The UAE achieved a major milestone in global competitiveness, advancing to 16th place worldwide in the 2025 Government Support Index, one of the key indicators featured in the International Institute for Management Development’s (IMD) World Competitiveness Yearbook.
The ranking represents a remarkable 27-place improvement from the UAE’s 43rd position in 2024.
The Government Support Index measures the value of government support as a percentage of gross domestic product (GDP).
UAE competitiveness
It serves as a benchmark for the efficiency of public financial resource management and a country’s ability to stimulate economic growth through effective public spending.
The Ministry of Finance said the UAE’s rapid rise reflects the efficiency of its fiscal policies and ongoing efforts to strengthen the effectiveness of public expenditure.
This progress has been achieved through close coordination between the federal government and local financial departments, advancing financial analysis tools and optimising resource allocation.
The Ministry added that continued improvements in financial data quality, sustainability practices, and fiscal balance are central to the UAE’s long-term strategy.
These measures not only enhance global competitiveness but also support the country’s commitment to the UN Sustainable Development Goals.
The Ministry said: “We aspire to rank among the world’s top ten in the Government Support Index by 2026, guided by the vision of our wise leadership and the dedication of our national teams.
“We will continue to embed a results-driven approach based on effective public spending and financial sustainability to drive the nation’s growth.”
According to the IMD Yearbook, the UAE ranked among the world’s top 10 in several competitiveness indicators, underscoring its strong fiscal framework:
- 1st place globally in both venture capital and collected personal income tax as a percentage of GDP
- 2nd in corporate profit tax rate
- 3rd in government budget surplus/deficit ($bn)
- 4th in both decline in indirect tax revenues and decline in consumption tax rate
- 5th in taxes collected on capital and property
- 6th in public finance
- 7th globally, 1st regionally in government expenditure as a percentage of GDP
- 9th in real growth of government consumption expenditure
These achievements highlight the UAE’s ability to balance fiscal transparency, economic sustainability, and global competitiveness, reaffirming its position as a leading international hub for investment and innovation.
