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Abu Dhabi, Dubai named world’s most tax-friendly cities in 2025 index, Muscat in top 20

Abu Dhabi and Dubai have clinched the top two spots in the 2025 Tax-Friendly Cities Index, placing the UAE firmly at the forefront of global wealth havens in an era of rising taxation and financial uncertainty.

TAS News Service

info@thearabianstories.com

Thursday, August 7, 2025

ABU DHABI : According to Multipolitan’s 2025 Wealth Report titled “The Taxed Generation,” Abu Dhabi ranked #1 out of 164 cities worldwide, edging out Dubai, which took second place. The index evaluates cities not just on tax rates, but also on legal stability, government trustworthiness, and investor-friendly policies.

Abu Dhabi’s rise to the top is credited to its complete lack of personal income tax, low property fees, and a highly dependable legal system. The city’s stable governance also plays a key role in attracting global investors seeking security and predictability.

Hot on its heels, Dubai secured the #2 spot thanks to its exceptional global connectivity, extensive tax treaty network, and clear, business-friendly regulations. Like Abu Dhabi, it benefits from the UAE’s zero personal income tax and pro-growth policies, making both cities attractive to high-net-worth individuals and international businesses.

The broader Gulf region also performed impressively, with seven GCC cities making the top 20, highlighting the region’s growing reputation as a secure, low-tax zone for wealth preservation and expansion. Riyadh ranked 12th, Muscat 17th, followed closely by Manama and Doha, both tied with a score of 611.9.

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