The United Arab Emirates ranks among the most economically free countries in the Gulf region and the broader Arab world, according to the Economic Freedom of the World (EFW) 2026 Annual Report published by the Fraser Institute. Using data from 2024, the UAE secured 46th place out of 165 jurisdictions with an overall economic freedom score of 7.42 out of 10.
Within the Arab world and Gulf Cooperation Council (GCC), the UAE is positioned as the second most economically free economy, trailing only Bahrain, which ranked 40th with a score of 7.49. Other regional nations include Jordan, which placed 50th with a score of 7.38, and Saudi Arabia, ranked 60th with a score of 7.17.
The UAE’s performance was particularly strong in legal systems and property rights, where it ranked first among Gulf countries and 30th globally with a score of 7.08. This positioned the UAE ahead of Saudi Arabia, which ranked 47th in this category, and outpaced all other GCC members. The country also led the Gulf in trade freedom, registering a score of 8.62 and placing 33rd worldwide, surpassing Qatar. Moreover, the UAE received notable rankings for regulation (29th globally, with 7.23) and sound money (76th, scoring 8.47).
At the global level, Hong Kong maintained its status as the world’s most economically free jurisdiction despite a significant decline since 2018, scoring 8.53, followed by Switzerland (8.45), Singapore (8.43), New Zealand (8.38), and the United States (8.21). Ireland, Denmark, Australia, Mauritius, Finland, the Netherlands, and the United Kingdom also featured among the top ten. Conversely, Venezuela was ranked as the least economically free country.
The report highlighted a general decline in global economic freedom compared to pre-pandemic levels. It cited increased trade barriers, expanded government regulations and spending, and monetary expansion following 2020 as key factors contributing to the decline. While some progress to reverse these trends has occurred, all categories except freedom to trade internationally registered lower scores in 2024 relative to 2019. The global average economic freedom scores for 2024 were 6.62 (unweighted) and 6.42 (population-weighted).
Matthew Mitchell, senior fellow at the Fraser Institute and co-author of the report, noted that the drop in economic freedom during the pandemic was largely due to policy responses such as heightened regulations, increased government spending and taxation, and money printing to finance fiscal measures.
Among major economies, Japan ranked 13th, Canada fell to 18th from ninth, and Germany stood at 19th. France was placed 39th, Italy 47th, and South Korea 53rd. Emerging economies such as Indonesia ranked 72nd, Mexico 77th, Brazil 85th, India 88th, China 110th, and Russia 143rd. In South Asia, Nepal was 90th, Sri Lanka 119th, Bangladesh 129th, and Pakistan 133rd.
The report also provided a preliminary estimate for the United States in 2025, predicting a 0.12-point decline attributed to an enlarged government footprint, weakened property rights, and heightened trade restrictions.
Researchers emphasized that the index measures economic freedom specifically, not broader living standards or personal freedoms, and does not weigh the potential positive effects of certain regulations or tax policies. The highest-ranked quarter of countries enjoy average incomes nearly seven times greater than those in the lowest-ranked quarter, with much longer life expectancies and fewer working hours for poorer populations within freer economies.