UAE tops economic stability rankings
The United Arab Emirates was named the world's most economically stable country in US News & World Report's 2025 rankings, outperforming established Western economies. The UAE is experiencing a surge in high-net-worth individuals seeking residency, with about 35% of wealthy people globally considering relocation to lower-tax jurisdictions. This influx is expected to energize the real estate, luxury, and hospitality sectors.
- The ranking assesses countries on 73 attributes, with the "economically stable" attribute being a key component of the "Open for Business" subcategory; this subcategory also considers factors like low manufacturing costs, a favorable tax environment, minimal bureaucracy, and government transparency. - Other nations that scored high for economic stability include Germany, Canada, Japan, Australia, Sweden, Denmark, the Netherlands, and Saudi Arabia. - A key driver of investment is the UAE's "Golden Visa" program, which offers long-term residency to individuals who invest in property worth at least AED 2 million (approximately USD 545,000) or meet other investment criteria. - The program also extends to entrepreneurs with innovative projects valued at AED 500,000 or more, who can gain a five-year visa. - For high-net-worth individuals, another pathway to the 10-year Golden Visa involves investing at least AED 2 million in an accredited investment fund or owning a company that pays a minimum of AED 250,000 in annual taxes. - This stability is further bolstered by the performance of non-oil sectors, which contributed to over 75% of the total GDP in the first quarter of 2025, with real GDP for this sector growing at 5.7% in the first half of the year. - Businesses in the UAE's numerous free zones can benefit from a 0% corporate tax rate on "qualifying income," provided they meet substance and compliance requirements, while a standard 9% rate applies to other income. - Foreign direct investment has been a significant factor, reaching approximately $45.7 billion in 2024, a nearly 50% increase from the previous year, positioning the UAE among the top ten global destinations for FDI.
