The UAE has achieved a significant milestone in public financial governance, rising 27 places to secure the 16th position globally in the 2025 Government Support Index, a key indicator published in the International Institute for Management Development (IMD) World Competitiveness Yearbook.
The UAE was ranked 43rd in 2024, making this one of the most notable year-on-year improvements worldwide.
Benchmark for effective public spending
The index measures government support as a percentage of GDP, serving as a key benchmark for the efficiency of public financial resource management and the effectiveness of fiscal policies in stimulating economic growth.
The UAE’s leap reflects a strong alignment between fiscal sustainability, efficient public spending, and economic competitiveness.
According to the UAE Ministry of Finance, the achievement underscores the success of the UAE’s fiscal policy framework, which prioritizes targeted support, transparency, and sustainable resource allocation.
It also highlights the collaborative efforts between federal and local financial departments to enhance financial analysis tools and optimise public spending.
Strengthening governance and transparency
The Ministry noted that the UAE’s continued ascent in global rankings is tied to its commitment to financial sustainability, data quality, and transparency. By advancing statistical financial reporting and promoting evidence-based decision-making, the UAE is improving the accuracy and reliability of its fiscal metrics — gaining trust from international institutions in the process.
Efforts to develop the statistical data infrastructure and improve fiscal disclosure practices are integral to the country’s broader strategy to support economic stability and adaptability in a rapidly changing global environment.
UAE among top 10 globally in multiple competitiveness indicators
In addition to its rise in the Government Support Index, the UAE ranked among the top 10 countries globally in several competitiveness indicators featured in the IMD 2025 report, demonstrating its advanced financial performance and global standing.
Key rankings include:
- First globally in venture capital and collected personal income tax as a percentage of GDP
- Second in corporate profit tax rate
- Third in government budget surplus/deficit (US$ billion)
- Fourth in both decline in collected indirect tax revenues and decline in consumption tax rate
- 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
- Ninth globally in real growth of government consumption expenditure
These rankings reflect the UAE’s ability to balance fiscal discipline with growth-oriented policies, while also adapting swiftly to global economic shifts.
Continued reforms to boost global competitiveness
As part of its national financial strategy, the Ministry of Finance is accelerating the development of institutional information systems to support more accurate financial data collection.
Enhanced coordination between federal and local finance departments aims to further strengthen the country’s financial performance indicators and boost the developmental impact of public spending.
The achievement not only reaffirms the UAE’s commitment to sustainable and transparent fiscal governance but also strengthens its position as a leading global economic hub, capable of navigating complex international challenges with agility and foresight.
The Ministry concluded: “We aspire to rank among the world’s top 10 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.”
