Reports

Ranking Gulf countries in terms of economic stability and quality of life

Published

7 months ago

October 26, 2024

Ramez Spector

1. UAE

No. 1 in Economically Stable

No. 17 in Best Countries Overall

The UAE is a federation of 7 emirates in the Gulf region. Prior to the discovery of oil, the country’s economy used to be dependent on primarily fishing and the pearl industry. But since the export of oil started in the 1960s, the UAE’s economy has rapidly transformed.

In the recent past, the UAE has been putting substantial efforts into economic diversification. Experts believe the country has the most competitive economy in the region. Today, the UAE’s per capita GDP is comparable to those of leading European nations.

The UAE is also one of the most liberal countries among the six Gulf Cooperation Council (GCC) nations. The country continues to attract millions of tourists every year. The UAE is a member of the UN, OPEC and several other international organisations.

Quality of Life Indicators

Overall ranking – 27

Economic Stability – 100

Political Stability – 63.6

Safety – 46.2

Job Market – 86.9

Income Equality – 21.4

Family Friendly – 25.3

2. Saudi Arabia

No. 10 in Economically Stable

No. 32 in Best Countries Overall

Saudi Arabia is the largest country in the Gulf region. Millions of devout Muslims from across the globe participate in the annual Mecca pilgrimage. Mecca is believed to be the birthplace of the Muslim prophet Mohammed.

The Kingdom is ruled by a monarch, assisted by 12 appointed ministers. Today, an increasing portion of the female population of Saudi Arabia is on the path to equal voting and other human rights. It is a founding member of OPEC and a member of other organisations.

Saudi Arabia found oil reserves soon after its founding, quickly becoming the top exporter globally and achieving skyrocketing economic progress. These days, the Kingdom is seeking to diversify its economy and reduce its oil dependency.

Quality of Life Indicators

Overall ranking – 31

Economic Stability – 91

Political Stability – 44

Safety – 21.8

Job Market –

Income Equality – 9.6

Family Friendly – 12

3. Qatar

No. 14 in Economically Stable

No. 25 in Best Countries Overall

Qatar is located on a small desert peninsula. The country became an independent state back in 1971. Currently, it is one of the richest countries globally – home to abundant oil and natural gas reserves. Nearly 2.4 million people live in the country.

Just over half of Qatar’s GDP is comprised of manufacturing, financial and construction services. These sectors have helped the country address the global decline in oil prices in recent years. Qataris enjoy a high standard of living.

Healthcare and education are free for all. The country’s media are among the freest in the Gulf region. Citizens have been casting their votes in local elections since 1999. 40% of Qatar’s population is arab, but the country also has Indians, Pakistanis and Iranians.

Quality of Life Indicators

Overall ranking – 28

Economic Stability – 86

Political Stability – 39.8

Safety – 49.1

Job Market – 74.4

Income Equality – 13.5

Family Friendly – 17.2

4. Kuwait

No. 27 in Economically Stable

No. 53 in Best Countries Overall

Kuwait is a small country in the Gulf region – bordered by Saudi Arabia to its south and Iraq to its north. It has a dry desert climate and scorching summer temperatures. Similar to the UAE, this GCC nation’s economy also relied on fishing and pearl before the discovery of oil.

Kuwait found its massive oil reserves in the 1930s. Besides the increased economic development brought by oil, the country also noted a rise in urbanisation. The capital city features modern skyscrapers and apartment buildings for the nation’s largely urban population.

Kuwait is a constitutional monarchy. The Emir appoints a Council of Ministers, including the Prime Minister, and can dissolve the parliament, too. The country is one of the five founding members of OPEC, and is also a part of the UN and the IMF.

Quality of Life Indicators

Overall ranking – 49

Economic Stability – 53.4

Political Stability – 17.2

Safety – 17.3

Job Market – 31.4

Income Equality – 10.1

Family Friendly – 8.5

5. Bahrain

No. 32 in Economically Stable

No. 69 in Best Countries Overall

Off the coast of Saudi Arabia, a collection of several small islands comprise Bahrain. It is one of the six Gulf Cooperation Council (GCC) nations. Much of the country’s identity stems from its link to “the 2 seas” – the translation of its name in Arabic.

In 1932, Bahrain discovered its oil reserves off its shores in the Persian Gulf. The country’s petroleum industry has still not matched the level of production and profitability seen in Saudi Arabia and the UAE. But its central location to oil transit gives it an advantage.

Bahrain has been putting substantial efforts into diversifying its economy because of limited oil reserves and a fall in prices. Increasing freedoms have made the country an attractive destination in the region, supporting its hospitality industry.

Quality of Life Indicators

Overall ranking – 60

Economic Stability – 36.1

Political Stability – 22.9

Safety – 22.5

Job Market – 8.3

Income Equality – 6.4

Family Friendly – 16.3

6. Oman

No. 38 in Economically Stable

No. 61 in Best Countries Overall

Oman is the oldest independent state in the Arab region. It is a high-income country that generates 84% of its revenue from depleting oil resources. Compelled by the global drop in oil prices, the country is using tourism and gas-based industries to diversify.

Oman is prominent for its forts and castles. One of the most famous structures in the country is Bahla Fort, a stone and mud-brick structure built in the medieval Islamic period. Oman is a member of the UN. Despite its oil reserves, the country is not an OPEC member.

Tens of thousands of tourists visit the country every year. People visiting the souk, or traditional market, of Muscat can admire the handmade items there. Oman remains one of the most happening destinations among travellers entering the Gulf region.