Review Article

Comparative Economic Analysis of Quality of Life in the GCC Countries during the Period 2016-2024

Adel M. Ghanem¹*, Khalid N. Alrwis¹, Mohammad H. Alqunaibet², Sattam F. Almadrra¹ and Sharafeldin B. Alaagib¹

¹Office of Food Security Studies and Research, Vice Rectorate for Postgraduate Studies and Scientific Research, King Saud University, Saudi Arabia

¹Agricultural Economics Department, College of Food and Agricultural Sciences, King Saud University, Saudi Arabia

Submission:February 4, 2025;Published: February 14, 2025

*Corresponding author:Adel M. Ghanem, Office of Food Security Studies and Research, Vice Rectorate for Postgraduate Studies and Scientific Research, King Saud University, Saudi Arabia

How to cite this article:Adel M. Ghanem, Khalid N. Alrwis, Mohammad H. Alqunaibet, Sattam F. Almadrra, Sharafeldin B. Comparative Economic Analysis of Quality of Life in the GCC Countries during the Period 2016-2024. Ann Soc Sci Manage Stud. 2025; 11(3): 555813.DOI: 10.19080/ASM.2025.11.555813

Abstract

Although the Gulf Cooperation Council is included in the group of high-income countries, they vary in the quality of life index, and therefore this study aimed to conduct a comparative economic analysis of the quality of life in the Gulf Cooperation Council countries during the period 2016-2024. This study showed the following: (1) The average quality of life index ranged between a minimum of 122.44 for the State of Kuwait and a maximum of 176.92 for the State of Oman, (2) The quality of life index was relatively stable, as the coefficient of variation ranged between a minimum of 2.61% for the Kingdom of Saudi Arabia and a maximum of 8.76% for the State of Kuwait, (3) The most important factors determining the quality of life in the Gulf Cooperation Council countries are represented by purchasing power, safety, traffic travel time, and climate index, (4) An increase of 10% in each of purchasing power, safety, and climate leads to an increase in the quality of life index, by percentages of 3.52%, 3.73%, 10.1% respectively, while increasing traffic travel time by 10% leads to a decrease in the quality of life index by 2.49%, (5) This study recommends the necessity of improving the quality of life index for each of the Kingdom of Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait, similar to the State of Oman, which ranked sixth in the world in the quality of life index in 2024, by increasing purchasing power, safety, and climatic conditions on the one hand, and reducing traffic travel time, especially in major cities, on the other hand.

Keywords:Satisfaction and Happiness; Purchasing Power; Safety Index; Climatic Conditions; Traffic Travel Time

Introduction

Quality of life varies from one country to another, depending on income, cost of living, quality of environment, education, health and culture of individuals [1]. Quality of life is the individual’s perception of his living situation in the context of the culture and society in which he lives. Quality of life is also enjoyment and a feeling of satisfaction and happiness, as a result of satisfying needs and compatibility with the surrounding environment [2]. Quality of life can be expressed by quantitative and qualitative indicators of living conditions and situations (economic, social, health, educational and cultural) and the interaction between these conditions and their reflections on the individual’s life [3]. Globally, Luxembourg ranked first in the Quality of Life Index of 207.3 in 2024, followed by the Netherlands, Iceland, Denmark, Finland, Oman, Switzerland, Norway, Austria, Estonia, Japan, Germany, Spain, Sweden, and the United States (Figure 1). These indicators are consistent with the results of the study [4], as rich countries with high social and economic development have the highest level of quality of life.

