Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
The UAE has climbed two spots in the latest Global Startup Ecosystem Index 2025, ranking 21st globally and securing its position as the top-ranked Arab country for entrepreneurship.
This marks the sixth consecutive year of advancement for the UAE in the global index, reinforcing the nation’s steady rise as a premier destination for startups.
The annual index, published by global research platform StartupBlink, evaluates over 1,000 cities and 100+ countries based on ecosystem strength, infrastructure, startup activity and funding.
Since 2020, the UAE has rocketed up the rankings, moving from 43rd to 21st in just five years. A leap that, the report says, was driven by aggressive investment, regulatory reform and public-private collaboration.
The UAE also remains the number one startup ecosystem in the Arab League, although the competition is intensifying.
The UAE’s ecosystem is especially strong in fintech, where it ranks 14th globally, and Blockchain, where it holds an impressive 7th position worldwide.
The report said these sectors have been key to establishing the country’s digital economy as one of the most dynamic in the MENA region.
Dubai continued to lead the UAE’s innovation surge, ranking 44th globally, a jump of six places from last year. Over the past six years, Dubai has climbed an astonishing 95 spots, thanks to aggressive funding initiatives like the Dubai Future District Fund and infrastructure hubs such as Dubai Internet City.
Meanwhile, Abu Dhabi is quickly closing the gap. The capital surged 20 spots to 175th globally, driven by a nearly 50% ecosystem growth rate. The report noted Initiatives like Hub71 and ADQ’s DisruptAD for their vital role in fostering a competitive ecosystem, especially in biotech and fintech.
Sharjah also made headlines, recording the biggest jump among UAE cities. It soared 98 spots to 762nd place globally, with a growth rate of nearly 46% - a sign of the emirate’s emerging potential. The report said institutions like the Sharjah Entrepreneurship Centre (Sheraa) and the Sharjah Research, Technology and Innovation Park are key to this momentum.
Several high-profile startups were highlighted as examples that cemented the UAE’s credibility on the global stage. Careem, the region’s first unicorn, set the precedent with its $3 billion acquisition by Uber.
Others like Kitopi, Tabby, G42 and Andalusia Labs have joined the unicorn club, while global tech firms such as Telegram have chosen to relocate their headquarters to Dubai, which the report said underscored the UAE’s strategic appeal.
Moreover, the report highlighted the introduction of founder-friendly policies including long-term Golden Visas, flexible business licensing, and regulatory reforms like the updated bankruptcy law as key to helping attract and retain talent.
It noted that even the introduction of a 9% corporate tax in 2023 had not seemingly deterred investment, with the rate still among the most competitive globally.
The report said that despite challenges such as the high cost of living and legacy regulations, the UAE’s startup sector shows no signs of slowing.
