UAE Tops Global Economic Stability Ranking, Surpasses Major Economies in Business and Entrepreneurship

The United Arab Emirates (UAE) has been ranked the world’s most economically stable country, achieving a top position in a global index assessing the economic conditions of 89 countries. In addition to its stability, the UAE ranked highly in categories like ‘entrepreneurship’ and ‘open for business,’ further solidifying its reputation as a global business hub. The ranking, conducted by U.S. News & World Report, highlights the UAE’s favorable economic environment and transparency, factors that have helped it surpass long-time economic leaders like Switzerland, Germany, and Japan.

The report credits the UAE’s success to its minimal bureaucracy, low manufacturing costs, favorable tax policies, and a high level of transparency in government operations. The UAE’s constitution, which allows for freedom of religion, was also noted as an aspect of its appeal as a progressive destination in the Gulf region. Other countries in the top 10 included Canada, Australia, and Saudi Arabia.

The UAE achieved standout scores across several categories: 86.9/100 for global connectivity, 90.7/100 for entrepreneurship, and a full 100 for its favorable tax environment. The report also praised the UAE’s robust infrastructure, awarding it scores of 84/100 for physical infrastructure and 87/100 for digital infrastructure. Under ‘quality of life,’ the UAE earned an 86.9 for its job market and again received a perfect score of 100 for economic stability.

According to the CIA’s World Factbook, the UAE’s gross domestic product (GDP) per capita rivals those of Western Europe’s most advanced economies. Meanwhile, the World Economic Forum has rated the UAE as the most competitive economy in the Arab world, emphasizing its strategic advantage in the Middle East.

The UAE’s rapid economic development is part of a broader vision led by Minister of Economy Abdullah bin Touq Al Marri, who outlined an ambitious agenda to position the UAE as a leading global hub for the ‘new economy’ by the next decade. “We now have an ambitious vision to build a national economy based on knowledge and innovation,” Al Marri stated, noting that these developments aim to achieve comprehensive growth while contributing to the UAE’s sustainable development goals.

Economists expect the UAE’s strong economic trajectory to continue. Michael Bolliger, Chief Investment Officer for Emerging Markets at UBS Global Wealth Management, projects that UAE’s GDP growth will exceed 5% by 2025. The International Monetary Fund (IMF) also revised its growth outlook for the UAE, raising the forecast by 0.9% for next year due to sustained growth in non-oil sectors and stable crude prices. The October World Economic Outlook (WEO) now estimates the UAE’s GDP growth at 5.1% for 2025.

The World Bank’s recent projections align with this trend, estimating a 3.3% GDP growth for the UAE in 2024, rising to 4.1% in 2025. Despite diversification efforts, the UAE’s current account surplus is expected to decrease slightly from 9.2% of GDP in 2023 to 7.5% in 2024, as the country invests heavily in developing its non-oil sectors.

As the UAE continues to fortify its position as a leader in economic stability, global connectivity, and entrepreneurship, it remains a model for economic resilience and growth within the Arab world and beyond.