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The Fraser Institute has ranked the UAE second among Arab economies and in the Gulf for economic freedom in its 2026 Annual Report, placing the country 46th worldwide with a score of 7.42 out of 10 based on 2024 data. Bahrain led the regional table in 40th place globally with 7.49 points while Jordan and Saudi Arabia followed in 50th and 60th positions with scores of 7.38 and 7.17 respectively, according to the assessment of 165 jurisdictions. The UAE stood out in the Gulf for its performance in two of the index’s five areas of measurement.
According to the Fraser Institute the country achieved the region’s highest marks for legal systems and property rights with a score of 7.08 that translated into a 30th global ranking ahead of Saudi Arabia and all other GCC states. It also excelled in freedom to trade internationally scoring 8.62 for 33rd place worldwide and outranking Qatar in that category. These strengths helped offset a 76th position in sound money where it scored 8.47 even as it secured 29th place for regulation with 7.23 points.
The Economic Freedom of the World report which was published on October 6 identified Hong Kong as the freest economy globally for another year. Produced by researchers including James Gwartney and Robert Lawson the index evaluates government size legal framework sound money international trade freedom and regulation to assess how institutions affect economic choices and prosperity. The UAE’s results reflect its policy emphasis on openness and legal protections the report’s findings indicate.
Separately the Heritage Foundation’s 2026 Index of Economic Freedom which uses a 0-100 scale gave the UAE a score of 71.9 an increase of 0.3 points from the previous year. That assessment named the UAE the freest economy in the Middle East and North Africa region and 23rd in the world describing it as mostly free with an open trade regime competitive financial markets and business licensing that requires no minimum capital according to the foundation. Population and economic data included in the Heritage Foundation review placed UAE GDP per capita at more than 84,000 dollars with unemployment at 2.2 percent.
GCC-wide performance has also exceeded global benchmarks with the GCC Statistical Centre reporting that the bloc averaged 66.9 points on its economic freedom index in 2026 against a world average of 59.9. This regional outperformance aligns with the individual country results seen in both the Fraser Institute and Heritage Foundation evaluations. The metrics help illustrate the appeal of Gulf markets to international investors seeking environments with strong rule of law and market access.
The Fraser Institute data further showed that the UAE’s regulatory environment ranked among the better performing ones globally. Combined with its trade freedom the results position the country favorably in comparisons that influence investment decisions across the Arab world. Analysts often reference these annual reports when evaluating long-term economic policy effectiveness.
