UAE Tops Arab World Prosperity Rankings

The United Arab Emirates Leads Arab World Prosperity: UN Report

The United Arab Emirates (UAE) provides the highest level of material well-being to its residents in the Arab region, according to a newly released UN report. The report positions UAE ahead of Kuwait and Qatar, noting that residents of oil-rich Gulf countries possess remarkable purchasing power, making the region one of the highest income areas globally. Material well-being encompasses not just economic indicators but also includes the physical, mental, and financial health of residents.

What is Material Well-Being and How is it Measured?

To measure material well-being, there's a growing method apart from the traditional GDP per capita, which is Actual Individual Consumption (AIC) per capita. This metric considers not only the goods and services directly purchased by households but also those provided by the state or nonprofit organizations. Therefore, it offers a more accurate picture of the population's material status and living standards.

According to the UN Economic and Social Commission for Western Asia (ESCWA) report, globally, UAE ranks 24th in terms of material well-being, with Kuwait at 37th and Qatar at 38th. Although Qatar boasts the highest GDP per capita in the Arab region, it ranks only third in material well-being, showing that a high income doesn't automatically equate to a higher standard of living.

What Makes UAE Stand Out?

Several factors contribute to the UAE's material prosperity. Health insurance is mandatory, which aids in maintaining residents' physical health. Additionally, the Involuntary Loss of Employment (ILOE) scheme provides some protection against unemployment, and completion gratuity is available for private sector employees, enhancing the sense of financial security.

The significant purchasing power of UAE residents also supports their high material well-being. In the Gulf oil-producing countries, per capita income is among the highest in the world, allowing residents to widely enjoy the comforts and opportunities of modern living.

Economic Situation of the Region

The ESCWA report states that the Arab economy constitutes nearly 5% of the world's GDP. Within this, Egypt and Saudi Arabia rank among the world's 20 largest economies and significantly contribute to the regional economy. Egypt accounts for 27% of the regional GDP, while Saudi Arabia accounts for 24%.

The Actual Individual Consumption (AIC) measured using purchasing power parity (PPP) indicates that although Qatar is the wealthiest country in the region, it is not at the forefront regarding material well-being. In contrast, UAE and Kuwait secured higher positions, suggesting that efficient allocation of economic resources and the services provided to citizens contribute to a higher standard of living.

The Question of Costliness and Affordability

For consumers, Qatar is the most expensive country in the Arab region, followed closely by the UAE and Kuwait. Conversely, Syria remains the cheapest country, with Egypt and Sudan in second and third places. These price differences also affect residents' material well-being, as a lower cost of living translates to greater purchasing power for local residents.

Conclusion

The UAE is not only economically outstanding in the Arab region but also leads in material well-being. Alongside high incomes, state services, health insurance, and measures promoting financial security contribute to enabling the country's residents to enjoy one of the highest living standards globally. While other Gulf countries like Qatar and Kuwait also achieve high positions, the UAE uniquely combines economic strength with extensive support for the material well-being of its residents.

This report showcases the economic situation of the Arab region and indicates that high incomes alone are not sufficient for residents to enjoy a high level of material well-being. The UAE example demonstrates that the harmonious balance between economic growth and social development is crucial for sustainable development and achieving a high standard of living.