The study [5] showed that the quality of life is affected by several factors, including the quality of the environment, which requires greening social development, raising awareness among all segments of society, legal and economic tools, and planning processes in all economic sectors. If the country’s overall economic development is good, it ensures an increasing trend in the quality of life. This study also recommended the need to develop the Human Development Index, the Environmental Performance Index, and the Corruption Perception Index in countries. The Gulf Cooperation Council includes several countries (the Kingdom of Saudi Arabia, the United Arab Emirates, Oman, Qatar, Bahrain, and Kuwait). The State of Bahrain was excluded due to the lack of data on the Quality of Life Index. The Gulf Cooperation Council countries were interested in quality of life, as the study [6] showed that the Kingdom of Saudi Arabia launched a program to improve the quality of life and sustainable development, based on the following: (1) Effectiveness of the performance of services provided to citizens and residents, (2) The role of tourism in improving the quality of life, (3) Entertainment and cultural projects in the Kingdom. The Gulf Cooperation Council countries focused on social protection policies, as the study [7] analyzed social protection policies in the State of Kuwait during the period 1960-2019. This study showed that there were statistically significant differences between: (1) the issues of interest of social protection policies during their analysis stages, (2) the goals and values related to social protection policies, (3) the practical aspects of social protection policies and the results of their implementation and their impact on society, (4) the expected interactions of social protection policies and the forces influencing their development and implementation during their analysis stages. The Ministry of Community Development of the United Arab Emirates, [8], measured the quality of life in seven vital sectors by presenting a questionnaire to explore the opinions of members of the Emirati community. The survey results are summarized as follows: (1) About 93% of the population (citizens and residents) are proud to live in the UAE, (2) 82% of individuals expressed their satisfaction with government services, (3) 92% feel safe when walking alone at night, (4) 84% are reassured about their family relationships, (5) 88% have good communication skills, (6) 80% believe that they live a purposeful life and are optimistic about the future. Of course, the quality of life is reflected in the service or activity that the individual practices, as the study [9] focused on the quality of life and satisfaction with the integration between the profession and work life of Greek dentists before and during the Covid-19 pandemic. This study showed a clear decline in the quality of life and job satisfaction during the pandemic. Males were more likely to have a lower quality of life, dissatisfaction with the profession and the integration between work and life during the pandemic. Income is also an indicator of job satisfaction despite the pandemic. Working individuals through deep human relationships, high education, beliefs and values can provide a flexible shield against professional difficulties in periods of unexpected stressful events. The study [10] showed that the level of quality of government services in the Sultanate of Oman was average from the point of view of service providers, while it was low from the point of view of beneficiaries. There are many challenges facing the provision of government services in light of the Corona pandemic, the most important of which are: (1) Weak organization in some institutions for the mechanism of remote work in light of the pandemic, due to their weak readiness and lack of prior preparation to provide services electronically, (2) Weak Internet network, which made it difficult to complete transactions electronically.

The study [11] also showed that quality of life depends on the individual’s culture and ability to define his goals, expectations, standards and concerns. Quality of life affects the quality of service or work that the individual practices, especially the quality of life and well-being of academics in the fields of dentistry and nursing at the end of the third year of the Covid-19 pandemic. This study showed that improving the quality of life of faculty members is essential for developing health promotion activities in universities and can help enhance performance among employees and students. The study [12] evaluated the quality of residential life in Riyadh. This study showed that the quality of residential life is low in Al-Batha, Al-Sulay, Al-Malaz, Al-Ha’ir and Al-Aziziyah, while it was high in Al-Ulya and Al-Rawdah. This study also showed that achieving a high level of quality of residential life requires achieving spatial justice, diversifying economic activities and raising the efficiency of health and educational services.

The study [13] examined internal and external indicators that determine the quality of life. Internal indicators at the individual level include both individual characteristics and situational factors. External indicators include both socio-economic variables consisting of social, cultural, religious, political and economic factors. Considering social indicators, we can say that the achieved economic growth has contributed to the extension of life expectancy, however, a positive association occurs only to a certain level. Available data show that in many developed countries there is also an influence of personal relationships and participation in social life on the quality of life. The issue of social inequality requires taking action to avoid the aggravation and increase of conflicts, or cases related to mental disorders, crime, and other problems faced by younger generations.

The study [14] focused on the economic dimension of wellbeing and quality of life in Egypt. This study showed a decline in the quality of life index in Egypt during the period 2012-2015, attributed to the negative repercussions of the January 25, 2011 revolution, the terrorist operations that were confronted and eliminated, the return of the police force, and the imposition of security and stability in all governorates. [15] also studied the current and hoped-for status of quality of life according to Saudi Vision 2030. This study showed an increase in the quality of life index from 71.0 in 2012 to 169.4 in 2015, then decreased to 155.1 in 2024. The quality of life indicators in the Kingdom of Saudi Arabia were relatively stable during the period 2012- 2024, as the coefficient of variation in the values of the indicators ranged between a minimum of 5.9% for the safety index and a maximum of 33.4% for the climate index. It was also shown that a 10% increase in each of the percentage of spending on health, education, social protection, and the percentage of the labor force to the total population leads to an increase in the level of quality of life in the Kingdom of Saudi Arabia by a percentage of 4.58% and 5.17% for each, respectively. Finally, the level of quality of life is expected to increase from 155.1 in 2024 to 175.6 in 2030, i.e. an expected increase in the level of quality of life by a rate of 13.22% according to Saudi Vision 2030.

