Picture: Qatar Tourism
Doha, Qatar: Qatar has advanced to the second position in the Middle East and North Africa (MENA) region, rising from last year’s third place, in the 2025 Global Economic Freedom Index released by The Heritage Foundation.
The recent rating, which indicated a rise of 1.4 points in the overall score to 70.2 from last year’s 68.8, demonstrates the nation’s continuous commitment to enhancing trade openness, improving regulatory efficiency, and strengthening fiscal resilience. This shift is consistent with Qatar’s persistent economic growth, fueled by its leadership in LNG exports and diversification strategies outlined in the Qatar National Vision 2030.
The Heritage Foundation’s index, which evaluates 12 factors across the rule of law, government size, regulatory efficiency, and open markets, highlights Qatar’s strengths in tax burden (99.9), fiscal health (96.2), and trade freedom (81.6), areas where it consistently excels. In property rights, Qatar scored 71.1; judicial effectiveness (42.3); government integrity (52.6); government spending (78.1); business freedom (67.9); labour freedom (59.3); monetary freedom (73.2); investment freedom (60); and financial freedom (60).
Qatar’s score exceeds the 2025 global average (59.7, up from 58.6) and MENA average (57.4), affirming its outlier status in a region often marked by “mostly unfree” or “repressed” economies. However, challenges persist, government spending (29.4% of GDP) and public debt (42.4% of GDP) could pressure fiscal health, while reliance on expatriate labour and moderate investment freedom scores highlight structural limits.
Only two GCC economies—the UAE and Qatar—in the region typically achieve “mostly free” or “moderately free” status, with Qatar’s 2025 performance, which is just behind the USA (26th position), reinforcing this elite tier.
Globally, Qatar is ranked 27th, just behind 26th-ranked the USA (70.2).
Singapore, with a total score of 84.1, tops the list, while Switzerland (83.7), Ireland (83.1), Taiwan (79.7), Luxembourg (79.5), Australia (79.3), Denmark (79.1), Estonia (78.9), Norway (78.3), and the Netherlands (78.2) complete the top ten freest countries out of the 184 countries ranked by the Washington-based think tank.
Regionally, the UAE was ranked 23rd, while the next ranked country after Qatar, Bahrain (65.6), comes in the 55th position, and Oman (65.4) is 58th. Saudi Arabia (64.4) is ranked 62nd, while Kuwait (59.9) is in the 88th position.
The report noted that fiscal soundness has deteriorated significantly globally, and rising deficits and mounting public debt in many countries have undermined and likely will further undercut their overall productivity growth and lead ultimately to economic sluggishness rather than vibrant growth.
Qatar’s 2025 ranking reflects a blend of structural advantages and proactive reforms.
Its near-zero tax regime (0% individual and corporate income tax) and robust fiscal health, underpinned by LNG revenues and the Qatar Investment Authority’s $526bn of assets under management, anchor its economic freedom.
Trade freedom benefits from Qatar’s role as the world’s top LNG exporter, with exports to Asia and Europe surging amid the North Field expansion, set to increase capacity from 77 to 126 million tonnes per annum by 2026. The report praised Qatar’s “open trade regime and growing status as a regional financial hub,” trends likely amplified by tourism growth (4 million visitors in 2024) and private-sector initiatives.
Regulatory efficiency has also improved, with streamlined business licensing and property registration boosting Qatar’s business freedom (66.1 in 2024). The Third National Development Strategy (2024–2030), launched in 2024, targets 20% Qatari participation in private-sector jobs and 4% non-hydrocarbon GDP growth, signalling intent to reduce oil dependency—a key factor in economic freedom scores. Property rights (70.4) and government integrity remain above global averages, reflecting a stable legal framework, though investment freedom (60) is tempered by sector-specific foreign ownership caps.
According to the report, the 2025 Index, which considers economic policies and conditions in 184 sovereign countries from July 1, 2023, through June 30, 2024, reveals a world economy that, taken as a whole, remains “mostly unfree.”
Out of the countries rated in the 2025 Index, only three countries (down from four in the previous year) have earned a designation of economically “free” by recording scores of 80 or more; 26 earned a designation of “mostly free” by recording scores of 70.0 to 79.9; and an additional 58 were considered at least “moderately free” with scores of 60.0 to 69.9.
Thus, a total of 87 countries, or slightly less than half of the countries graded, have institutional environments in which individuals and private enterprises benefit from at least a moderate degree of economic freedom in the pursuit of greater economic development and prosperity.
