HE Alia Al Mazrouei On The UAE's Entrepreneurial Edge

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If the flurry of announcements coming from the UAE’s entrepreneurial arena of late is any indication, then this is an ecosystem that’s certainly thriving – but its future looks set to be even brighter.

At least, that’s what HE Alia Bint Abdulla Al Mazrouei predicts – and given the vantage point she has in her role as the UAE Minister of State for Entrepreneurship, we at Inc. Arabia are inclined to take her at her word.

Speaking to us at the 2025 edition of Investopia in Abu Dhabi, Al Mazrouei highlighted the UAE’s National Agenda for Entrepreneurship as indicative of the future direction of the country’s startup ecosystem.

“The National Agenda for Entrepreneurship is our roadmap for facilitating the UAE’s transition into a truly entrepreneurial nation by 2031,” Al Mazrouei said. “It includes 29 initiatives aimed at enhancing the business environment and entrepreneurial culture in the UAE, and an integrated package of incentives that enables the country to increase the number of its startups to reach one million, incubating 10 unicorn startups, and achieving a strong partnership between the public and private sectors.”

The UAE has, of course, already taken concrete steps to achieve these goals over the past few years. For instance, Al Mazrouei pointed out the country’s notable undertakings in this regard include the NextGenFDI initiative, which, with the intention to boost foreign direct investment (FDI) in the country, aims to attract leading tech companies from around the world to the UAE, as well as the Future 100 initiative, which has, since 2023, been annually recognizing 100 SMEs that are making a positive contribution to shaping the UAE’s future economy.

A more recent initiative is the UAE’s Riyada Fund, which is a government-led program that aims to foster entrepreneurship and strengthen the country’s SME sector through financial support, business development services, networking opportunities, and access to international markets. Al Mazrouei revealed that the Fund has allocated incentives totaling AED300 million to encourage university graduates to pursue entrepreneurial ventures, thereby fostering an entrepreneurial mindset and culture across all segments of society.

Besides the Riyada Fund, Al Mazrouei also highlighted the National Program for Small and Medium Enterprises, which was launched by the UAE Ministry of Economy with the aim of enabling Emirati entrepreneurs and SME owners to establish and develop their businesses. The program provides them with the necessary expertise, technical, administrative and training support, while also coordinating with federal and local government agencies and the private sector to provide benefits and incentives for their businesses, as well as supporting their products and services.

“In addition, the Youth Entrepreneurship Council serves as a platform for empowering young entrepreneurs to keep pace with the latest industry trends and cultivate the culture of self-employment among them,” Al Mazrouei continued. “Apart from these, a wide array of programs has been launched in partnership with the private sector to promote entrepreneurship in the country, including the Entrepreneurial Nation. Its Skill Up Academy track aims to equip the UAE population with the necessary entrepreneurial skills and mindset through a broad range of educational programs, initiatives, and learning opportunities.”

UAE Minister of State for Entrepreneurship HE Alia Bint Abdulla Al Mazrouei. Image by Inc. Arabia.

But that’s not all, of course – from the provision of “golden visas” for entrepreneurs in the country, to allowing companies in a variety of sectors to have full foreign ownership, Al Mazrouei pointed out that the UAE’s entrepreneurial ecosystem has been “greatly enhanced” through several such offerings and incentives. “As a result, over the last few years, the UAE has witnessed a remarkable 166 percent increase in the number of SMEs, contributing to a 3.6 percent gross domestic product (GDP) growth in the first half of 2024 alone,” Al Mazrouei added. “The total number of business licenses registered in the UAE stands at a record high of nearly 1.1 million today.”

Such stats add to the global recognitions that the UAE has garnered for itself in the recent past as well. For one, the UAE was ranked first for the third consecutive year in the Global Entrepreneurship Index for 2023-2024, with the country being especially noted for factors like financing, ease of market entry, and government support. The report also pointed to the UAE as being the best global destination for starting and operating new business ventures with a score of 7.7, which, Al Mazrouei proudly pointed out, is the highest ever recorded in the history of the report.

Furthermore, Al Mazrouei highlighted the fact that the UAE also ranked seventh globally in the International Institute for Management Development’s (IMD) World Competitiveness Yearbook for 2024, achieving second place in the “economic performance” pillar as well as 10th in “business efficiency,” which serves as a reiteration of the country’s robust economic growth, pro-business policies, and thriving investment climate. And even as the country leaves no stone unturned to make it a conducive arena for entrepreneurship, Al Mazrouei noted that the UAE’s business-friendly environment, with its streamlined regulations, pro-business policies, and strong intellectual property protections, has also cultivated investor confidence, thereby enhancing its attractiveness as an FDI destination.

“According to the World Investment Report 2024 issued by the United Nations Trade and Development body, the value of FDI inflows to the UAE in 2023 amounted to US$30.7 billion, compared to $22.7 billion in 2022, representing a 35 percent increase in inflows,” Al Mazrouei shared. “This remarkable increase in investments flowing into the UAE's economy has resulted in the country advancing to 11th place globally in attracting foreign investments, climbing 10 spots compared to 2022. The UAE was also ranked first in the West Asia and North Africa region for attracting FDI inflows, capturing 31.1 percent of the total. This achievement underscores the UAE's position as a regional leader in attracting investment, and fostering a competitive business environment. Meanwhile, the total value of Emirati investments abroad, encompassing both government and private sectors, have reached a staggering $2.5 trillion.”

But as amazing as these achievements are, the UAE has never been a nation that rests on its laurels, and that would explain its continued efforts to further bolster its entrepreneurial ecosystem. “Building a resilient and adaptive entrepreneurship ecosystem requires a mix of policy changes and strategic partnerships,” Al Mazrouei shared. “These changes should address the structural, social, financial, and environmental aspects of entrepreneurship. The most prominent ones revolve around the simplification of regulations and reducing bureaucracy, as well as access to financing, education and training, and infrastructure for digital transformation.”

At the same time, Al Mazrouei noted that the UAE is making it a point to continue to enhance its economic openness and strengthen ties with partners around the world, which would unlock new markets for the country’s business community, as well as enhance their dialogues with their foreign counterparts. “Moreover, the policy changes and legislative amendments we introduce are developed in consultation with a wide array of partners from both public and private sectors,” Al Mazrouei added. “Our dialogue with them helps us understand the real challenges they face on the ground, and develop policies accordingly.”

Such efforts by the government make it clear why the UAE stands out as a destination of choice for entrepreneurs from around the world, but for those who haven’t yet experienced the nation’s offerings, Al Mazrouei urges them to look at it as more than a place for commerce. “I encourage businesses from around the world to consider the UAE not just as a location for business, but as a vibrant community where innovation, culture, and opportunity converge,” Al Mazrouei said. “The supportive regulatory environment, access to a diverse consumer market, and substantial investment opportunities make it an ideal place for entrepreneurs to turn their ideas into reality.”

Pictured on the lead image is UAE Minister of State for Entrepreneurship HE Alia Bint Abdulla Al Mazrouei. Image by Inc. Arabia.