UAE SME Licences Soar Over 900% in Two Decades, Reinforcing Global Entrepreneurship Lead

The UAE's small and medium-sized enterprise (SME) sector has experienced significant expansion, with the number of active SME licences increasing by over 140% since 2020 and more than 900% since 2000. This robust growth underpins the nation's ongoing strategy to bolster its entrepreneurship ecosystem.

This surge coincides with the UAE's consistent top-tier global performance in entrepreneurship. For the fifth consecutive year, the country ranked first globally in the Global Entrepreneurship Monitor 2025/2026 report. Beyond that, it secured the second position worldwide for both entrepreneurial finance and the ease of access to such funding.

These figures were reviewed during a recent meeting of the UAE Council for Entrepreneurship, chaired by Abdulla bin Touq Al Marri, Minister of Economy and Tourism. The council examined national initiatives designed to enhance the competitiveness and long-term sustainability of the country's entrepreneurship and SME environment. SMEs are a critical component of the UAE economy, constituting approximately 95% of all operating companies and providing over 85% of private-sector jobs.

Impact of National Campaigns

The meeting also assessed the outcomes of "The Emirates: The Startup Capital of the World," a national campaign launched in September 2025. Key achievements include:

• Training and qualification for over 400 Emirati men and women.
• Support for 214 citizens through the Riyada programme, which reported a 97% satisfaction rate.
• Launch of 41 government initiatives across nine areas, involving 10 partner entities in five emirates.
• Generation of AED 202 million in government procurement, comprising AED 78.6 million from 55 contracts with seven government entities and AED 123.4 million at the federal level.
• Registration of 405 new businesses in the suppliers' registry.
• Incubation support for 30 real estate companies.

Future Strategy and International Cooperation

The council further discussed closer cooperation between federal and local authorities to develop a comprehensive national entrepreneurship strategy. This strategy will focus on enhancing the ecosystem's competitiveness, supporting SME growth, and creating a flexible business environment. The UAE is also collaborating with the Organisation for Economic Co-operation and Development (OECD) to align its entrepreneurship policies across four main areas: access to finance, innovation, internationalisation, and measurement, alongside legislative and regulatory development. Initiatives like "Mobile Accelerators in Villages" are also being expanded to provide entrepreneurs in remote areas with easier access to services, simplified licensing, business locations, financing, and market connections.