The UAE has reaffirmed its commitment to becoming a global hub for entrepreneurship by 2031, with recent amendments to over 60 laws designed to enhance the growth of small and medium-sized enterprises (SMEs). According to Alia bint Abdulla Al Mazrouei, Minister of State for Entrepreneurship, these changes aim to increase the contribution of SMEs to the national economy.
Al Mazrouei stated, “Today, this ecosystem houses more than 50 government and private business incubators and accelerators. In light of these developments, the UAE has been ranked first globally for the third consecutive year by the Global Entrepreneurship Monitor (GEM) report 2023/2024, surpassing many advanced economies.”
The remarks were made during a session titled ‘The UAE’s Vision for Entrepreneurship — Future Growth Opportunities for Local and Global Investors,’ at the Expand North Star 2024 event. This significant event, hosted by the Dubai Chamber of Digital Economy at Dubai Harbour, brought together startups and investors from across the globe.
SMEs represent 95% of businesses in the UAE, contributing 63.5% to the country’s GDP and employing 86% of the private sector workforce.
In 2022, Emirati-owned SMEs experienced a 10.4% growth, further underlining the sector’s importance to the UAE economy.
Al Mazrouei emphasized that the UAE’s entrepreneurship ecosystem is built on pioneering initiatives, a supportive legislative framework, and incentives designed to encourage business development. Among the ongoing efforts are programmes like the National Programme for Small and Medium Enterprises, The Entrepreneurial Nation, and the Future 100 initiative. These initiatives offer competitive tax rates, reduced fees for the National Value Added Certificate, and golden visas for entrepreneurs and talented individuals, allowing them to stay in the UAE for up to 10 years.
The minister highlighted that collaboration at local, regional, and international levels is crucial to positioning the UAE as a leader in entrepreneurship. “This is in line with the objectives of the National Agenda for Entrepreneurship and SMEs, as well as the goal to enhance innovation and creativity across various economic sectors,” she said. The emphasis is on fostering innovation in sectors such as FinTech, AI, sustainable manufacturing, and smart mobility.
“Entrepreneurship is a key pillar in achieving the UAE’s goal of becoming the global hub for the new economy by 2031, as it encourages entrepreneurs and startups to establish projects in future and sustainable economic sectors,” Al Mazrouei concluded.
