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UAE is world’s most ‘economically stable’ country

Country also ranked high for ‘entrepreneurship’ and ‘open for business’

Published: Mon 28 Oct 2024, 5:25 PM

By
Issac John

A view of the skyline in Dubai. — AFP file

The UAE has been named the world’s most economically stable country in a ranking of 89 countries. The Arab world’s second-largest economy also ranked high for ‘entrepreneurship’ and ‘open for business.’

The ranking by US News and World Report attributes the UAE’s success to its low manufacturing costs, favorable tax environment, minimal bureaucracy, absence of corruption, and transparency in government practices, allowing it to outpace long-time economic leaders.

“The UAE is one of the Gulf’s most liberal countries, with a constitution that allows for freedom of religion,” the US publication said its report. Switzerland, Germany, Canada, Japan, Australia, Sweden, Denmark, Netherlands and Saudi Arabia were the other countries in the top 10.

The UAE scored 86.9/100 points for connectivity to the rest of the world under the ‘entrepreneurship’ category. The country also achieved a score of 90.7 for being entrepreneurial. The UAE also scored high for having a well-developed infrastructure (84/100) and digital infrastructure (87/100).

The UAE scored 100 for having a favourable tax environment. Under ‘quality of life’ subhead, the UAE achieved a score of 86.9 for having a good job market, and a full 100 for being economically stable.

“The UAE’s per capita gross domestic product is on par with those of leading Western European nations, according to the CIA’s World Factbook. And the World Economic Forum has named the country the most competitive economy in the Arab world,” the report said.

Abdullah bin Touq Al Marri, Minister of Economy, has said the UAE will become a leading global hub for the new economy by the next decade due to legislative developments and economic policies adopted by the country over the past few years. “We now have an ambitious vision, which is to build a national economy based on knowledge and innovation by the next decade, to become a strong driver in achieving comprehensive development for the UAE, and to contribute in achieving the sustainable development goals,” he said.

Michael Bolliger, chief investment officer of Emerging Markets at UBS Global Wealth Management, stated that the UAE's GDP growth is expected to surpass 5 per cent in 2025. Last week, the International Monetary Fund has raised UAE’s growth forecast for next year by 0.9 per cent on the back of strong growth in non-oil sectors and steady crude prices. According to the October edition of World Economic Outlook (WEO), the UAE’s GDP is projected to grow 5.1 per cent in 2025 compared to the 4.2 per cent it projected in April's edition of WEO.

The World Bank recently projected the UAE’s GDP growth at 3.3 per cent in 2024, increasing to 4.1 per cent in 2025. According to the report, the UAE’s current account surplus is expected to decrease to 7.5 per cent in 2024, down from 9.2 per cent of GDP in 2023, despite ongoing diversification efforts.