Saudi Arabia Surpasses 30 Global Ranks, UAE Leads in Economic Diversification
During the World Government Summit 2025
Issued by the Mohammed bin Rashid School of Government at the World Government Summit
- UAE Named Most Diversified Economy in the Gulf Region According to the “Global Economic Diversification Index 2025”
- The 2025 edition of the index expands to cover 115 countries, compiling data over 24 years.
- Commodity-dependent countries need effective policies to mitigate the risks of relying on natural resources.
- The United States, China, and Germany retained the top three global rankings.
- Among GCC countries, Bahrain and the UAE have been among the most diversified economies over two decades, with the UAE leading in the trade sub-index.
- The 2025 edition of the index continues to measure the impact of digital trade on economic diversification.
- Among commodity-dependent nations, Mexico and Malaysia secured top rankings, while some Arab countries made significant progress, including Saudi Arabia, which advanced more than 30 places, and the UAE, which climbed 24 spots over the past two decades.
The Mohammed bin Rashid School of Government unveiled the fourth edition of the “Global Economic Diversification Index” during a keynote session at the World Government Summit 2025, held under the theme “Shaping Future Governments.”
The session, which took place on the second day of the summit, featured a keynote speech by. Dr. Abdallah Al Dardari, Assistant Secretary-General of the United Nations and Assistant Administrator and Director of the UNDP Regional Bureau for Arab States.
The session was moderated by Dr. Fadi Salem, Director of Policy Research at the Mohammed bin Rashid School of Government.
Economic Diversification: A Shield Against Global Disruptions
Dr. Al Dardari emphasized:”According to the 2025 Global Economic Diversification Index, economic diversification reduces exposure to economic and geopolitical shocks by broadening the economic base.
This approach enhances resilience, supports sustainable growth, and enables nations to adapt to global shifts, including the green economy transition and digital transformation.
By investing in a range of sectors and fostering innovation, we can build strong economies that create prosperity and opportunities for all.”
From his side, Dr. Ali bin Sebaa Al Marri, CEO of the Mohammed bin Rashid School of Government, stated:”Economic diversification has long proven to be a crucial driver of sustainable development and a key pillar of global economic stability and recovery.
The ‘Global Economic Diversification Index’ aims to provide governments with in-depth insights into the factors driving successful diversification efforts, offering guidance on diversification strategies and highlighting necessary policy reforms to ensure their success.”
He added:”Our efforts in producing this index align with the UAE’s vision for building a sustainable future through economic diversification.
Our mission extends beyond preparing future leaders; we also focus on developing the tools they need to make data-driven, informed decisions.”
Measuring Economic Diversification on a Global Scale
First published in 2022, the index provides a comprehensive measure of economic diversification worldwide, addressing critical data gaps and offering evidence-based insights for tracking diversification efforts.
It evaluates economies based on three core dimensions:
- Government Revenue Diversification
- Output Diversification
- Trade Diversification
This approach enables countries to assess their diversification progress, compare their performance globally, and identify key enablers and obstacles to diversification efforts.
Key Findings of the 2025 Index
The 2025 edition of the Global Economic Diversification Index expands its scope to cover 115 countries over a 24-year period, using publicly available indicators to ensure transparency and reproducibility.
Global Rankings: The United States, China, and Germany retained the top three positions globally.
GCC Region: The UAE and Bahrain were identified as the most diversified economies in the GCC, with the UAE leading in the trade sub-index in recent years.
Commodity-Dependent Economies: Mexico and Malaysia ranked highest among commodity-driven economies.
Several Arab nations also recorded significant improvements, including Saudi Arabia, which advanced more than 30 places, and the UAE, which climbed 24 positions between 2000 and 2023. Kazakhstan moved up 17 places, Qatar 12 places, and Oman 10 places.
The Importance of Digital Trade in Economic Diversification
Building on the previous edition, the 2025 report continues to explore the impact of digital trade on economic diversification.
The findings reveal that countries ranking in the top 20% of the index tend to perform even better when digital trade indicators are factored into the Trade+ sub-index.
Policy Implications and Recommendations
The report underscores that commodity-dependent economies—particularly those reliant on oil and gas—must adopt policies to mitigate the risks of over-reliance on natural resources while fostering sustainable economic growth.
To design effective economic policies, commodity-exporting nations must consider three critical factors:
- Climate change implications on commodity production and extraction.
- The global energy transition’s impact on demand for commodities, including fuels and minerals.
Ongoing geopolitical risks and trade fragmentation, particularly for low-income and emerging market economies, which may face long-term production losses.
By providing a globally recognized benchmark, the Global Economic Diversification Index serves as a timely tool for tracking diversification trends since 2000, considering the profound shifts occurring in the digital era.
The 2025 edition offers key policy insights that can help governments design resilient economic strategies to navigate future challenges.