The study [16] was concerned with reviewing the literature and studies concerned with the quality of life of people with disabilities. This study showed a low level of quality of life for people with hearing disabilities. The level of quality of life for people with sensory disabilities is higher than that estimated for people with mental disabilities. People with motor disabilities enjoy a higher quality of life than people with sensory disabilities. This study recommended the need to improve the quality of life for people with disabilities, by joining associations for people with disabilities, the presence of social and family support, a good economic and social status, early intervention to diagnose disability, and providing families of children with disabilities with information and guidance. By monitoring the movement of the Quality of Life Index in the GCC countries, it became clear that the Kingdom of Saudi Arabia’s ranking dropped from first place in 2016 and 2017 to the penultimate place in the Quality of Life Index in 2024. The United Arab Emirates’ ranking also dropped from first place in 2018 and 2019 to third place in the Quality of Life Index in 2024. Although Qatar ranked third in the Quality of Life Index in 2017, it ranked second in 2024. As for Oman, it was able to maintain its first place in the Quality of Life Index during the period 2020-2024. By comparing the score and ranking of the GCC countries in the Quality of Life Index in 2024, it became clear that Oman ranked first, followed by Qatar, then the United Arab Emirates. As for Saudi Arabia, it ranked penultimate in the Quality of Life Index, followed by Kuwait (Figure 2).

Research objectives

This study aimed to conduct a comparative economic analysis of the quality of life in the Gulf Cooperation Council countries (Kingdom of Saudi Arabia, United Arab Emirates, Oman, Qatar, Kuwait) during the period 2016-2024, by studying the following:
i. The current status of the quality of life in the Gulf Cooperation Council countries.
ii. Testing the significance of the difference between the averages of the quality of life index for the Gulf Cooperation Council countries.
iii. Econometric analysis of the most important factors determining the quality of life index in the Gulf Cooperation Council countries.

Study Methodology

This study relied, in achieving its objectives, on data issued by international organizations and institutes interested in evaluating the quality of life at the global level. The level of quality of life in the Gulf Cooperation Council countries is determined based on the Quality of Life Index, which is based on several indicators, the most important of which are: Purchasing Power Index, Safety Index, Health Care Index, Cost of Living Index, Housing Cost to Income Ratio, Traffic Commute Time Index, Pollution Index, and Climate Index. To achieve the objectives of the study, the (t) test was used to identify the significance of the difference between the averages of the quality of life of the Gulf Cooperation Council countries during the period 2016-2024. The value of (t) was calculated using the following equation [17]:

This study also relied on statistical and econometric analysis to achieve its objectives in studying the factors determining the quality of life in the GCC countries during the period 2016-2024. This period was chosen due to the introduction of the climate index starting in 2016 as one of the indicators determining the quality of life. The model used could be expressed by the following equation:

Where: Y represents the country’s quality of life index, X₁ represents the purchasing power index, X₂ represents the safety index, X₃ represents the health care index, X₄ represents the cost of living index, X₅ represents the cost of housing to income, X₆ represents the traffic index, X₇ represents the environmental pollution index, X₈ represents the climate index, D represents the dummy variable, and takes the number (0, 1) and represents the Gulf Cooperation Council countries. A number cannot be determined for each country, except after conducting a (t) test to determine the significance of the difference between the quality of life averages. In the event that the difference between the quality of life averages of two countries is proven to be insignificant, they take the same number. As for e, it represents the random error.

The selected independent variables are related to quality of life, as it is one of the most important determinants of quality of life in the GCC countries. According to economic logic, increasing income, purchasing power, security, safety, and increased spending on health and education lead to improving quality of life. However, rising prices, increasing costs of living, and increasing rents for residential units lead to a decrease in the quality of life. It is known that increasing population, especially in major cities, leads to more congestion on streets and main roads. This leads to taking more time to go to and from work and other places. Finally, increasing carbon dioxide emissions, due to increased traffic density and the expansion of factories and companies, leads to environmental pollution and impacts on the climate, and thus affects the quality of life in the GCC countries.

