UAE ranks 16th globally in ‘Government Support Index’

The United Arab Emirates has achieved another landmark milestone in its record of global leadership, 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.

This marks a remarkable jump of 27 positions from its 43rd place in 2024.

The Government Support Index measures the value of government support as a percentage of gross domestic product (GDP) and serves as a benchmark for the efficiency of public financial resource management, as well as a country’s ability to stimulate economic growth through well-targeted and effective public spending policies.

The Ministry of Finance affirmed that the UAE’s rise to 16th place globally reflects the efficiency of the nation’s fiscal policies and the concerted efforts to enhance the effectiveness of public expenditure.

This progress has been achieved through an integrated framework of collaboration between the federal government and local financial departments to advance financial analysis tools and optimise resource allocation.

The Ministry further noted that it is continuing to strengthen the country’s standing in the Government Support Index by improving the quality of financial data and promoting sustainability and fiscal balance practices, in line with the UAE’s vision to enhance global competitiveness and achieve the Sustainable Development Goals, in close coordination with local finance departments.

The Ministry explained that this achievement demonstrates the increasing trust of international institutions in the UAE’s public financial governance framework. It underscores the country’s commitment to sustainability across sectors through the development of precise statistical financial reports that accurately reflect the scale and scope of government support, thereby enabling sound, evidence-based fiscal decision-making.

The Ministry stressed that it attaches great importance to strengthening fiscal transparency and developing the statistical data infrastructure, highlighting that enhancing data reliability and improving the level of financial disclosure are fundamental pillars in shaping public policy. These efforts reflect the UAE’s adherence to the highest standards of financial governance, supporting economic stability and boosting its capacity to respond to global developments with agility and efficiency.

The Ministry concluded, "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 World Competitiveness Yearbook 2025, the United Arab Emirates ranked among the world’s top ten countries in several competitiveness indicators, reflecting the nation’s advanced financial performance.

The UAE secured first place globally in both venture capital and collected personal income tax as a percentage of GDP. It ranked second in corporate profit tax rate, third in government budget surplus/deficit (US$ billion), and fourth in both decline in collected indirect tax revenues and decline in consumption tax rate.

The country also placed fifth 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 achievements underscore the UAE’s global competitiveness, reaffirm its commitment to fostering a sustainable economic environment, and highlight its ability to adapt to challenges and respond to global economic shifts-further strengthening its position as a leading global economic hub.

As part of its national strategy, the Ministry of Finance is working to develop and enhance financial data collection tools through advanced institutional information systems, while strengthening coordination between the federal government and local finance departments. These initiatives aim to improve financial performance indicators and deliver tangible impact on the quality and developmental role of public spending. The UAE secured first place globally in both venture capital and collected personal income tax as a percentage of GDP.

WAM