Time Out 2025 Index: Abu Dhabi Tops Happiest Cities List, Dubai Shines at 16th
Turns out, happiness has an address this year.
And it’s Abu Dhabi.
Time Out’s 2025 Index has named it the happiest city in the world.
Locals already knew this, and now everyone else does, too.
Dubai also made the list, sitting comfortably at number 16. That’s not bad for a city that never really stops to rest.
But this isn’t just another ranking.
It’s a glimpse into how cities are changing; building spaces that don’t just look good in photos but actually feel good to live in.
Because happiness isn’t just luck, it’s design, safety, balance, and a bit of soul.
And right now, the UAE is getting that mix just right.
About the Time Out 2025 Happiness Index
So, what exactly is this Time Out 2025 Happiness Index everyone’s quoting?
It’s not some random list someone threw together over coffee. It’s built on voices — real ones.
More than 18,000 people from cities worldwide shared what life in their hometowns actually feels like.
The survey asked about five big things.
- Do people feel happy where they live?
- Do they feel connected to their community?
- Are they proud of their city?
- Do they find it inspiring?
- Do they feel like life there is fulfilling?
Those answers became the backbone of the ranking. The idea’s clever but straightforward: instead of measuring happiness through GDP or data points, Time Out asked the people living in the city daily. It’s about quality of life, community spirit, and that personal spark — the stuff you can’t measure but feel when it’s there.
Abu Dhabi’s Top Ranking Highlights
You don’t need numbers to feel it, but the numbers help.
Almost 99% of Abu Dhabi residents told Time Out they’re happy living there. That’s a city speaking with one voice.
Ask anyone and they’ll tell you — it’s the small things. The calm. The way parks pop up between glass towers. The sense that someone planned this place for humans, not just cars.
People talk about safety first, always. Safety in Abu Dhabi makes life easy in ways you don’t notice until you travel somewhere else. There’s also the balance: wide green spaces on one side, glittering towers and cafés on the other.
And somehow, it all works.
The city manages to be both a business hub Abu Dhabi depends on and a place where you can take a long walk without stress. Add the zero income tax Abu Dhabi setup to the mix, and you start to see why the vibe stays so light.
Work hard, live easy — that seems to be the mood here.
Dubai’s Position Among the Happiest Cities
Now to Dubai. Sitting at number 16 on the Time Out 2025 Index. That’s a good place to be, right next to global heavyweights like Hanoi and Glasgow.
Not bad for a city that’s constantly running on ideas and ambition.
People love its mix.
You walk through the city and hear half the world’s languages in one block. That multicultural environment is part of its charm. It feels like everyone belongs. The energy is different in Dubai: quick, confident, always moving.
The city’s money side plays a role too.
With 100% foreign ownership, Dubai attracts dreamers and doers who want to build something real. It’s also a financial center that Dubai takes pride in; stable, modern, and open to risk-takers.
But it’s not all boardrooms and deals.
There’s Dubai tourism & leisure, the weekend escapes, the beach cafés, and the festivals that pop up just when you need a break. Add to that the city’s push toward a Dubai sustainable city future — more greenery, cleaner transport, and smarter buildings, and you can see why life here feels balanced.
Sixteenth place sounds small until you realize the list includes every major city that claims to be livable.
Dubai doesn’t just make the cut; it shapes the standard.
Tax Benefits and Startups Advantages in Abu Dhabi and Dubai
There’s another layer to all this happiness — money.
The UAE’s tax setup is a big reason both Abu Dhabi and Dubai score high on overall well-being. A zero income tax Abu Dhabi policy means more freedom for residents to enjoy what they earn.
Add a low, simple corporate tax structure, and you’ve got a country where ambition feels rewarded instead of punished.
That’s part of what makes Abu Dhabi tax-friendly. It’s not just about saving money — it’s about what that freedom allows people to build. Families can plan better. Entrepreneurs can take more risks. People have room to live, not just survive.
Then there’s Dubai, always the hustler of the two. With 100% foreign ownership, Dubai makes it easier for global startups to plant roots. Its financial center, the Dubai ecosystem, is packed with accelerators, venture funds, and investors looking for the next big thing.
Free zones turn ideas into companies fast — no red tape, no fuss.
Across both cities, government incentives keep the innovation wheel spinning. You see it in grants, mentorship programs, and policies that make investing in Abu Dhabi or scaling a startup in Dubai easier.
The message is clear: dream big, build fast, and don’t let taxes slow you down.
Economic Growth and Investment Climate
Behind the smiles, there’s solid math.
The UAE’s economy isn’t just growing — it’s steady, confident, and built to last.
GDP growth continues to be strong, with recent figures hovering around the 4% mark and projections staying positive. For a small country with big ambitions, that’s serious momentum.
What keeps it going? Stability. Policy consistency. A sense that the rules won’t suddenly change overnight. Businesses trust that. Investors trust that. It’s one of the quiet reasons Abu Dhabi and Dubai keep drawing global attention.
Each sector plays its part. Tourism is booming — think Dubai tourism & leisure, where hotels, beaches, and events bring in millions every year.
Finance continues to anchor Dubai’s financial center, while real estate and technology push boundaries in design and innovation. In the capital, smart planning and the business hub Abu Dhabi vision keep the numbers climbing.
But here’s the interesting link — happiness and economics aren’t separate stories anymore.
Cities that make people feel safe, valued, and supported attract better talent and more substantial investment. That’s where safety in Abu Dhabi, cultural depth, and smart policy come together.
