The UAE has retained its position as the world’s most supportive environment for entrepreneurship for the fifth year in a row, according to the latest Global Entrepreneurship Monitor (GEM) 2025/2026 report.
The report placed the UAE ahead of several advanced economies, ranking it first globally for ease of starting and running new businesses. It also topped eight indicators among high-income economies, including infrastructure, government policy support, entrepreneurship programmes, research and development transfer, and ease of market entry.
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Top 2 in entrepreneurial finance
The report showed strong performance across key areas that support business activity. The UAE ranked second globally in both entrepreneurial finance as well as access to funding, attributed to the country’s availability of capital for startups.
The UAE was also one of four countries to meet or exceed all conditions measured by the report, which is driven in large part due to a stable business environment supported by policies, infrastructure and digital readiness.
The country scored 7.0 on the National Entrepreneurship Context Index (NECI), which measures the overall environment for entrepreneurship based on expert assessments.
Artificial intelligence
The report found that the UAE is among six countries where entrepreneurs see artificial intelligence as critical over the next three years. It also gave the UAE top ratings, alongside Taiwan, Norway and Sweden, in both sustainability priorities and awareness of AI.
Startups in the UAE continue to expand beyond the domestic market. The country ranked among the top five globally in the “international access” indicator, which measures how easily companies can enter foreign markets.
The report attributed this to strong infrastructure and logistics networks that support global trade.
High business activity
Entrepreneurial activity in the UAE remains high, with more than one in five adults (over 20 per cent) starting or running a new business. Moreover, early-stage entrepreneurial activity stood at 19.2 per cent.
The report also highlighted the country’s ability to attract talent. Entrepreneurial activity reached 19.6 per cent among citizens and 22.4 per cent among residents. Women’s participation in entrepreneurship has also increased, in part due to better access to funding and resources.
Entrepreneurship education
The UAE ranked among the top five countries for entrepreneurship education in schools, with a focus on skills such as problem-solving, creativity and risk assessment. More than half of entrepreneurs said family traditions play a role in starting and growing their businesses.
Speaking on the results, Minister of Economy and Tourism Abdullah bin Touq Al Marri said the ranking reflects long-standing policy efforts to build a competitive, knowledge-based economy.
“We are proud of the UAE ranking first globally in developing the entrepreneurship ecosystem,” he said. “This achievement reflects the leadership’s focus on prioritising entrepreneurship and SMEs as a key pillar of economic growth driven by innovation and knowledge.”
The GEM report is based on data from 53 economies, covering around 43 per cent of the world’s population and 57 per cent of global GDP.
Source: Khaleej Times