The United Arab Emirates has strengthened its position as one of the world’s leading destinations for innovators and entrepreneurs, ranking fifth globally and first across the Middle East and Africa in the 2026 Business Environment for Innovators Index issued by StartupBlink. The index evaluates how prepared countries are to enable entrepreneurs to establish, operate, and scale their businesses.

The ranking is based on an assessment of more than 125 countries, using over 30 quantitative indicators focused on ease of doing business, available incentives, institutional strength, and global perception of the business climate—measured specifically from the perspective of innovators rather than traditional economic performance metrics.

A Flexible and Diverse Ecosystem

According to the report, the UAE stands out as one of the most diverse and business-friendly environments in the Middle East and North Africa region. Its strong regulatory framework, high levels of transparency, and clear focus on facilitating global mobility have reinforced its status as a preferred destination for entrepreneurs and innovators.

The report highlights that the country’s strength lies in its solid institutions, efficient government services, and policies designed to reduce barriers for both local and international companies. This explains why many entrepreneurs—particularly self-funded founders—choose to establish their ventures in the UAE, attracted by streamlined procedures and operational incentives.

Strong Performance in Incentives and Taxation

The UAE delivered an outstanding performance in the incentives pillar, ranking second globally. It also secured second place worldwide in the taxation category, reflecting the competitiveness of its tax framework, which features relatively low rates on corporate income, personal income, and capital gains. The report identifies this tax competitiveness as a major factor attracting international innovators and investors.

In addition, long-term residency options, including the Golden Visa, have enhanced stability for investors, entrepreneurs, and skilled professionals. These initiatives provide greater confidence and security for building long-term projects within the country.

Key Role of Free Zones

The report also underscores the pivotal role of the UAE’s free zones in shaping its business environment. These zones offer full foreign ownership, simplified regulations, and seamless access to regional and global markets. Notable examples include Dubai Internet City, Abu Dhabi Global Market, and the Sharjah Research, Technology and Innovation Park.

Furthermore, the country’s innovation support ecosystem continues to expand through national institutions such as Hub71, Dubai Chambers, the Sharjah Entrepreneurship Center, and Emirates Development Bank. These entities provide funding, partnerships, and strategic support to help startups scale internationally.

A Regulatory Environment Ahead of Innovation Output

Interestingly, the UAE’s ranking in the Business Environment for Innovators Index surpasses its position in the Global Startup Ecosystem Index. This suggests that the country’s regulatory and institutional framework is, in some aspects, ahead of its current innovation output—offering a solid foundation for accelerated growth in the coming years.

Overall, the report concludes that the UAE represents a fast-growing business hub with a clear strategic vision, offering stability, competitive advantages, and ample room for expansion to entrepreneurs aiming for regional and global success.