The result? A growth model that isn’t just about money — it’s about mindset.
Insights on What Drives Urban Happiness
What makes people happy in a city?
It’s not just fancy buildings or shiny towers. It’s how life actually feels day to day.
Community matters. When neighbors talk, kids play safely outside, and people look out for each other, the city hums. That’s where safety in Abu Dhabi really shows. Combine that with culture, music, food, and festivals, and you get a vibe that lifts everyone.
Green spaces and parks aren’t just pretty. They give people room to breathe. Good transport, public services, and easy access to everyday things make life smoother. That’s what the Dubai sustainable city concept aims for — practical, livable, and full of little joys.
Then there’s money and work. Jobs that pay, policies that protect, and freedom to invest or start something new — like in a business hub, Abu Dhabi, or a city with zero income tax, Abu Dhabi — give people confidence.
You feel secure, you plan ahead, you live happier.
Happiness, in the end, isn’t a single thing. It’s a mix: safe streets, cultural buzz, smart design, and economic stability all rolled into one.
And when a city nails that mix, people notice.
Broader Implications for the UAE Urban and Economic Strategy
So what does all this happiness stuff actually mean for the UAE?
It’s bigger than showing off rights.
These rankings show that measuring people’s feelings isn’t just fun — it’s smart policy. Cities that score high get it: you can plan better, build better, and keep people sticking around.
This aligns perfectly with the UAE Vision 2031 for Abu Dhabi and Dubai. Happiness, safety, and quality of life aren’t just nice extras; they’re part of a bigger plan.
Economic diversification, attracting talent from everywhere, and keeping people engaged all depend on how livable a city feels.
Other emirates are taking notes.
If a city can mix green spaces, good infrastructure, and community trust with strong business opportunities, like the business hub Abu Dhabi, or a financial center like Dubai, residents thrive, investors notice, and the whole region benefits.
At the end of the day, it’s not just about being rich or flashy. It’s about feeling like life works. And that’s a lesson the UAE seems to be teaching the world, one happy city at a time.
Quotes and Reactions
Officials in Abu Dhabi are clearly proud, but not boastful. One city planner said, “We’ve tried to make life easier, calmer, more connected. Seeing residents respond like this? That’s the reward.”
Economists point out the numbers behind the smiles. A local expert explained, “Policies like zero income tax in Abu Dhabi and business hub Abu Dhabi initiatives aren’t just incentives. They change how people live, attract talent, and create confidence.”
Residents have their own take. “It feels safe. You can walk anywhere. You can plan your life without constant stress,” said one long-time Abu Dhabi resident. Another in Dubai added, “The city keeps changing, but in a way that works for people. Life feels balanced between 100% foreign ownership in Dubai, the financial center, and the parks.”
Even government voices highlight that this isn’t a one-off. Continuous efforts in public services, urban planning, and economic policy are meant to keep both happiness and competitiveness high. It’s a constant push to make the cities livable, attractive, and resilient.
Global Perspective and Comparison
The results are eye-opening when you put Abu Dhabi and Dubai on the global map.
Abu Dhabi’s number one ranking isn’t just a local win; it beats cities known for being “happy” for decades.
And Dubai’s number 16 ranking is ahead of many European and Asian hubs that people assume lead the pack.
What makes the UAE stand out isn’t just money or skyscrapers. It’s the mix: modernity and tradition, luxury and accessibility, a multicultural environment where people from all over feel at home, parks and public spaces alongside the city buzz. Policies like zero income tax in Abu Dhabi or 100% foreign ownership in Dubai make life easier while still pushing growth.
The combination of safety, Dubai tourism & leisure, thoughtful urban planning, and economic opportunity shows that happiness and development can go together. It’s a lesson other countries are starting to notice.
Put simply, the UAE is not just building cities. It’s creating a formula for living well.
ADEPTS’ Role in Supporting the UAE Business Community
Then there’s the role of advisors, who make all this easier to navigate. ADEPTS has been helping startups and SMEs make the most of the UAE’s advantages without getting lost in paperwork.
They guide entrepreneurs step by step from company formation to tax planning in Abu Dhabi and Dubai. They make policies like zero income tax in Abu Dhabi, a business hub, and 100% foreign ownership in Dubai, practical, not just theoretical.
Free zones, government incentives, and regulatory frameworks can be tricky.
ADEPTS helps businesses leverage these tools effectively so startups can grow faster, smarter, and more sustainably.
The goal? Not just profits, but growth that aligns with the UAE’s bigger picture: urban wellbeing, economic diversification, and a quality-of-life boost that feeds back into happier cities.
Conclusion
So here’s the takeaway: Abu Dhabi tops the happiness charts, and Dubai holds strong at 16th. Together, they’re showing the world that the UAE isn’t just building cities — building lives that feel good.
A lot of that comes down to smart choices: zero income tax in Abu Dhabi, a business hub in Abu Dhabi, 100% foreign ownership in Dubai, and policies that support growth while keeping people happy.
Money and life don’t have to fight — here, they work together.
Partners like ADEPTS keep the engine running.
They guide startups and SMEs, help leverage free zones, navigate regulations, and ensure ambition meets opportunity. That’s part of why the UAE’s business ecosystem feels alive and sustainable.
The bigger picture? This isn’t a one-off win. With thoughtful planning, firm policy, and a focus on people, the UAE is set for sustained happiness and long-term economic success. Residents, investors, and visitors can all feel it — the cities aren’t just impressive, they’re built to improve life.
