Core Insights - The UAE's government support index has risen to 16th globally, an increase of 27 positions compared to 2024, indicating effective fiscal policy [2] Group 1: Government Support Index - The government support index measures the proportion of government support spending relative to GDP, assessing the efficiency of public financial resource management [2] - The UAE's rise in this ranking reflects the effectiveness of its fiscal policies [2] Group 2: Competitiveness Indicators - The UAE ranks first globally in investment capital index and personal income tax rates [2] - The UAE holds the second position in corporate profit tax rate index and third in government budget surplus/deficit index [2] - The country is fifth in capital and property tax collection percentage and sixth in public finance index, showcasing strong fiscal performance [2]

Core Insights - The UAE has significantly improved its ranking in the IMD World Competitiveness Yearbook 2025, moving up to 16th place in the "Government Support Index" from 43rd in 2024, reflecting substantial progress in fiscal policy efficiency and public resource management [1] Government Support Index - The Government Support Index measures the proportion of government support to GDP, indicating the effectiveness of public fiscal spending in promoting economic growth [1] - The improvement is attributed to the collaboration between federal and local financial departments, optimizing resource allocation and enhancing financial analysis tools to increase the effectiveness of public spending [1] - The UAE aims to enter the global top ten in this index by 2026 [1] Other Competitiveness Indicators - The UAE ranks first globally in venture capital and personal income tax as a percentage of GDP, second in corporate profit tax rate, and third in government budget surplus [1] - The country also ranks sixth in public finance indicators and is in the top ten for government spending and consumption growth [1] - These achievements reinforce the UAE's competitiveness and resilience as a global economic hub [1]