UAE Participates in Global Ministerial Meeting on Small and Medium Enterprises in Johannesburg

UAE Leverages Global SME Summit to Showcase Its Entrepreneurship Dominance

The UAE has reinforced its position as a global entrepreneurship hub by participating in the first-ever Global Ministerial Meeting for Small and Medium Enterprises in Johannesburg, South Africa. With SMEs comprising 95% of all companies in the Emirates and employing 86% of the private sector workforce, the UAE's participation underscores its strategic commitment to maintaining its four-year streak as the world's top destination for entrepreneurship and small business development.

Strategic Positioning at a Critical Global Forum

The ministerial meeting, jointly organized by the UN's International Trade Centre (ITC) and South Africa's Department of Small Business Development, brought together over 700 participants including ministers, officials, private sector leaders, and entrepreneurs from more than 60 countries. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy and Tourism, represented the UAE at this landmark gathering.

The timing of this summit reflects growing global recognition that SMEs are the backbone of modern economies. With small and medium enterprises accounting for over 90% of businesses worldwide, countries are increasingly focused on creating supportive ecosystems that can help these companies overcome traditional barriers, particularly access to financing.

UAE's SME Success Story: A Model for Emerging Markets

Impressive Market Penetration

The UAE's SME statistics reveal a mature and diversified business ecosystem. The fact that small and medium enterprises represent 95% of all companies operating in the country, while employing 86% of private sector workers, demonstrates successful economic diversification beyond oil dependency. This level of SME integration rivals established economies like Germany and South Korea, where SMEs similarly dominate employment figures.

Infrastructure and Support Systems

The Emirates has built substantial infrastructure to support entrepreneurship, hosting more than 50 government and private business incubators and accelerators. This density of support organizations creates a competitive environment that benefits startups and growing companies through mentorship, funding access, and networking opportunities.

The country's success is validated by its four consecutive years at the top of the Global Entrepreneurship Monitor report for 2024/2025, ranking first among 56 economies evaluated for entrepreneurship conditions.

Policy Innovation and Market Access

Government Procurement Opportunities

One of the UAE's most significant policy innovations involves mandating that SMEs receive 10% of federal government procurement contracts. This approach mirrors successful programs in countries like the United States, where the Small Business Administration has similar set-aside requirements. Such policies provide guaranteed market access for smaller companies while fostering competition in government contracting.

Digital Platform Integration

The Ministry of Economy and Tourism has developed comprehensive digital platforms, including the "Entrepreneurship Hub" online portal, which connects entrepreneurs with training and financing opportunities. This digital-first approach aligns with the UAE's broader smart government initiatives and provides scalable support for the growing SME sector.

Regional and Global Implications

Middle East Leadership

The UAE's SME development model offers a blueprint for other Gulf Cooperation Council countries seeking to diversify their economies. Unlike traditional resource-dependent economies, the Emirates has created conditions where small businesses can thrive across multiple sectors, from technology and finance to tourism and logistics.

Investment and Trade Opportunities

For international investors and multinational corporations, the UAE's robust SME ecosystem presents partnership opportunities and potential acquisition targets. The high concentration of successful small and medium enterprises creates a pipeline for scaling operations across the Middle East and Africa regions.

Addressing Global SME Challenges

The Johannesburg summit focused heavily on financing challenges, which remain the primary obstacle for SME growth globally. The UAE's participation allows it to share successful financing models, including its Entrepreneurship Fund and various public-private partnership initiatives that have proven effective in providing capital access.

The emphasis on green economy transition and digital transformation at the summit aligns with the UAE's Vision 2071 and its commitment to becoming a global hub for sustainable business practices. This positioning could attract additional international investment and partnerships as companies worldwide seek to meet environmental and digital transformation goals.

Market Outlook and Strategic Implications

The UAE's active participation in global SME forums signals its intention to export its entrepreneurship model and attract international businesses to establish regional headquarters in the Emirates. This strategy complements the country's broader economic diversification goals and positions it as a bridge between European, Asian, and African markets.

For policymakers in emerging markets, the UAE's comprehensive approach—combining regulatory reform, digital infrastructure, guaranteed government contracts, and extensive incubation networks—provides a tested framework for SME development that can be adapted to different economic contexts.