UAE ranks among world's happiest countries as US falls to lowest place ever

The UAE has been ranked among the world’s happiest countries, after the release of an annual survey that assesses life satisfaction.

The Emirates has been ranked 21st in the 2025 World Happiness Report, above countries such as the UK (23rd), the US (24th) and France (33rd).

Finland is considered the world's happiest nation for the eighth year in a row, while Mexico and Costa Rica are in the top 10 for the first time since the report was first published in 2012. The US's placing is its worst since the report began.

Compiled by Gallup, the report ranks 147 countries by their happiness levels based on a population's average assessment of their quality of life from 2022 to 2024. “Happiness isn't just about wealth or growth, it's about trust, connection and knowing people have your back,” Jon Clifton, chief executive of Gallup, said.

Afghanistan is ranked as the unhappiest country in the world. Sierra Leone, in western Africa, is the second unhappiest, with Lebanon ranking third from bottom.

The report evaluates nations based on indicators such as income, economic production, social support, life expectancy, freedom, absence of corruption and generosity.

Earlier on Thursday, the UAE reaffirmed its commitment to enhancing the well-being and quality of life of all residents and citizens by marking the International Day of Happiness, state news agency Wam reported.

The Emirates was one of the first countries to integrate happiness as a central metric in government policies, and in 2016 it introduced the role of Minister of State for Happiness. Following a cabinet reshuffle in October 2017, the role was expanded to include the well-being portfolio. In July 2020, the portfolio for Quality of Life and Happiness was transferred to the Ministry of Community Development.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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UAE ranks among world's happiest countries as US falls to lowest place ever

Emirates ranks highest among nations in the region

Real estate tokenisation project

The National in Davos

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SUNDAY'S ABU DHABI T10 MATCHES