UAE Emerges As The Most Diversified Economy In The GCC Region According To Global Economic Diversification Index 2025

The Mohammed Bin Rashid School of Government (MBRSG) introduced the fourth edition of the Global Economic Diversification Index (EDI) at the 2025 World Governments Summit. This event, themed ‘Shaping Future Governments,’ included a keynote by Dr. Abdallah Al Dardari from the United Nations Development Programme and was moderated by Dr. Fadi Salem of MBRSG.

Dr. Abdallah Al Dardari highlighted, "According to the Economic Diversification Index 2025 (EDI 2025) report, economic diversification helps mitigate vulnerabilities to economic and geopolitical disruptions by expanding the economic base. This approach strengthens resilience, promotes sustainable growth, and enables countries to navigate global transitions, including the shift to a green economy and digital transformation. By investing in a variety of sectors and encouraging innovation, we can cultivate robust economies that drive prosperity and create opportunities for all."

Dr. Ali bin Sebaa Al Marri from MBRSG emphasised that economic diversification is crucial for ongoing development and global stability. The Global Economic Diversification Index offers governments insights into successful diversification strategies, aiding policy reforms. Al Marri stated that this aligns with MBRSG's mission to support UAE’s vision for a sustainable future through informed decision-making.

The EDI was first published in 2022 to measure economic diversification across nations comprehensively. It addresses gaps in data and policy tools needed to track diversification efforts. The index evaluates government revenue, output, and trade sub-indices, enabling countries to compare their progress with others.

The 2024 report introduced an enhanced digital trade index (EDI+), reflecting digitalisation's impact on diversification post-pandemic. The 2025 edition continues this assessment, covering 115 countries over 24 years using public data for transparency. Key findings show the US, China, and Germany maintaining top positions globally.

In the Gulf Cooperation Council (GCC), the UAE leads in trade diversification while excelling alongside Bahrain in output metrics. Among commodity-dependent nations, Mexico and Malaysia rank highest overall. Saudi Arabia notably improved by over 30 ranks from 2000 to 2023; similarly, the UAE rose by 24 ranks during this period.

Insights from EDI Scores

The EDI 2025 underscores the importance for resource-reliant countries to adopt policies preventing reliance on natural resources alone for growth. Digital trade indicators have elevated several countries' rankings within the top quintile of EDI scores.

The Global Economic Diversification Index provides insights into economic trajectories since 2000 amid global shifts towards digital economies. MBRSG also hosts an annual conference on economic diversification with experts from academia and policymaking institutions worldwide.

The inaugural conference attracted over 150 participants from more than 30 countries and various organisations. The second edition is scheduled for 2025 at MBRSG.

Resources for Policymakers

Through its Policy Research Department, MBRSG aims to enhance government decision-making with evidence-based recommendations across diverse public policy areas globally. The complete EDI report is accessible online at multiple platforms including World Governments Summit website and MBRSG’s research repository.

With inputs from WAM