The United Arab Emirates (UAE) has the most efficient government, which is the strongest in decision making and has the lightest bureaucracy in the world, according to a major annual report by the Switzerland-based International Institute for Management Development (IMD).

The World Competitiveness Yearbook 2014, released Friday, also ranks the UAE as number one globally for low government debt, effective corporate boards, and quality of air transport.

Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum welcomed the findings in a personal message to government employees.

“The title of ‘most efficient government in the world’ was earned by the commitment and dedication of every member of UAE government team. We are truly transforming public service in UAE, and here is the proof. We have shown what can be achieved on the world stage by a small nation with big ideas.”

The IMD report is a worldwide reference point for the competitiveness of nations. It covers 60 countries and analyses how well each economy manages its resources in order to generate prosperity for people.

On the headline measure of global competitiveness, UAE ranked eighth in the world for 2014, above Denmark (ninth) and Norway (tenth). The UAE also ranked eighth the previous year.

Sheikh Mohammed urged government employees to sustain their ongoing drive to improve the quality of government service, cautioning against complacency.

“Let us never forget: competitiveness is a race with no finish line. We must never stop improving: even as number one, we have a duty to do better tomorrow, and everyday. Because this is also a race with the richest of prizes: a government that delivers happiness and prosperity to all of the people of UAE,” Sheikh Mohammed said.

The IMD report is based on more than 330 sub-indices based on statistical indicators and questionnaire data. The UAE ranked number two in the world on four sub-indices: strong trade balance, budget surplus, ease of doing business, and labour force growth. It ranked number three in the world on measures of the current account balance, transparency, and stock markets.

In the questionnaire data, business executives attributed the UAE’s attractiveness to economic dynamism, a business-friendly environment, competent government, reliable infrastructure and a competitive tax regime.