The United Arab Emirates has secured top positions across multiple international rankings in 2025, highlighting a strategic shift from oil dependency toward a diversified, resilient economy. The achievements span economic stability, urban competitiveness, and entrepreneurship, though reports also note persistent structural challenges.
The UAE was named the world’s most economically stable country in the 2025 Best Countries report by U.S. News & World Report. This aligns with projected 2026 GDP growth near 5%, driven by non-oil sectors, and contained inflation around 1.8%. Security rankings further bolster its appeal; the UAE topped the Numbeo Security Index with a score of 85.2, reinforcing its image as a safe hub for investment and residence. These factors contributed to its placement among the top ten nations in the Global Soft Power Index.
Competitiveness and urban development are central to this performance. The country ranked in the top five globally in the IMD World Competitiveness Ranking 2025, citing regulatory reforms, digitised government services, and infrastructure. City-level progress is notable: Abu Dhabi rose to fifth globally in the IMD Smart City Index, up from 14th in 2020, while Dubai placed fourth in the Kearney Global Cities Resilience Index. Both cities scored highly on human capital and quality of life in Oxford Economics’ Global Cities Index, though housing affordability in prime districts was flagged as a concern.
Entrepreneurship remains a key pillar. The Global Entrepreneurship Monitor 2024/2025 ranked the UAE first worldwide for the fourth consecutive year, praising access to finance, government support, and ease of market entry. The “Projects of the 50” initiative, with a US$8.7 billion investment in innovation and SMEs, underpins this drive. Foreign direct investment confidence is strong; the UAE ranked second among emerging markets in Kearney’s 2025 FDI Confidence Index. Business registrations surged to over 1.3 million by mid-2025, up from 400,000 in 2020, following reforms allowing full foreign ownership in many sectors. Tourism also grew, with Abu Dhabi’s Sheikh Zayed Grand Mosque attracting 6.8 million visitors in 2025, 82% of them international.
These accolades reflect a coherent long-term strategy focused on institutional credibility, regulatory agility, and infrastructure. However, the same reports highlight constraints: reliance on expatriate labour, exposure to global capital flows, and affordability issues. Sustaining growth will depend on deepening economic complexity, enhancing social inclusion, and maintaining fiscal resilience amid global volatility. The UAE’s 2025 rankings signal a transition toward performance-based global recognition, but long-term success hinges on adaptive governance and inclusive development.
