GCC Economies Outpace Global Average in 2026 Economic Freedom Rankings

The economies of the Gulf Cooperation Council have strengthened their position in the 2026 Index of Economic Freedom, outperforming the global average as reforms across the region continue to improve business conditions, market openness and regulatory efficiency.

New data released by the GCC Statistical Center shows that the six-member bloc achieved an average score of 66.9, well above the global average of 59.9. The result reflects steady progress across the region as Gulf states pursue economic diversification and structural reform.

According to the report, all GCC member states recorded modest improvements or maintained relative stability between 2025 and 2026. While overall progress was consistent, the pace of reform varied from one country to another.

The United Arab Emirates retained its position as the highest-ranked GCC economy, placing 23rd globally with a score of 71.9. The ranking was supported by strong institutions, regulatory certainty and a business environment widely regarded as attractive to investors.

Oman posted the most significant improvement among GCC members. It climbed 19 places to rank 39th globally, achieving a score of 68.5. The sharp rise reflects accelerating reforms under Oman Vision 2040, particularly in areas such as regulatory efficiency, trade openness and efforts to diversify the economy beyond hydrocarbons.

Saudi Arabia also moved higher in the rankings, rising four places to 59th with a score of 65.4. The improvement underscores continued progress under the Kingdom’s Vision 2030 programme, which aims to expand non-oil sectors, attract foreign investment and modernise the business landscape.

Not all GCC countries advanced. Bahrain and Kuwait each slipped two places, ranking 57th and 90th respectively. Qatar recorded the largest decline in the bloc, falling four places to 31st. Despite these setbacks, the region as a whole continues to show a broad shift toward more competitive and open economic systems.

Outside the Gulf, Arab economies delivered mixed results. Morocco ranked 83rd, Jordan placed 94th, and Egypt remained much lower at 146th, highlighting varying levels of reform and economic openness across the wider region.

Globally, Singapore maintained its position as the world’s freest economy with a score of 84.4. Switzerland followed with 83.7, while Ireland ranked third at 83.3. Australia, Taiwan and Luxembourg rounded out the top six.

Published annually by The Heritage Foundation in partnership with The Wall Street Journal, the index assesses 184 economies based on factors including rule of law, government size, regulatory efficiency and market openness.

The GCC’s latest performance suggests that reform efforts are yielding results. As member states continue to modernise their economies and reduce reliance on oil revenues, the region is steadily enhancing its appeal to international investors and strengthening its role in the global economy.