Due to the small vocabulary of each country during the study period, the vocabulary of the Gulf Cooperation Council countries was collected, amounting to 36 items, including nine items for each of the Kingdom of Saudi Arabia and the United Arab Emirates, eight items for the State of Qatar, and five items for each of Oman and Kuwait. The proposed model was estimated using the ordinary least squares method [17].

Results and Discussion

The current status of quality of life in the GCC countries:

By studying the current status of quality of life in the GCC countries during the period 2016-2024, the data in (Table 1) shows the following:
i. The quality of life index in Saudi Arabia decreased from 159.2 in 2016 to 146.4 in 2017, then increased to 155.1 in 2024, with an annual average of 151.37 during the study period. The quality of life index in the United Arab Emirates increased from 144.1 in 2016 to 163.2 in 2024, with an annual average of 158.52 during the study period. The quality of life index in the State of Qatar increased from 132.4 in 2017 to 165.9 in 2024, with an annual average of 158.08 during the study period. Oman’s Quality of Life Index increased from 167.1 in 2020 to 187.0 in 2024, with an average of 176.92 during the period 2020-2024. Kuwait’s Quality of Life Index also increased from 115.8 in 2020 to 140.1 in 2024, with an annual average of 122.44 during the period 2020- 2024.
ii. The State of Oman ranked first in the Quality of Life Index during the last five years, and this is attributed to the small number of security threats, violence and crime, and the promotion of a culture of coexistence and the application of the law, with the improvement of human development indicators and social progress, in addition to the low inflation rates and thus the increase in purchasing power, the fight against corruption, the reduction of unemployment rates and the continued growth of the Omani economy, especially in the non-oil productive sectors. As for the State of Kuwait, it ranked last in the Quality of Life Index, and this is attributed to the spread of many diseases. According to statistics from the Kuwaiti Ministry of Health and the World Health Organization, 79% of deaths in the State of Kuwait are due to chronic diseases, the most important of which are: cardiovascular diseases, cancer, diabetes and respiratory diseases. The percentage of the population suffering from overweight and obesity reached 77%, which requires rapid intervention to improve the health situation and educate citizens to follow healthy habits [18].
iii. The GCC Quality of Life Index was relatively stable, with the coefficient of variation of the Quality of Life Index ranging from a minimum of 2.61% for Saudi Arabia to a maximum of 8.76% for Kuwait. The relative stability of the quality of life in the GCC countries is attributed to the high average real per capita income, the huge investments made in infrastructure, and the increase in government spending on health, education, culture, and entertainment.

Testing the significance of the difference between the averages of the Quality of Life Index for the Gulf Cooperation Council countries.

By studying the significance of the difference between the averages of the Quality of Life Index for the Gulf Cooperation Council countries during the period 2016-2024, the data in (Tables 2, 3) show the following:
i. The average quality of life index in the GCC countries during the study period ranged from a minimum of 122.44 for Kuwait to a maximum of 176.92 for Oman. The difference between the average quality of life index for Oman, UAE, Qatar and its estimated counterpart for Kuwait ranged from a minimum of 28.93 for Saudi Arabia to a maximum of 54.48 for Oman.
ii. The average quality of life index for Oman is 144.5, which means that the average quality of life index for Oman is 44.5% higher than that for Kuwait, while the average quality of life index for the UAE, Qatar, and Saudi Arabia is 29.5%, 29.1%, and 23.6% higher than that for Kuwait, respectively.
iii. By studying the significance of the difference between the averages of the Quality of Life Index in the Kingdom of Saudi Arabia and each of the two countries of Oman and Kuwait, it was found that the calculated value of (t) is greater than its tabular counterpart at the probability level of 1%, which confirms the significance of the difference between the averages of the Quality of Life Index in the Kingdom of Saudi Arabia and each of the two countries of Oman and Kuwait. It also showed the significance of the difference between the averages of the Quality of Life Index in Oman and each of the United Arab Emirates, Qatar, and Kuwait at the probability level of 1%. It also showed the significance of the difference between the averages of the Quality of Life Index in the State of Kuwait and each of the two countries of the United Arab Emirates and Qatar at the probability level of 1%.
iv. The calculated (t) value was significantly lower than its tabular counterpart for the difference between the averages of quality of life for the United Arab Emirates and Qatar, which confirms the insignificance of the difference between the averages of quality of life for the United Arab Emirates and Qatar at the 1% probability level. It also showed that the difference between the averages of quality of life for the Kingdom of Saudi Arabia and Qatar was insignificant at the 1% probability level.

