The UAE's small and medium enterprise sector has grown at a remarkable pace, with the number of active SME licences now more than 140% higher than in 2020 and over 900% higher than at the turn of the millennium in 2000. The figures reflect the country's long-running push to build a stronger entrepreneurship base as part of its broader economic strategy.
The growth also lines up with the UAE's standing on the world stage. The country topped the Global Entrepreneurship Monitor 2025/2026 report for the fifth year running, and came in second globally for both the availability of entrepreneurial finance and how easily entrepreneurs can access it.
The figures were presented at a meeting of the UAE Council for Entrepreneurship, chaired by Abdulla bin Touq Al Marri, Minister of Economy and Tourism. The session looked at national initiatives and targets aimed at strengthening the competitiveness and long-term sustainability of the country's entrepreneurship and SME ecosystem.
The council also went over the outcomes of "The Emirates: The Startup Capital of the World," the national campaign launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, back in September 2025.
Bin Touq said entrepreneurship and SMEs sit at the heart of the UAE's economic development plans, describing them as central to growth, diversification and building a knowledge-based, innovation-led economy. He added that government policy has helped put in place an integrated set of programmes and incentives built around what entrepreneurs actually need to grow and scale their businesses.
According to him, the Council for Entrepreneurship acts as the national platform for coordinating these efforts, supporting a segment that makes up roughly 95% of all companies in the UAE and more than 85% of private-sector jobs — figures that match recent data from the Ministry of Economy and Tourism.
Bin Touq pointed to the results of the national entrepreneurship campaign as evidence that these policies and programmes are strengthening the UAE's reputation as a global hub for entrepreneurs and startups.
Among the outcomes reviewed at the meeting:
The council also discussed closer coordination between federal and local authorities on a national entrepreneurship strategy. The plan would bring together programmes and projects aimed at making the entrepreneurship ecosystem more competitive, supporting SME growth and sustainability, and building a more flexible business environment overall.
Talks also touched on governance, ongoing monitoring, and how the impact of these initiatives will be measured once they are rolled out.
The meeting also covered recommendations for aligning UAE entrepreneurship and SME policy with guidance from the Organisation for Economic Co-operation and Development (OECD). These recommendations centre on four areas: access to finance, innovation, internationalisation and measurement, alongside continued work on the legislative and regulatory framework.
Council members discussed how to prioritise these recommendations, how implementation should be split between federal and local authorities, and how the roadmap for the next phase should be structured — drawing on international best practice to strengthen the environment SMEs operate in.
Progress on the "Mobile Accelerators in Villages" initiative was also reviewed. The programme is designed to bring services and support directly to entrepreneurs in villages and other targeted areas, helping them access the resources needed to grow their businesses.
Members discussed ways to expand the initiative's reach and tackle the practical challenges entrepreneurs in these areas face, with proposed support covering simplified licensing procedures, access to business locations and financing, incubation programmes, and stronger connections to market outlets and sales channels — all aimed at helping entrepreneurs push past growth barriers and build more sustainable businesses.
This sustained rise in SME licensing reflects just how much room the UAE continues to offer entrepreneurs, whether through mainland or free zone company formation. With government policy actively geared toward supporting SMEs, now remains a strong window for founders considering a business setup in Dubai or elsewhere in the UAE, particularly with the right guidance on choosing the correct licence and jurisdiction from the start.
Source: Adapted from reporting by Gulf News.