The prosperity index, in its 13th year, determined how well 167 countries promote the economic and social well-being of their residents in three domains: inclusive societies, open economies and empowered people.

The UAE is once again the most flourishing Arab nation and maintained its rank in the global top 40 through continued improvements in its business environment.

The UAE came in 40th place this year, keeping its spot in the top 40 for the fifth year in a row. A decade ago, it was 44th. It scored particularly well in the open economies category, which includes the investment environment, enterprise conditions, market access and infrastructure, and economic quality.

Chief executive of London think tank Legatum Institute, Philippa Stroud said, “It reaches beyond the financial into the political, the judicial and the well-being and character of a nation. The top 40 most prosperous nations are those that have demonstrated over time how to build prosperity.”

Within the open economies category, the UAE is considered to be third globally for the most flexible business regulations.

In the Legatum ranking’s inclusive societies category, which includes safety and security, personal freedom, governance and social capital, the UAE came in 65th. It came in 50th place in the empowered people category, which includes living conditions, health, education and natural environment.

The country has been diversifying its economy and implementing business-friendly reforms, including the introduction of long-term visas up to 10 years and decreasing the costs of setting up enterprises.

From manufacturing to renewable energy, it has allowed 100 per cent foreign ownership of companies in 13 sectors.

In the Mena region, Saudi Arabia has improved its success over the past decade to 71st from 85th. The kingdom recently was the top improver in the World Bank's Doing Business 2020 report, jumping 30 spots from last year, as it carries out betterment to attract investment and diversify beyond oil.

Improvements in the Emirates since 2009 include a jump in primary education to 48th from 91st. “That’s a successful push there,” says Mr Brien.