Source:Data in Table 1.

Source:Data in Table 2.

Econometric Analysis of the Most Important Determinants of the Quality of Life Index in the GCC Countries:

To conduct the econometric analysis of the most important determinants of the Quality of Life Index in the GCC countries during the period 2016-2024, it was necessary to determine the values of the dummy variable. In light of the results of the (t) test for the significance of the difference between the quality of life averages, it was found that the difference between the quality of life averages for each of the following countries was not significant: The United Arab Emirates and Qatar, the Kingdom of Saudi Arabia and Qatar, and the Kingdom of Saudi Arabia and the United Arab Emirates at the probability level of 1%. In light of the statistical analysis, the State of Kuwait takes the number (0). The number (1) is allocated to each of the Kingdom of Saudi Arabia, the United Arab Emirates, and Qatar. Finally, the State of Oman takes the number (2). The dummy variable was used to measure the amount of change in both the constant and the slope of the regression coefficient in the estimated model [17].

By conducting a stepwise multiple regression analysis of the factors determining the quality of life index in the GCC countries during the period 2016-2024, the following model was obtained: (Table 4)

**Significant at the 1% level.

The estimated model shows that the most important determinants of quality of life in the GCC countries are purchasing power, safety, traffic travel time, and climate index. It was found that a 10% increase in each of purchasing power, safety, and climate leads to an increase in the quality of life index in the GCC countries by rates of 3.52%, 3.73%, and 10.1%, respectively. It was also found that a 10% increase in traffic travel time leads to a decrease in the quality of life index in the GCC countries by 2.49%. The independent variables included in the estimated model explain 97% of the changes that occurred in the GCC quality of life index, while the remaining changes, estimated at about 3%, are attributed to other factors not included in the model. The value of (F) for the Breusch-GodFrey serial correlation LM test reached 0.67, which is statistically insignificant at the 1% significance level, indicating that the estimated model is free from the problem of autocorrelation of the residuals. The estimated model also does not have autocorrelation in the variance of the series, according to the Arch test, as the value of (F) reached 0.02, which is statistically insignificant at the 1% probability level. The estimated model is efficient, as the square root of the mean squared error reached 0.021, the mean absolute error reached 0.017, and the mean absolute error ratio reached 0.335, and the Theil’s non-inequality coefficient approached zero (0.002).

Conclusion

Despite the inclusion of the Gulf Cooperation Council (GCC) among the high-income countries, there is a clear disparity in the quality of life index, as the average quality of life index for Oman, the United Arab Emirates, and Qatar exceeds that estimated for the State of Kuwait by percentages of 44.5%, 29.5%, 29.1%, and 23.6%, respectively. There are significant differences between the average quality of life index for the State of Oman and the rest of the other countries (the Kingdom of Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait). There were also significant differences between the average quality of life index for the State of Kuwait and the rest of the GCC countries. The State of Oman ranked first in the quality of life index, followed by Qatar, the United Arab Emirates, the Kingdom of Saudi Arabia, and Kuwait in 2024. Through standard economic analysis, it was found that the most important factors determining the quality of life in the GCC countries are purchasing power, safety, traffic travel time, and climate conditions. A 10% increase in each of purchasing power, safety, and climate leads to an increase in the quality of life index by rates of 3.52%, 3.73%, and 10.1%, respectively, while a 10% increase in traffic travel time leads to a decrease in the quality of life index by 2.49%.

Of course, purchasing power can be increased by controlling inflation rates and rising prices, continuing the flow of goods to markets, combating monopolies, and protecting consumers from commercial fraud. As for safety and climatic conditions, they can be improved through strict application of laws and legislation, preserving the environment and protecting it from pollution, in addition to completing the Green Middle East Initiative. As for traffic travel time, especially during congestion, this is a problem that most countries in the world suffer from, especially in major cities. It can be reduced by organizing work and exit times for all employees in public and private sector institutions and searching for alternative routes and taking them into account when planning urban planning. Finally, this study recommends the need to improve the quality of life index for the Kingdom of Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait, similar to the State of Oman, which ranked sixth in the world in the quality of life index in 2024, by increasing purchasing power, safety, and climatic conditions on the one hand, and reducing traffic travel time, especially in major cities, on the other hand.

Acknowledgment

The authors extend their sincere appreciation to the Deanship of Scientific Research at King Saud University for supporting the work.

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