The UAE has achieved another landmark milestone in its pursuit of global competitiveness, advancing to 16th place worldwide in the 2025 Government Support Index, a key indicator in the International Institute for Management Development’s (IMD) World Competitiveness Yearbook.
The achievement marks a remarkable leap of 27 places compared to its 43rd position in 2024, reflecting the country’s ongoing drive to strengthen fiscal efficiency and align public spending with sustainable growth goals.
The Government Support Index measures the value of government support as a percentage of gross domestic product and serves as a benchmark for the effectiveness of public resource management. It highlights a country’s ability to stimulate economic expansion through targeted spending policies that balance immediate needs with long-term priorities. For the UAE, the result underscores the effectiveness of reforms and strategies designed to ensure public financial management is not only prudent but also agile in responding to global economic shifts.
The Ministry of Finance said the progress reflects the efficiency of fiscal policies and the successful collaboration between the federal government and local financial departments to advance financial analysis tools, optimise resource allocation, and strengthen overall governance frameworks. It further noted that the UAE is committed to continuing these efforts, with a vision to join the world’s top ten in the index by 2026.
The ministry emphasised that enhancing the quality of financial data, improving transparency, and embedding sustainability practices have been central to the UAE’s efforts. These measures are aligned with national strategies, including the Sustainable Development Goals, and the UAE’s wider agenda to foster economic resilience, build global confidence, and sustain long-term prosperity.
This landmark result also reflects the growing trust of international institutions in the UAE’s governance framework. By developing precise financial reports and ensuring greater reliability of data, the country has been able to base its fiscal decisions on sound evidence, reinforcing stability and strengthening its capacity to respond effectively to international developments. According to the Ministry, transparency and disclosure remain key pillars of policy-making, providing businesses, investors, and stakeholders with confidence in the government’s direction and ability to deliver results.
Beyond the Government Support Index, the UAE also achieved strong positions in other metrics of the IMD World Competitiveness Yearbook 2025, cementing its role as one of the most competitive economies globally. The country ranked first worldwide in both venture capital availability and collected personal income tax as a percentage of GDP. It also secured second place in corporate profit tax rate and third in government budget surplus. The UAE ranked fourth globally in decline of indirect tax revenues and consumption tax rates, fifth in taxes collected on capital and property, and sixth in public finance. It also achieved seventh globally and first regionally in government expenditure as a percentage of GDP, and ninth in real growth of government consumption expenditure.
These global rankings highlight the UAE’s ability to deliver fiscal surpluses while simultaneously stimulating investment, entrepreneurship, and innovation. They also underline the country’s resilience in a volatile global environment, where many economies are grappling with budgetary constraints and declining competitiveness.
Officials at the Ministry of Finance said these results were the product of deliberate strategy and the collective effort of national teams. By embedding a results-oriented approach based on effective public spending and financial sustainability, the UAE has positioned itself as a leading global hub that can adapt to challenges while maintaining economic momentum. The ministry reaffirmed its goal of consolidating the UAE’s place among the top global economies through continual reforms and a commitment to excellence in financial governance.
The achievement also comes against the backdrop of broader initiatives to modernise and digitise financial systems. The Ministry of Finance is working to enhance data collection through advanced institutional information systems, improve coordination between federal and local finance entities, and ensure that public spending has a direct developmental impact. These reforms aim to raise the quality of services, build fiscal sustainability, and deliver outcomes that support both national priorities and global competitiveness.
The UAE’s climb in the Government Support Index and its performance across other indicators demonstrate how the nation continues to set benchmarks for efficiency, transparency, and innovation. With a vision firmly rooted in long-term growth and fiscal discipline, the UAE is strengthening its position as a model for economic management and a trusted global hub for investment, trade, and enterprise.
