Six Arab Nations Feature in World's Top Startup Ecosystems: GEM 2024/2025 Report Highlights
A new report by the Global Entrepreneurship Monitor (GEM) for 2024/2025 has underscored the Arab world's rapidly growing prominence as a hub for entrepreneurship, placing six Arab nations among the world's leading startup ecosystems. Out of 56 global economies evaluated, only 17 surpassed the critical 5.0 threshold score on GEM's National Entrepreneurship Context Index (NECI), indicating a strong and supportive environment for startups. The presence of these six Arab countries, five from the Gulf Cooperation Council (GCC), highlights the region's successful transformation driven by strategic government initiatives and advanced ecosystem development.
UAE Leads the Charge: Number One Globally for Fourth Consecutive Year
The United Arab Emirates (UAE) continues its exceptional performance, ranking 1st globally for the fourth consecutive year with an impressive NECI score of 7.1. This sustained leadership reflects ongoing enhancements in its entrepreneurship ecosystem since 2021. The UAE excelled in 11 out of 13 key entrepreneurial framework conditions among high-income nations, showcasing particular strengths in entrepreneurial financing, ease of access to funding, supportive government policies (including the 2024 Commercial Companies Law allowing 100% foreign ownership), streamlined tax and regulatory systems, and extensive entrepreneurship programs at all educational levels. Initiatives like the "Projects of the 50" (valued at $8.7 billion) and a projected 4.7% GDP growth in 2025 further bolster its position.
Saudi Arabia, Bahrain, Oman, and Qatar Shine in Global Top Tier
Following the UAE's lead, several other Arab nations demonstrated robust entrepreneurial environments:
Saudi Arabia: Ranked 4th globally and 2nd regionally with a score of 6.3. The Kingdom's ambitious Vision 2030 continues to be a primary driver for its rapidly developing startup scene, attracting significant investment and fostering innovation.
Bahrain: Secured 7th place globally and 3rd regionally, scoring 5.8 points. Bahrain's Economic Vision 2030 emphasizes entrepreneurship as a cornerstone of sustainable growth, with tailored support in financing, licensing, and mentorship, including a special focus on empowering female entrepreneurs.
Oman: Achieved 8th position globally and 4th in the Arab world with a score of 5.7. This reflects an improved entrepreneurial climate aligned with its Vision 2040, with active government support for the SME sector through initiatives like the Entrepreneurship Card and the Land Utilization Program.
Qatar: Ranked 11th globally with a score of 5.6, driven by strong momentum in its non-energy private sector. The nation's third national development strategy (NDS3) is focused on strengthening economic diversification through public-private synergies and digitization efforts.
Jordan Recognized for Strong Entrepreneurial Framework
Rounding out the Arab representation among the top-scoring nations is Jordan, which ranked 18th globally with a NECI score of 5.0. While just outside the "top 17" in raw rank, its score meets the threshold for a strong entrepreneurial environment. Jordan's flexible policy environment and its pool of skilled talent make it a noteworthy and resilient player in the Middle East and North Africa (MENA) startup landscape.
Key Drivers Behind the Arab World's Entrepreneurial Ascent
The remarkable performance of these Arab nations is attributed to several key factors. Bold and proactive government initiatives, significant investments in developing advanced and supportive ecosystems, and strategic geographic positioning have been instrumental. There's a clear focus on high-potential sectors like fintech, e-commerce, and sustainability, which are attracting both entrepreneurs and investors. Policy reforms aimed at improving the ease of doing business, coupled with substantial national vision programs, are creating fertile ground for innovation and enterprise.
Understanding the Global Entrepreneurship Monitor (GEM) Framework
The Global Entrepreneurship Monitor (GEM) is the world's foremost study of entrepreneurship. Celebrating its 25th anniversary, GEM provides an annual assessment of entrepreneurial activity and ecosystems across a wide range of countries. Its National Entrepreneurship Context Index (NECI) evaluates the quality of a country's entrepreneurial environment based on expert assessments across 13 key "Entrepreneurial Framework Conditions," including aspects like finance, government policy, education, and infrastructure. A NECI score of 5.0 or above is considered indicative of a strong environment conducive to entrepreneurial success.
Implications for Regional Growth and Investment
The strong showing of these six Arab countries in the GEM 2024/2025 report signals a significant shift in the global entrepreneurial map. It reinforces the region's growing appeal as a destination for investment and a launchpad for innovative ventures. This recognition is likely to attract further global attention, talent, and capital, fueling continued growth in the startup sector and contributing to economic diversification and job creation.
Looking Ahead: Sustaining the Momentum
While the report highlights substantial progress, the journey continues. Sustaining this entrepreneurial momentum will require ongoing commitment to policy innovation, fostering a supportive culture, ensuring access to diverse funding sources, and continually developing local talent. The achievements of these Arab nations serve as an inspiration and a benchmark for others in the region and globally.
Source: ArabFounders.net