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United Arab Emirates Continues as Most Prosperous Arab Nation, Ahead of Kuwait, Finds Legatum Prosperity Index

- Lack of Freedoms Strongly Limit Prosperity in Other Arab States;Egypt, Iran and Yemen Amongst the Worst

The third edition of the Legatum Prosperity Index, published today, ranks 104 countries (covering 90% of the world's population), based on a definition of prosperity that combines economic growth together with measures of happiness and quality of life. At 47th, the UAE is the only Arab nation ranked in the top 50 for the second year running, thanks to strong scores in security and safety, and health. In contrast, several otherMiddle East and North African nations are clustered in the bottom quarter, such asSaudi Arabia (81st),Egypt, (88th),Iran (94th),Algeria (96th), andYemen (102nd).

"The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing," said Dr. William Inboden, Senior Vice President of the Legatum Institute. "While several countries in the region are taking positive steps towards reform, the Prosperity Index demonstrates that the region still faces considerable challenges in developing its economic potential as well as improving the quality of life of its citizens," he continued. "There are some bright spots, such as relatively high ranks on Safety and Security for the UAE (18th) andKuwait (24th). But to catch up to the rest of the world, most countries across the region should focus upon access to freedoms, economic factors, good governance, and the general well-being of their citizens, " concluded Dr. Inboden.

    Key Findings from the 2009 Legatum Prosperity Index:

    - Finland tops the Index, followed by Switzerland, Sweden, and
      Denmark; the United States is 9th and the United Kingdom is 12th.

    - The UAE scores in the top global tier on Health (29th) and
      Safety and Security (18th), but in the lowest tier on Democratic
      Institutions (98th) and Social Capital (77th).

    - Iran performs poorly across the board, and is near the
      global bottom in Governance (102nd) and Personal Freedom (101st).

    - Egypt also lags far behind global averages, ranking near the
      bottom in Personal Freedom (95th) and Social Capital (100th).

    - Jordan (80th overall) and Tunisia (68th overall) are in the
      middle tiers in Education, Health, Safety and Security, and Governance,
      indicating areas with potential for continued improvement.

    - Despite its massive petroleum wealth, Saudi Arabia's overall
      rank (81st) suffers from very poor performances in Entrepreneurship and
      Innovation (81st), Democratic Institutions (101st), and Personal
      Freedom (98th).

    - Yemen at 102nd overall continues to face major challenges,
      ranking in the bottom global tier in every category.

The Prosperity Index identifies nine key factors that drive economic growth and personal wellbeing, which are the foundations of prosperity. Each of these nine factors is represented in a sub-index and a country's final Prosperity Index ranking is generated by averaging its scores across all nine sub-indexes, equally weighted. More information on the Prosperity Index, including full country rankings, background on data and methodology, and profiles of each country can be found at http://www.prosperity.com.

Notes to Editors:

About the Legatum Prosperity Index

    The 2009 Legatum Prosperity Index is based on statistical analysis of
more than 40 years of data for more than 100 countries worldwide, produced
and supervised by the Legatum Institute, with input from the research
consultancy Oxford Analytica and a panel of respected academic advisors in
the fields of economics, history, development, sociology, and political
science.

       TOP TWENTY COUNTRIES          MIDDLE EAST & NORTH AFRICA
    1. Finland                   27. Israel
    2. Switzerland               47. UAE
    3. Sweden                    53. Kuwait
    4. Denmark                   68. Tunisia
    5. Norway                    80. Jordan
    6. Australia                 81. Saudi Arabia
    7. Canada                    83. Morocco
    8. Netherlands               86. Lebanon
    9. United States             88. Egypt
    10. New Zealand              94. Iran
    11. Ireland                  96. Algeria
    12. United Kingdom           102. Yemen
    13. Belgium
    14. Germany
    15. Austria
    16. Japan
    17. France
    18. Hong Kong
    19. Spain
    20. Slovenia


        BOTTOM TEN COUNTRIES
    95.  Kenya
    96.  Algeria
    97.  Tanzania
    98.  Nigeria
    99.  Pakistan
    100. Cameroon
    101. Central African Republic
    102. Yemen
    103. Sudan
    104. Zimbabwe

How the Index is constructed

The Prosperity Index accounts for 90 percent of the world's population, using a combination of objective data and subjective responses to surveys. This data comprises 79 different variables, and each is then distilled into one of the nine different sub-indexes identified as a foundation of prosperity. A country's performance in each sub-index is given a score, and the overall Prosperity Index rankings are produced by averaging the equally-weighted scores of the 9 sub-indexes for each country. Those countries that perform well across each sub-index score highest in the overall rankings.

    The nine foundations of prosperity that define successful nations are:

    - Economic Fundamentals - a growing, sound economy that
      provides opportunities for wealth creation

    - Entrepreneurship and Innovation - an environment friendly to new
      enterprises and the commercialisation of new ideas

    - Education - an accessible, high-quality educational system that
      fosters human development

    - Democratic Institutions - transparent and accountable governing
      institutions that promote economic growth

    - Governance - an honest and effective government that preserves
      order and encourages productive citizenship

    - Health - the physical well-being of the populace

    - Personal Freedom - the degree to which individuals can choose the
      course of their lives

    - Security - a safe environment in which people can pursue
      opportunity
    - Social Capital - trustworthiness in relationships and strong
      communities

About the Legatum Institute

The Legatum Institute ("LI") is an independent policy, advocacy and advisory organisation. The Institute's mission is to research and promote the principles that drive the creation of global prosperity and the expansion of human liberty and wellbeing.

For more information about the Legatum Institute, please visit http://www.li.com.

The Institute is part of the Legatum Group, a private global investment organization focused on investing in the international capital markets and the promotion of sustainable development.

For more information about the Legatum Group, please visit http://www.Legatum.com.

    Media Enquiries

    London
    William Inboden, Legatum Institute
    Telephone: +44-20-7148-5400
    william.inboden@legatum.com

    Nick Wood, Media Intelligence Partners
    Telephone +44-20-3008-8146
    Email: nickwood@nickwood.demon.co.uk

    Dubai, UAE
    Hamish Banks, Legatum
    Telephone: +971-4-317-5800
    Email: hamish.banks@legatum.com

    Nicole Anwer, Legatum
    Telephone: +971-4 317-5800
    Email: nicole.anwer@legatum.com

    New York
    Michael Iacovella, Edelman
    Telephone +1-212-704-8254
    Email: michael.iacovella.@edelman.com

    Mumbai
    Arwa Husain, Adfactors PR
    Telephone +91-22-2281-3565
    Email: arwa.husain@adfactorspr.com

SOURCE Legatum