The UAE has been identified as the most diversified economy in the Gulf Cooperation Council (GCC) region, according to the recently released Global Economic Diversification Index (EDI) 2025. The Mohammed Bin Rashid School of Government (MBRSG) presented this report during a panel discussion at the 2025 World Governments Summit, which focuses on “Shaping Future Governments.”

The EDI, first introduced in 2022, evaluates economic diversification among 115 countries by analyzing three sub-indices: Government Revenue, Output, and Trade. This allows nations to track their economic diversification progress and compare it with that of their peers. The 2025 edition of the index expands its insights over 24 years, utilizing publicly available data to enhance transparency and reproducibility of results.

Key findings from the EDI 2025 indicate that the United States, China, and Germany secured the top three positions globally. Within the GCC, the UAE excelled in the trade sub-index, while both the UAE and Bahrain achieved high scores in the output sub-index, solidifying their status as the region’s most diversified economies over time. Notably, Saudi Arabia, the UAE, Kazakhstan, Qatar, and Oman have all made significant improvements in their rankings from 2000 to 2023.

H.E. Dr. Abdallah Al Dardari, Assistant Secretary-General and Director of the United Nations Development Programme (UNDP) Regional Bureau for Arab States, emphasized that economic diversification is vital for enhancing resilience against economic and geopolitical challenges, promoting sustainable growth, and facilitating transitions to a green economy and digital transformation.

H.E. Dr. Ali bin Sebaa Al Marri, the Executive President of MBRSG, echoed this sentiment by asserting that economic diversification is crucial for sustained development and global recovery. He highlighted the index’s role in providing governments with valuable insights to inform diversification strategies and targeted policy reforms, aligning with the UAE’s vision for a sustainable future.

The report also reiterated the importance for commodity-dependent countries, particularly those reliant on oil and gas, to implement policies that avoid the natural resource curse and foster sustainable economic growth. The 2025 EDI continues to explore the impact of digital trade on economic diversification, indicating that countries incorporating digital indicators in their trade assessments tend to improve their rankings even further.