Entrepreneurial ambition among young people in the Mena region is on a sharp rise, with 46 per cent of workers expressing interest in starting their own business. Nowhere is this intent more visible than in the UAE, where a dynamic ecosystem of startups and small and medium enterprises (SMEs) is enabling youth to turn vision into reality.
A new PwC Middle East report, Future Ready Mena, highlights the urgent need to strengthen entrepreneurial capabilities across the region. It notes that the survival rate of small businesses doubles when guided by experienced mentors, and that mastery of emerging technologies — from artificial intelligence to digital commerce platforms — has become critical as the global workforce braces for the disruption of more than a billion jobs by 2030.
Recommended For You
Fit4It unveils CNS Reset™ Programme in Dubai to combat fatigue, weight gain, and burnout
Venus Williams makes a comeback at 45, wins doubles match
CFI welcomes Maria Sharapova as global brand ambassador
Karma Developers unveils a striking new chapter in Dubai’s architecture and urban living
Microsoft alerts businesses, governments of server software attack
The UAE’s record in fostering entrepreneurship is already world‑leading. According to the 2024–2025 Global Entrepreneurship Monitor (GEM), the nation ranks first globally for the fourth consecutive year as the best destination for startups and SMEs, surpassing 55 other economies. It leads in 11 out of 13 indicators that measure institutional support for entrepreneurship, including access to financing, regulatory ease, integration of entrepreneurship in education, and supportive cultural attitudes toward enterprise creation.
SMEs are a cornerstone of the UAE’s non‑oil economy, numbering around 557,000 and contributing an estimated 63.5 per cent of non‑oil GDP. That share is expected to rise as the nation pushes towards its target of one million SMEs by 2030, driven by an expanding digital economy, government funding programmes, and improved access to financial services. The third edition of the Mastercard SME Confidence Index shows that 91 per cent of SMEs in the UAE are optimistic about their business prospects this year, while 90 per cent expect revenue to match or exceed 2024 levels.
The country’s startup scene is equally vibrant. More than 5,600 active startups operate in the UAE, the highest number in the GCC. In May 2025 alone, these ventures attracted nearly $87 million in funding across 14 deals. Abu Dhabi’s Hub71 has become a key catalyst, hosting over 260 startups as of mid‑2023 and offering equity‑free incentives, investor introductions, and global market access. In Sharjah, the Sheraa entrepreneurship centre has helped over 450 startups raise $297 million in capital and generate $372 million in revenue, with more than half being women‑led.
This growth in entrepreneurial activity is supported by evolving education and cultural attitudes. Surveys among Emirati university students show a strong correlation between self‑confidence, institutional support, and entrepreneurial intention. While public sector careers remain attractive, a growing share of youth see business ownership as a viable, even preferred, career path.
PwC’s report recommends that governments, educators, and the private sector collaborate to expand structured entrepreneurship education, develop mentorship networks, empower women entrepreneurs, and promote technological proficiency. Programmes such as university incubators, government‑backed accelerators, and industry‑linked training are critical in translating youth ambition into scalable enterprises.
The UAE already has a track record of producing high‑growth, tech‑driven ventures. Success stories like Talabat, Tabby, Swvl, and Tamara demonstrate how digitally native business models can rapidly scale when built on a foundation of entrepreneurial agility and strong market understanding. The World Economic Forum notes that Gulf states benefit from a maturing startup environment, strong investment flows from sovereign wealth funds, and regulatory innovation that reduces barriers for new businesses.
Nearly 49 per cent of GEM’s global respondents cite fear of failure as a barrier to launching a business, a sentiment shared by many in the region. But policymakers and investors in the UAE are addressing these concerns with simplified licensing processes, early‑stage funding opportunities, and structured mentoring support designed to build resilience among young founders.
The convergence of strong youth ambition, robust ecosystem frameworks, and institutional backing positions the UAE as a model for inclusive, sustainable entrepreneurial growth in the Mena region. Yet experts stress that maintaining this momentum will require deeper mentorship engagement, embedding entrepreneurship across all levels of education, and ensuring equal opportunities for women and underrepresented groups.
As PwC Middle East’s education lead Roland Hancock points out, entrepreneurial capabilities extend far beyond traditional business knowledge. “It’s about adaptability, creativity, problem‑solving, and digital fluency. By investing in these capabilities now, the region can unlock the full potential of its youth and establish itself as a global hub for innovation and industry leadership.”
issacjohn@khaleejtimes.comis Managing Editor at media and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.
