The United Arab Emirates (UAE) has achieved the top position in the 2023/2024 Global Entrepreneurship Monitor (GEM) report, ranking first globally in the National Entrepreneurial Context Index (NECI). This index evaluates how conducive national environments are to starting and growing businesses across 49 economies. The UAE’s leadership in this domain reflects structural factors, coordinated policy design, and sustained investment in institutional support for entrepreneurship.
Key Insights from the GEM 2024 Report
According to the report, the UAE’s performance is characterized by:
• 1st place globally in overall NECI score
• Top 5 rankings in 11 of 13 NECI framework conditions
• 1st globally in:
• Government Policy: Support and Relevance
• Entrepreneurial Education at the Post-School Level
• Market Dynamics and Ease of Entry
• Physical Infrastructure
• Cultural and Social Norms
These findings indicate a comprehensive national approach to entrepreneurship that integrates education, infrastructure, regulatory support, and social attitudes.
Structural Enablers of Entrepreneurial Ecosystems
1. Public sector alignment and policy frameworks
The UAE’s strategic policymaking plays a central role. Key initiatives such as the Dubai Economic Agenda (D33) and UAE Vision 2031 outline long-term national goals, including fostering innovation and private sector growth. Mechanisms such as long-term residency programs (e.g., Golden Visas) for entrepreneurs and investors reduce barriers to participation and reinforce policy coherence.
2. Post-School entrepreneurial education
The country achieved the highest global score in entrepreneurial education beyond secondary school. This reflects investment in applied, skills-based curricula at tertiary institutions, business incubators, and accelerator programs that connect educational outcomes to market needs.
3. Market entry and operational infrastructure
Regulatory simplification and access to digital government platforms reduce the time and cost associated with launching new businesses. Additionally, the presence of free zones, streamlined licensing, and integration of digital identity systems support efficient firm creation and expansion.
4. Sociocultural factors
High levels of social acceptance of entrepreneurship are notable. Over 80% of adults in the UAE perceive entrepreneurship as a viable career path, and business failure is increasingly viewed through a lens of resilience and learning rather than stigma. This cultural shift underpins greater participation and innovation tolerance.
Entrepreneurial outcomes: Participation and sustainability
Beyond enabling conditions, the UAE demonstrates strong entrepreneurial outcomes:
• High Total Early-Stage Entrepreneurial Activity (TEA) rate among high-income economies
• Low business discontinuation rate, indicating stability and sustainability
• Predominantly opportunity-driven entrepreneurship, rather than necessity-based startups
This combination of favorable conditions and high-performance outcomes distinguishes the UAE among global peers.
The role of urban hubs in national performance
While the GEM report analyzes country-level data, urban centers such as Dubai serve as operational focal points for policy implementation, innovation networks, and regional business activity. Dubai’s infrastructure, capital accessibility, and cross-border connectivity facilitate firm-level growth, particularly among technology and service-sector firms targeting MENA and South Asia markets.
Conclusion
The UAE’s top position in the 2024 GEM NECI ranking highlights the strategic impact of integrated policymaking, human capital development, and cultural support for entrepreneurship. While further empirical study is needed to assess long-term firm outcomes and market competitiveness, the current data suggest that the UAE offers a replicable model for nations seeking to enhance entrepreneurial capacity.
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