UAE Advances To 16th Place In Global Government Support Index For 2025

The United Arab Emirates has made significant progress in global competitiveness, moving to 16th place in the 2025 Government Support Index. This is a notable improvement from its 43rd position in 2024. The index, part of the International Institute for Management Development’s World Competitiveness Yearbook, evaluates government support as a percentage of GDP, highlighting efficient public financial management and economic growth stimulation through effective spending policies.

The Ministry of Finance emphasised that this advancement reflects the UAE’s effective fiscal policies and efforts to enhance public expenditure efficiency. Collaboration between federal and local financial departments has been key in improving financial analysis tools and optimising resource allocation. The Ministry is committed to further strengthening the UAE's position by enhancing financial data quality and promoting sustainability practices aligned with global competitiveness goals.

The Ministry highlighted that international institutions increasingly trust the UAE’s public financial governance framework. This trust is built on precise statistical reports that accurately depict government support levels, facilitating sound fiscal decision-making. The UAE's commitment to sustainability across sectors is evident through these efforts, which aim to achieve the Sustainable Development Goals while maintaining fiscal balance.

Enhancing fiscal transparency and developing statistical data infrastructure are priorities for the Ministry. Improving data reliability and financial disclosure are fundamental to shaping public policy. These initiatives reflect the UAE’s adherence to high standards of financial governance, supporting economic stability and boosting its ability to respond swiftly to global developments.

The IMD World Competitiveness Yearbook 2025 highlights several areas where the UAE excels globally. The country ranks first in venture capital and personal income tax collection as a percentage of GDP. It holds second place in corporate profit tax rate and third in government budget surplus/deficit (US$ billion). Additionally, it ranks fourth in both decline in collected indirect tax revenues and consumption tax rate reduction.

The UAE also achieved fifth place in taxes collected on capital and property, sixth in public finance, seventh globally (and first regionally) in general government expenditure as a percentage of GDP, and ninth globally in real growth of government consumption expenditure. These accomplishments underscore the nation’s competitive edge and commitment to fostering a sustainable economic environment.

Future Aspirations

The Ministry of Finance aims to rank among the top ten globally in the Government Support Index by 2026. This goal aligns with the vision of UAE leadership and national teams' dedication. A results-driven approach based on effective public spending and financial sustainability will continue driving national growth.

Efforts are underway to develop advanced institutional information systems for better financial data collection tools. Strengthening coordination between federal and local finance departments is crucial for improving financial performance indicators. These initiatives aim to enhance public spending quality and its developmental role within the national strategy framework.

Overall, these achievements highlight the UAE's adaptability to challenges and ability to respond effectively to global economic shifts. The nation continues solidifying its status as a leading global economic hub through strategic initiatives focused on sustainable growth.

With inputs from WAM