The figures are in line with the 13 per cent increase in the number of business licences issued in 2014 by the Department of Economic Development (DED) in Dubai. The total number of licences increased to 21,358 in 2014, against 18,848 in 2013, with industrial licences showing the biggest increase at 27 per cent, followed by commercial and tourism licences at 16 per cent each, and professional licences at five per cent. The UAE was the only country in the Mena region to make it on UHY's business creation list, highlighting the optimism that is prevailing on the domestic economic front, and investor interest in pursuing new opportunities across various industry sectors.

The UHY study also showed that new business creation in China, which placed first on UHY's list, is outpacing the rest of the world despite its economic slowdown. The research revealed that the number of new companies created in China in 2014 was nearly double the number created in 2010, increasing from 811,100 to 1,609,700 per year. Following closely behind China is the UK, where new business creation is accelerating more quickly than in any of its Western rivals. The number of newly established businesses in the UK increased from 385,741 to 581,173 per year.

Third in the study was India, which saw a 46 per cent increase in the number of start-ups. The Bric economies averaged a 42 per cent increase in the number of new businesses created over the same period.

"The next few years are not going to be without their own challenges, and governments globally need to find ways to help these new start-ups to grow into successful businesses and even the next generation of multi-nationals," said Bernard Fay, chairman of UHY. "Alternative finance has been a major bonus to start-ups. As it grows in importance and profile, regulators face the significant question of how to find a balance in their regulatory approach to the sector that gives confidence to potential investors, but does not stifle innovation." UHY's study also shows that the Western European economies tended to see a bigger increase in the number of new business created, compared to other developed economies. The UK, Italy, Germany, and France had increases in the number of new businesses higher than the G7 average of 31 per cent.

By contrast, the increase in new business creation over the period was 11 per cent in the USA, seven per cent in Japan, and four per cent in Canada. Australia also beat the G7 average, with a 41 per cent increase in the number of new businesses created. UHY explains that the severity of the financial crisis and recession in many European countries prompted governments to take significant steps to encourage business creation. Common measures included changes designed to reduce the amount of tax due from start-ups and small companies, and to simplify the bureaucratic burden.