Official Site - The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.
The 2009 Legatum Prosperity Index
Legatum Institute logo

47

United Arab Emirates  


Fast Facts

Population 4.8 mn (2009 est.) GDP (per capita) $39,900 (2008 est.) Inflation 14.4% (2007)
Life Expectancy 64 years (2003) GDP (PPP) $184.3 bn (2008 est.) Unemployment 3% (2007)
Average Life Satisfaction 7/10 (2006) GDP (growth) 7.4% (2008 est.) Freedom House Rating Not Free (2009)
Political System Federation with specified powers delegated to the UAE federal government and other powers reserved to member emirates (2009)

Sub-Index Rankings

Compare Countries:

Index Comparisons
(Rank / Number of countries)

Legatum Prosperity Index47th / 104
Average Life Satisfaction Ranking24th / 104
Per Capita GDP Ranking10th / 104
WEF Global Competitiveness Index23rd / 133
UN Human Development Index31st / 179
Heritage/WSJ Economic Freedom Index54th / 178
TI Corruption Perceptions Index35th / 180
Vision of Humanity Global Peace Index40th / 144

 

Regional Ranking:
Middle East and North Africa

27= Israel
47 United Arab Emirates
52= Kuwait
68 Tunisia
80 Jordan
81 Saudi Arabia
83 Morocco
86 Lebanon
88 Egypt
94 Iran
96 Algeria
101= Yemen

View other countries:
 

Economic Fundamentals - Ranked 38th

The UAE has relatively sound fundamentals despite a heavy reliance on raw material exports

The unemployment rate is extremely low at just over 3%, ranking the country ninth, globally. However, physical capital per worker is high, ranking the country in the top third, worldwide, on this variable. Inflation is extremely high at a rate of 14%. The UAE’s high domestic savings rate, equalling 45% of its GDP, places the country seventh, globally, and household expenditure is also moderately strong at 25% of GDP. The banking and credit sector performance is varied, where, despite a high loan default rate of 6%, the banking sector is relatively efficient with an interest margin of less than three percentage points. The UAE has a very high reliance on raw materials, with concentration levels as high as 38%. However, the country’s exports as a capacity to import are very high as well, ranking the country seventh worldwide, and suggesting strong terms of trade.

Entrepreneurship and Innovation - Ranked 44th

The UAE has good levels of technological infrastructure, but barriers to entry for business registration limit entrepreneurship

There are 12 start up procedures required for new businesses in the UAE, ranking the country low on this variable. Internet infrastructure is reasonably well developed in the UAE as the country ranks above the global average with regard to the bandwidth available to internet users. The number of secure internet servers ranks in the top 30 worldwide with nearly 60 servers per one million capita. Despite this internet infrastructure development, there are relatively few personal computers available per capita at 33 units per 100 people. ICT exports rank highly, in the top 35, but high-tech exports only account for 1% of total exports, which is an extremely low proportion. Spending on R&D is rather poor, equivalent to 0.3% of the UAE’s GDP, and value added by the service industry is also low, ranking the country in the bottom 20 on this variable.

Democratic Institutions - Ranked 98th

With no independent legislature or elections, the UAE is one of the least democratic countries in the world

The UAE is classified as an autocracy and citizens have very few political rights and civil liberties. There are no constraints on the executive branch of government, meaning that political actors can take whatever policy decisions they like without fear of veto. There is no judicial independence in the UAE. Elections for the executive branch are non-existent, but political processes do tend to be well regulated, as the UAE’s current regime is relatively stable, with the last significant regime change occurring over 30 years ago.

Education - Ranked 47th

Despite low primary enrolment rates, the UAE has a non-discriminating, strong education system, with high levels of government funding

Primary school enrolment rates in the UAE are relatively low, but there is one teacher for every 17 primary school pupils and 101 girls for every 100 boys, suggesting gender equality. Secondary enrolment rates are above the global average, with 90% of students enrolled, but tertiary enrolment is low at only 23%. The workforce has, on average, a high level of secondary education at 5.5 years, ranking the country in the top third, worldwide, on this variable. The average worker in the UAE receives 4.1 years of tertiary education, ranking the country around the global median. Government funding per student is comparatively high, ranking the country in the top 30 worldwide on this variable.

Health - Ranked 29th

The UAE has relatively few doctors and nurses, but its citizens consider themselves very healthy

With less than two medical professionals and two hospital beds per 1,000 people, access to healthcare facilities is only moderate by international standards. Nonetheless, health-adjusted life expectancy is above the global average at 64 years. Furthermore, only 3% of the population is undernourished in the UAE, a very low proportion. At 0.8%, infant mortality rates are also low, ranking the country in the top 40 countries on this variable. While 97% of people in the UAE have access to improved sanitation facilities, only four-fifths of are satisfied with their water quality.* An extremely high 93% of citizens are happy with their general health, and only 12% of the population consider themselves to have ongoing health problems; both figures are the second highest, worldwide.* Three-quarters of citizens reported feeling well rested, and less than a quarter reported that they were in pain, ranking the UAE in the top third for both variables.*

Safety and Security - Ranked 18th

The domestic crime rate in the UAE is one of the lowest worldwide

The UAE faces some security challenges relating to refugees, groups with a history of discrimination or other grievances, human flight, and government-sponsored violence against its citizens. Domestic crime is not a significant problem as the country has the second lowest homicide rate, worldwide, leading to reports that 95% of the population feel safe walking alone at nights, the highest rate worldwide.* Only 9% report having had property stolen in 2006, and 3% were assaulted in the same timeframe; both figures are among the 20 highest, worldwide.*

Governance - Ranked 39th

Emiratis benefit from effective governance, despite living under a non-democratic system

The rule of law is highly respected in the UAE, the quality of commercial and economic regulation is high, and the government bureaucracy is efficient, ranking the country in the top 40 on all three of these variables. The right to political self determination through free and fair elections does not exist in the UAE, but 94% approve of the judicial process in the country, the highest proportion worldwide.* Only one-fifth of UAE citizens believe there is corruption within local businesses, ranking the country second in the world on this variable. Data for confidence in the military, perception of government corruption, and confidence in the electoral process were unavailable.

Personal Freedom - Ranked 72nd

While recorded levels of personal freedom are low in the UAE, 90% of the population is satisfied with their freedom

Citizens in the UAE have very low levels of freedom with respect to movement, religion, and speech. However, 90% of the population are satisfied with the personal freedom in their day to day lives, ranking the country in the top 15 on this variable.* The UAE is also a very tolerant nation, as 87% believe their area is a good place for immigrants to live, and 71% believe that ethnic minorities are welcome.

Social Capital - Ranked 77th

Nine out of 10 UAE citizens feel that they have friends and family to rely on in times of need

A high 90% of the population feel they can rely on their family and friends in times of need, and over half claim to have helped a stranger in the previous month.* Furthermore 41% of citizens in the UAE donated to charitable organisations in the past month, but only 9% volunteered, ranking the country in the bottom 15 on this latter variable.* The UAE is one of the most religious countries in the world, ranking fifth on this variable, suggesting that citizens have widespread access to a religious support network. As many as 59% of all citizens in the UAE are married, which is a high proportion, internationally, indicating the potential for strong familial support.* Data on social trust, the importance of friends, and group membership were unavailable.

* Data taken from the Gallup World Poll