The UAE has achieved a significant milestone by rising to 10th place in the IMD World Competitiveness Yearbook 2026’s Government Support Index, a jump of six positions from the previous year. This improvement is attributed to a decrease in government support as a percentage of GDP, which fell to 0.43% in 2026 from 0.55% in 2025, reflecting enhanced efficiency in public spending and resource allocation.
The latest ranking, reported by the Emirates News Agency, aligns with the UAE Ministry of Finance’s goal to enter the global top 10 in this index. The UAE had previously ranked 43rd in 2024, marking a remarkable advancement of 33 places over two years. This progress underscores the country’s commitment to optimizing public finances while maintaining targeted economic support.
Key Factors Behind the Improvement
The IMD Government Support Index measures government assistance relative to the size of the economy, with a lower percentage indicating stronger performance. The UAE’s rise in the rankings is part of a broader enhancement in fiscal competitiveness, where it now ranks second globally in the Public Finance subfactor, third in Budget Surplus/Deficit, and seventh in General Government Expenditure.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, emphasized that the improved ranking reflects the UAE’s ability to balance economic stimulus with efficient investment spending. He noted that closer integration between the federal Ministry of Finance and local finance departments has played a crucial role in compiling public-finance information within a unified framework, enhancing the quality and comparability of fiscal data.
Future Objectives and Continued Focus on Data Quality
Looking ahead, the Ministry of Finance aims to maintain the UAE’s top-10 position while further improving the quality, completeness, and timeliness of fiscal data used in international assessments. This focus on data quality is essential for supporting effective fiscal policy and resource allocation, as well as enhancing the UAE’s credibility in global competitiveness rankings.
The UAE’s strong performance in the IMD rankings is not limited to the Government Support Index. The country also ranks fourth globally in Government Efficiency and first in Economic Performance, highlighting its robust economic framework and institutional credibility. As the UAE continues to navigate a volatile global environment, its ability to adapt and maintain competitiveness will be critical for future growth.
For more details on the UAE’s performance in the IMD rankings, visit Economy Middle East.
As the UAE solidifies its position among the world’s top economies, the focus will remain on enhancing fiscal data systems and ensuring that public finance continues to support sustainable economic growth.
