UAE Ranked World’s Best Environment for Entrepreneurship for Fifth Consecutive Year
The UAE has once again secured its position at the top of the global entrepreneurship landscape, ranking first worldwide for the fifth consecutive year in the Global Entrepreneurship Monitor (GEM) 2025-2026 Global Report.
The country outperformed several advanced economies and was recognised as the best environment globally for starting and operating a new business, according to the report.
Beyond the headline ranking, the results provide an interesting look at why the UAE continues to attract entrepreneurs, startups and international talent – from government support and access to markets to financing, infrastructure and growing adoption of artificial intelligence.
UAE Ranks First Across Eight Entrepreneurship Indicators
The UAE ranked first among high-income economies across eight indicators assessed in the report.
These cover physical infrastructure, government support and policies, taxes and bureaucracy, government entrepreneurship programmes, research and development transfers, market dynamics, regulatory burdens and entrepreneurial education.
Financing also emerged as a particular strength, with the UAE ranking second globally for Entrepreneurial Finance and Ease of Access to Entrepreneurial Finance.
The country was additionally one of only four economies to reach or exceed the required level of sufficiency across all entrepreneurial framework conditions assessed by GEM.
More Than One in Five Adults Engaged in Entrepreneurship
Entrepreneurship is not only being supported institutionally; the report indicates that it is increasingly becoming part of the country’s economic culture.
More than one in five adults in the UAE – over 20% – is engaged in entrepreneurship, while the Total Early-stage Entrepreneurial Activity rate stood at 19.2%.
Entrepreneurial activity reached 19.6% among UAE nationals and 22.4% among residents, highlighting the country’s ability to encourage local entrepreneurship while simultaneously attracting international talent and business founders.
The UAE also achieved a National Entrepreneurial Context Index score of 7.0 in 2025, reflecting expert assessments of the overall environment available to entrepreneurs.
AI Is Becoming Increasingly Important to UAE Entrepreneurs
Artificial intelligence also features prominently in the findings.
The UAE was among only six countries where entrepreneurs unanimously agreed on the critical importance of AI over the next three years.
It also joined Taiwan, Norway and Sweden in receiving an “Excellent” rating in both the Sustainability Priorities Index and AI Awareness Index, highlighting the increasing intersection between entrepreneurship, technology and sustainability.
This direction aligns with the UAE’s wider ambition to develop a knowledge and innovation-led economy, particularly across sectors including technology, artificial intelligence, renewable energy, space and fintech.
UAE Startups Gain Strong Access to International Markets
For founders looking beyond the domestic market, the GEM findings also point towards another advantage.
The UAE ranked among the world’s top five countries for startups’ ability to access international markets, supported by its infrastructure and logistics ecosystem connecting businesses with consumers globally.
Entrepreneurship education is developing too, with the country ranking among the top five globally for Entrepreneurship Education at School. The focus includes developing skills such as creative thinking, problem-solving, identifying opportunities and evaluating risks among students.
According to Abdulla bin Touq Al Marri, UAE Minister of Economy and Tourism, the results reflect the country’s continued focus on entrepreneurship and SMEs as an important component of building a competitive, knowledge-based economy.
The achievement also supports the objectives of We the UAE 2031 and initiatives including “The Emirates: The Startup Capital of the World”, as the country works to strengthen its position as a destination for founders, innovators and global talent.
The GEM 2025-2026 report assessed 53 economies, representing approximately 43% of the world’s population and 57% of global GDP. Its research included more than 160,000 Adult Population Survey participants, over 2,000 national experts and 370 technical experts and researchers.
For entrepreneurs considering launching or expanding a venture in the region, the latest ranking reinforces the UAE’s position as one of the world’s most developed ecosystems for turning business ideas into scalable ventures.
News Source: WAM
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