UAE Minister Highlights Role of SMEs in Economic Growth

Alia Al Mazrouei:

• “Entrepreneurship is a key pillar of the UAE’s economic diversification and global competitiveness.”
• 16 government entities support the growth of small and medium enterprises (SMEs) in the UAE.
• UAE ranks 17th globally as a hub for unicorn startups.

 Alia bint Abdullah Al Mazrouei, UAE Minister of State for Entrepreneurship, emphasized the critical role of startups and SMEs in driving economic diversification during a panel discussion at the World Government Summit 2025 in Dubai.

The session, titled “How Entrepreneurship Fuels Economic Growth and Prosperity,” featured Hon.

Manoa Kamikamica, Fiji’s Deputy Prime Minister and Minister of Cooperatives, SMEs, and Communications.

Discussions focused on:

• The role of SMEs in economic expansion and job creation.
• Policies and initiatives to enhance startup competitiveness.
• The impact of digital tools, AI, and automation on entrepreneurship.
• The importance of attracting and scaling unicorn startups.
• Entrepreneurship: A Strategic Pillar for Economic Growth

Alia Al Mazrouei stated:”The entrepreneurship and SME sector is a strategic pillar of the UAE’s vision to become one of the world’s top economies by the next decade. SMEs already contribute 63.5% of the UAE’s non-oil GDP.”

She highlighted the UAE’s integrated national entrepreneurship framework, which fosters innovation, supports Emirati entrepreneurs, and enhances the global competitiveness of startups.

The UAE currently hosts over 50 government and private business incubators and accelerators.

The Minister outlined several initiatives launched in November 2024 to boost the UAE’s startup ecosystem: “Riyada Fund” – A AED 300 million fund providing financial support, mentorship, and industry networking opportunities for Emirati-led startups.

“UAE Entrepreneurship Council” – A national body aligning government efforts to strengthen SMEs.

“100 Companies of the Future” & “Investopia” – Programs fostering innovation-driven startups in sustainable and emerging sectors.

She also highlighted the government’s goal of increasing SME participation in public sector contracts to 10%.

UAE: A Thriving Hub for Unicorn Startups

 Alia Al Mazrouei emphasized the UAE’s strong position as a global startup hub, ranking 17th worldwide for unicorn startups.

“The UAE has become a launchpad for billion-dollar startups. Companies like Careem, SWVL, and Dubizzle originated in our ecosystem, and today, the country is home to 11 unicorns valued at over $1 billion each.”

The Minister also stressed the role of AI and digital transformation in accelerating SME success, positioning the UAE as a global leader in AI-driven innovation and entrepreneurshipر