The United Arab Emirates has been ranked as the third-best place to live globally in the 2026 Nomad Capitalist Lifestyle Index, trailing only Monaco and Andorra. The ranking evaluated 63 destinations worldwide based on five equally weighted categories: nature and climate, taxation, residency and accessibility, safety and freedom, and quality of life and infrastructure.

Scoring 73.15 out of 100, the UAE narrowly missed the top two spots, with Monaco leading at 73.89 points and Andorra close behind at 73.68. The margin separating these top three destinations was less than three-quarters of a point, indicating a closely contested ranking.

The UAE stood out particularly in its tax environment, securing the highest score of 96, making it the top destination globally in this category. It also performed well in quality of life and infrastructure, ranking fifth with a score of 72.6. In terms of residency and accessibility, the country placed seventh, earning 78.7 points. However, its ranking was lower for nature and climate, where it came in 16th with 59.7 points.

Khatia Gelbakiani, Head of Product at Nomad Capitalist, noted that while Monaco excelled in quality of life, Andorra led in safety and freedom, and the UAE was foremost in taxation. She emphasized that the best location ultimately depends on individual preferences and priorities, as each of the top destinations offered distinct advantages.

As the only Gulf country featured in the index, the UAE’s ranking highlights its growing appeal to expatriates and international residents, balancing competitive tax policies with strong infrastructure and accessibility, despite certain limitations relating to climate and natural environment.