The UAE has been ranked the seventh best destination for expatriates to live and work, based on the high quality of life it offers and job opportunities, according to a report by global network InterNations. It was 10th on the index last year.
Panama topped the global list, with Colombia and Mexico in second and third, respectively, InterNations said in its annual Expat Insider 2025 report released on Tuesday.
Asian countries dominate half of the list, with Thailand and Vietnam fourth and fifth on the index. Also in the top 10 were China, Indonesia, Spain and Malaysia.
Some of the worst-ranked places for expats were Kuwait, Turkey, South Korea, Finland, Germany, the UK and Canada.
InterNations polled 10,085 people in 46 countries, asking questions based on five categories: quality of life, ease of settling in, working abroad, personal finance and an expats' essentials index, which covers digital life, administration, housing and language.
“A high quality of life [ranked second] and no issues when it comes to the expat essentials [first], such as housing and language, mean that the UAE once again places in the top 10 of the Expat Insider survey, ranking seventh out of 46 destinations in 2025," said InterNations, which has more than 5.7 million members.
"The working abroad [fifth] and ease of settling in [11th] indexes are nothing to scoff at either."
The UAE, the Arab world’s second-largest economy, has introduced several economic, legal and social reforms in recent years to strengthen its business environment, boost foreign direct investment, attract skilled workers and provide incentives to companies to set up or expand their operations.
In 2019, amendments were introduced to the golden visa initiative to simplify the eligibility criteria and expand the categories of beneficiaries.
The 10-year visa is granted to investors, entrepreneurs and skilled professionals who earn a monthly salary of more than Dh30,000 ($8,167), as well as exceptional talent, scientists and professionals, outstanding students and graduates, property investors, humanitarian pioneers and front-line heroes.
A green visa provides a five-year residency for skilled employees without the need for a sponsor or employer. The minimum educational level is a bachelor’s degree or equivalent and the salary should be no less than Dh15,000.
The UAE introduced a one-year digital nomad visa in March 2021 that allows people to live in the Emirates while continuing to work for employers in their home countries.
Dubai also offers a five-year retirement visa for expats older than 55.
Expats said it was easy to obtain a visa in the UAE, find housing and live without speaking the local language, InterNations said. The country also ranked first for the online availability of administrative and government services, it added.
The UAE came second globally in the quality of life category, after Spain, and was top in the subcategory of personal safety, while it ranked second in infrastructure for cars and political stability.
Watch: Changes to the UAE's Golden Visa eligibility criteria
About 82 per cent of expats in the UAE said they are satisfied with the quality of health care. The country also scored highly for the availability of leisure options.
The country ranked fifth in the working abroad index, which covers career prospects, salary and job security. Foreign workers rated the country’s economy and job market positively.
Work remains a major motivation for relocating to the UAE, with 58 per cent of expats naming job-related reasons, InterNations found.
For the second year in a row, respondents rated the UAE’s economy as the best in the world. They ranked the Emirates’ job market as the third best globally and second best for personal career opportunities. Up to 78 per cent of expats said moving to the UAE had improved their career prospects, compared to the global average of 55 per cent, InterNations said.
Around three quarters of respondents said they feel welcome in the UAE and agree people here are friendly towards foreign residents, it added.
The best destinations for expats in 2025
- Panama
- Colombia
- Mexico
- Thailand
- Vietnam
- China
- UAE
- Indonesia
- Spain
- Malaysia
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
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