Qatar has climbed to second place in the Middle East and North Africa (MENA) region in the 2025 Global Economic Freedom Index, up from third place last year. The ranking, published by The Heritage Foundation, highlights Qatar’s strong fiscal health, trade openness, and regulatory efficiency, reinforcing its position as one of the most economically free countries in the region.
The country’s overall score increased by 1.4 points, rising from 68.8 to 70.2, reflecting continuous efforts to enhance economic resilience. This improvement aligns with Qatar’s National Vision 2030, which emphasizes economic diversification beyond LNG exports and strategic regulatory reforms.
According to the Global Economic Freedom Index, Qatar excels in tax burden (99.9), fiscal health (96.2), and trade freedom (81.6). The country’s property rights score stands at 71.1, while business freedom (67.9) and monetary freedom (73.2) continue to show steady progress. However, challenges remain in judicial effectiveness (42.3), government integrity (52.6), and labor freedom (59.3).
Qatar’s performance places it above both the global average (59.7) and the MENA regional average (57.4), distinguishing it from many economies in the region categorized as “mostly unfree” or “repressed.” Despite this progress, government spending (29.4% of GDP) and public debt (42.4% of GDP) remain areas to monitor, as they could impact future fiscal sustainability.
Among Gulf Cooperation Council (GCC) nations, only the UAE and Qatar consistently achieve “mostly free” or “moderately free” rankings. Qatar’s position at 27th globally, just behind the United States (26th, 70.2), highlights its growing economic influence.
Singapore continues to lead the rankings with a score of 84.1, followed by Switzerland (83.7) and Ireland (83.1). In the MENA region, the UAE ranks 23rd, while Bahrain (55th, 65.6) and Oman (58th, 65.4) follow Qatar. Saudi Arabia ranks 62nd (64.4), while Kuwait comes in at 88th (59.9).
The report also warns that globally, fiscal soundness is deteriorating, with rising deficits and public debt likely to impact economic productivity. However, Qatar’s near-zero tax regime and robust financial foundation—bolstered by LNG revenues and the Qatar Investment Authority’s $526 billion in assets—continue to anchor its strong economic freedom ranking.
Qatar’s trade freedom is reinforced by its position as the world’s leading LNG exporter, with increasing shipments to Asia and Europe. The North Field expansion, set to boost LNG production from 77 to 126 million tonnes annually by 2026, will further enhance the country’s economic standing.
The report also commends Qatar’s growing status as a regional financial hub, supported by record tourism growth (4 million visitors in 2024) and private-sector initiatives. Regulatory improvements, such as streamlined business licensing and property registration, have contributed to Qatar’s business freedom score of 66.1 in 2024.
Looking ahead, the Third National Development Strategy (2024–2030) sets ambitious targets, including 20% Qatari participation in private-sector jobs and 4% non-hydrocarbon GDP growth, signaling a commitment to economic diversification. While property rights (70.4) and government integrity remain above global averages, investment freedom (60) is impacted by foreign ownership restrictions in certain sectors.
The 2025 Global Economic Freedom Index, covering economic policies from July 1, 2023, to June 30, 2024, classifies economies into different freedom categories. Of the 184 countries evaluated, only three received a “free” designation (scores of 80+), while 26 were categorized as “mostly free” (scores of 70-79.9), including Qatar.
With a strong financial position, increased trade openness, and ongoing regulatory improvements, Qatar’s 2025 ranking reflects a blend of structural advantages and proactive reforms that continue to shape its evolving economic landscape.
