The United Arab Emirates has started the new year on a positive note by establishing itself as one of the world leaders in innovation, competitiveness and ability to prepare for future needs, a trend closely followed in Latest Gulf News. Through economic resilience, digital governance, inclusive healthcare, and significant advances in human development, the UAE has established itself based on long-term strategic vision rather than short-term successes. Strategic policy development, talent acquisition, and technological advancements are the basis for the transformation from a developing to an advanced nation in the world in regard to its global competitiveness.
The UAE is consistent in its ability to turn vision into an actual outcome
In 2025, many of the international index systems developed by various world organisations illustrate how the UAE has not only outperformed many of the developed nations, but that it continues to rank as not only the leader in the Middle East but also as the global benchmark for global talent readiness.
Significant improvements in Global Competitiveness ranking (GCR) with the IMD World Competitiveness Ranking 2025 moving up 2 rankings from #7 to #5 with an average score of 96.09 out of 100. Additionally, for the ninth consecutive year, the UAE ranked as #1 in the Middle East, demonstrating consistent performance as opposed to the previous year’s performance. In the IMD World Talent Rankings 2025, the UAE ranked ninth and moved 8 rankings. The significant increase in rankings is attributed to several factors, including enhanced readiness in the workforce, enhanced skill development, and the development of advanced skills.
Human Development and Soft Power Gains
The UAE was among the world’s top 15 nations, according to the UNDP Human Development Index 2025, where the country gained 11 places. It is the only Arab country to be included in the world’s top 20. The ranking represents real improvement in education, health care access and quality of life in the UAE.
The UAE is ranked as the 10th best nation in the Global Soft Power Index 2025 report. The country’s brand value increased from $1 trillion to $1.223 trillion, representing the increasing global influence of the UAE in the fields of diplomacy, tourism, global business and culture.
Healthcare and Wellbeing Leadership
The UAE’s healthcare system emerged as a global standout in 2025:
Healthcare Indicator
UAE Global Rank
Health outreach & community participation
1st
Wellbeing promotion
1st
Person-centred healthcare
Top 5
Inclusive health system implementation
2nd
Health literacy
10th
These rankings reflect a shift from treatment-focused models to prevention, inclusion, and wellbeing—an approach increasingly valued worldwide.
Digital Government and AI Excellence
The UAE continues to pioneer global leadership in the areas of digital governance and artificial intelligence. According to global rankings, the country ranks number one globally in the following areas:
telecommunications infrastructure
institutional framework for digital government and
digital content. All three areas provide evidence of the country’s comprehensive digital ecosystem.
Some areas where the UAE ranks on a global basis, according to the following ranking,s include:
No. 1 in AI Government Readiness Index 2024 (Oxford Insights);
No. 3 overall in government service delivery;
No. 4 in the GovTech Maturity Index (World Bank); and
These rankings provide a strong indication that digital-first governance has transitioned to being a strategic asset rather than merely an ancillary function.
Safety, Entrepreneurship, and FDI Strength
The UAE was named the safest country in the world as per the Numbeo Safety Index (mid-2025) with a total score of 85.2. This reinforces the UAE as a preferred destination for residents, investors, and visitors.
Entrepreneurship remains a major strength for the UAE, having ranked number one globally for the fourth year in a row in the GEM Report 2024/2025 as the best country in the world to start a business and for SMEs. The UAE is the tenth largest destination for foreign direct investment globally for 2024, with an FDI inflow of Dhs167.6 billion ($45.6 billion according to the UNCTAD World Investment Report 2025)—a testament to the level of confidence that global investors place in the UAE as a viable investment destination.
FAQs
What drives the UAE’s global competitiveness in 2025?
The strength of UAE Governance, Computing Network, human resources development, and economic diversification have consistently shown up as high performance indicators across multiple Global Indices.
What are the factors behind the UAE’s position as a Leader in AI and Digital Government?
The UAE’s early adoption of AI strategies, strong telecom infrastructure, and citizen-centric digital services have contributed to its position as the World leader in AI and Digital Government.
How does UAE rank on the World Human Development Index?
The UAE is ranked 15th in the World Human Development Index. It is also the only Arab Country to be included in the Top 20, which signifies improvement in quality-of-life, education, and healthcare.
Should entrepreneurs consider the UAE to be a viable business environment in 2025?
Definitely! Reports consistently find that the UAE is the world’s best environment for startups and small and medium enterprises (SME) as a result of supportive policies and availability of capital.
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