Did you know that a staggering 98 per cent of entrepreneurs in the UAE are confident that their businesses are set to flourish? A similarly high proportion (95 per cent) expect their personal wealth to increase over the coming years.
The latest HSBC Global Entrepreneurial Wealth Report, which surveyed 1,800 entrepreneurs across 10 international markets, found that company owners in the Emirates see strong investment portfolios, business opportunities, technological advancements, diversification activities and their own abilities as significant reasons for optimism.
This sentiment certainly appears to be mirrored by the levels of investment attracted by local startups in 2024. New ventures in the Emirates secured more than $887 million of funding in the first 11 months of last year, according to data published by Wamda.
So, what is causing such widespread confidence in our nation’s startup community, and why are UAE entrepreneurs among the most optimistic on the planet? Here are my thoughts…
Unparalleled support
The level of support available to UAE startups is one of the primary contributing factors, in my opinion. Abu Dhabi’s Hub71, for example, helped its startup community raise more than $400 million and create almost 1,000 jobs within its first three years of operations. This global tech ecosystem also launched a new initiative to encourage fresh inflows of funding in December 2024, offering financial incentives worth more than $40,000 as part of its Angel Investor Support Package.
New ventures are taken just as seriously here in Dubai. For instance, the Mohammed Bin Rashid Establishment for SME Development (Dubai SME) has facilitated the formation of more than 18,000 local enterprises since its launch in 2002, while delivering guidance, training and mentoring services to over 100,000 Emirati entrepreneurs. Meanwhile, the Dubai Chamber published its inaugural Dubai Startup Guide in Q3 2024, a comprehensive resource designed to assist entrepreneurs and startups in navigating the process of establishing their businesses in the emirate.
Encouragingly, this focus on support is also reflected at a federal level. Last month, the UAE Cabinet approved the establishment of the Emirates Entrepreneurship Council, allocating more than $81 million to inspire and support our nation’s next generation of entrepreneurs.
Put simply, few nations on earth can compete with the UAE when it comes to facilitating new business, so it is little wonder that entrepreneurs in our country are feeling so optimistic about the future.
A thriving business ecosystem
In addition to the impressive levels of support on offer, entrepreneurs in the UAE benefit from a thriving business ecosystem and the investor-friendly environment cultivated by our nation’s leaders. This is especially true in Dubai, where foreign direct investment (FDI) law allows for 100 per cent ownership. Our emirate has also signed bilateral investment protection agreements with 109 countries and bilateral double-taxation avoidance agreements with 142 countries in a bid to attract the brightest and most innovative talent from around the world.
The UAE’s strategic location also represents a major advantage for domestic businesses. Two-thirds of the global population lives within a four-hour flight of our country, and three-quarters of the world is located within eight hours. The combination of mainland and free one options is an equally important drawcard when it comes to attracting entrepreneurs, catering to both locally and foreign-owned companies.
US News & World Report’s 2024 Best Countries ranking named the UAE as the nation with the greatest potential for future growth, so it is unsurprising that local entrepreneurs have such a bright outlook.
Unrivalled quality of life
Last but not least, I believe that quality of life is a major driver of optimism among UAE entrepreneurs. The Emirates ranked third in the world in InterNations’ 2024 Quality of Life Index, performing well across the board. The researchers highlighted our nation’s local culture, nightlife and culinary variety for their expat appeal.
While such factors are not intrinsically linked to business opportunities, few would deny that the lifestyle and amenities offered by a location play a pivotal role in encouraging aspiring business leaders to relocate and establish new companies. Add to this the UAE’s robust transport infrastructure, smart public services and world-leading levels of safety and security, and it is easy to see why entrepreneurs are so comfortable operating in the Emirates.
Ultimately, our country’s startup community has every reason to be optimistic. For more than half a century, Emirati leaders and policymakers have demonstrated a keen understanding that entrepreneurs represent the backbone of our national economy, and it is heartening to see that their commitment to business innovators is stronger than ever.
As a proud Emirati, I have been fortunate enough to spend my life in a nation that values and cultivates entrepreneurial spirit. However, even if I had been born elsewhere, I would still choose to start a business in the UAE.
