The UAE advanced 4 places to the 14th position in the world, and maintained its regional lead on the Index of Economic Freedom for the year 2021, issued by the British "Heritage Foundation" for research annually, as it got 76.9 points out of 100 on the general classification index.
The UAE advanced over global economies such as the Netherlands, Finland, the United States, Japan, South Korea, Austria and Germany. The UAE’s rating increased due to improved solvency and financial quality.
Economic freedom is considered essential for the UAE to enhance its efforts to diversify the components of its domestic economy away from the oil sector, while opening its doors to foreign investment would be an added advantage to its growing economy.
According to the Heritage Foundation, the UAE enjoys an open economy and a large annual trade surplus, while oil and gas represent about 30 percent of the country's GDP.
The Index of Economic Freedom consists of 4 components that are divided into a number of sub-indicators. The main components are the rule of law, size of government, effectiveness of regulatory measures, and market openness.
Source (Al Khaleej Emirati Newspaper, Edited)
