Entrepreneurship ecosystem in the Arab World: Growth, innovation, and emerging challenges

Abstract

The entrepreneurship ecosystem in the Arab world has experienced significant growth and transformation, driven by government initiatives, venture capital investments, and a young, tech-savvy population. This article comprehensively analyzes the current state, key players, challenges, and opportunities within the Arab entrepreneurial landscape. Focusing on leading hubs such as the UAE, Saudi Arabia, and Egypt, the study highlights the role of national vision programs (e.g., UAE's Entrepreneurial Nation, Saudi Vision 2030) in fostering innovation and economic diversification. Key sectors like fintech, e-commerce, and health tech are examined alongside success stories such as Careem and Fawry, which underscore the region's potential. Despite progress, challenges persist, including regulatory hurdles, funding gaps, and cultural barriers, particularly for women entrepreneurs. The article also explores emerging trends such as digital transformation, regional integration, and youth entrepreneurship, offering recommendations to strengthen the ecosystem through policy reforms, education, and improved access to capital. By synthesizing regional data and case studies, this study contributes to understanding the Arab world's evolving entrepreneurial dynamics and potential to become a global innovation leader.