Dubai's skyline offers a stunning panorama. — AFP file

The UAE has secured the top spot as the world's most economically stable nation among 89 countries evaluated. This recognition also highlights the UAE's strong performance in categories like 'entrepreneurship' and 'open for business.' The ranking, compiled by US News and World Report, cites the UAE's low manufacturing costs, advantageous tax policies, streamlined bureaucracy, lack of corruption, and transparent government practices as key factors that have enabled it to surpass traditional economic powerhouses.

The US publication's report notes, “The UAE is one of the Gulf's most liberal countries, with a constitution that guarantees freedom of religion.” Other countries in the top 10 include Switzerland, Germany, Canada, Japan, Australia, Sweden, Denmark, Netherlands, and Saudi Arabia. The UAE scored 86.9 out of 100 for global connectivity under the 'entrepreneurship' category and achieved a score of 90.7 for being entrepreneurial. Additionally, the UAE received high marks for its well-developed infrastructure (84/100) and digital infrastructure (87/100). The country scored a perfect 100 for its favorable tax environment and 86.9 for having a robust job market under the 'quality of life' subhead.

The report highlights that the UAE’s per capita GDP is on par with leading Western European nations, according to the CIA’s World Factbook. The World Economic Forum has also named the UAE the most competitive economy in the Arab world. Abdullah bin Touq Al Marri, Minister of Economy, envisions the UAE becoming a global hub for the new economy by the next decade, driven by recent legislative and economic policy advancements.

Michael Bolliger, UBS Global Wealth Management's chief investment officer for Emerging Markets, predicts the UAE's GDP growth will exceed 5% by 2025. The International Monetary Fund recently revised its growth forecast for the UAE upwards by 0.9% for next year, attributing this to robust growth in non-oil sectors and stable crude prices. The World Bank projects the UAE’s GDP growth at 3.3% in 2024, rising to 4.1% in 2025, despite an expected decrease in the current account surplus from 9.2% of GDP in 2023 to 7.5% in 2024.

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