in future-oriented and sustainable sectors such as FinTech, sustainable manufacturing, smart mobility, and AI," the minister concluded.
