ALBAWABA – Do you wonder about the richest countries in the world? Well, surprisingly, many of those richest countries in the world are also among the world’s smallest.
Many small countries, such as San Marino, Luxembourg, Switzerland and Singapore, benefit from well-developed financial sectors and tax systems that attract foreign investment, professional talent, and large bank deposits.
Other countries, such as Qatar and the United Arab Emirates, have large reserves of hydrocarbons or other lucrative natural resources.
Richest countries in the world according to Global Finance
Here are the 10 richest countries in the world, whose residents enjoy high salaries due to the huge volume of investments in them and high overall GDP.
10 San Marino
San Marino is the oldest republic in Europe and the fifth smallest country on the map. It is also the one of the richest countries in the world.
San Marino may only have 34,000 citizens, but they are among the wealthiest in the world.
Notably, it helps that income tax rates are so low, about a third of the EU average. However, San Marino is working to align its financial laws and regulations with those of the European Union and state standards.
The small country showed remarkable resilience during the pandemic and in the recent tightening monetary conditions and energy crisis. Its tourism industry and manufacturing sector in particular turning are both going strong.
9 USA
The United States of America (USA) entered the richest countries in the world list for the first time in 2020, when it jumped to ninth place all of a sudden. But the country has been building its wealth for the past 20 years.
The reason America is in the top 10 is due to low energy prices and government spending driven by the pandemic. Fortunately, the US labor market has seen a recovery since the beginning of the pandemic. Even though the inflation rate is the highest in 40 years, which has hurt workers' wages.
8 Norway
Since the discovery of large offshore reserves in the late 1960s, the engine of Norway's economy has been fueled by oil. As Western Europe's largest oil producer, the country has for decades benefited from high prices.
But prices collapsed at the start of 2020, and then the global pandemic followed – and the krone fell. In the second quarter of that year, Norway's GDP fell by 6.3 percent, the largest decline in perhaps half a century since World War II.
Does this mean that Norwegians are much less wealthy than they were before the pandemic? Of course not. After the initial shock, the economy gradually pared losses and closed the year at -1.2 percent GDP growth. Then in 2021, the economy rebounded, growing overall by about 3.9 percent, and about 3.3 percent in 2022.
Meanwhile, Norwegians can always count on their $1.3 trillion sovereign wealth fund, the largest in the world. But unlike many other rich countries, Norway's GDP per capita numbers are a reasonably accurate reflection of the people’s economic well-being on average per capita, with one of the smallest the world's small income inequality gaps.
7. Switzerland
This country of about 8.7 million people owes much of its wealth to banking, insurance, tourism, and the export of pharmaceutical products, and other exports. Including precious stones and precious metals, precision instruments, and machinery (medical devices and computers).
Switzerland ranks high in the list of the richest countries in the world, with an average per capita wealth of $700,000. Moreover, one in every six adults has assets worth more than $1 million.
8. United Arab Emirates
Agriculture, fishing and the pearl trade are the former economic mainstays of this young state. But in the 1950s oil was discovered in the United Arab Emirates (UAE) and everything changed.
Today, the population of the UAE enjoys great wealth. Traditional Islamic architecture mixes with attractive shopping malls, and people coming from around the world. Workers come from all over the world to take advantage of tax-free salaries and year-round sunshine. Only about 20 percent of the people who live in the country are actually born there.
The UAE economy is also one of the most diversified global economies. Tourism, construction, trade and finance are major industries that bring the country billions in profits and investments.
5 Macau
Also known as the Las Vegas of Asia, it was formerly a colony of the Portuguese Empire and was released in 2001.
Since that time, the Special Administrative Region of the People's Republic of China has experienced great economic growth at an accelerating pace.
4 Qatar
Qatar still holds a high position in the list of the richest countries in the world this year.
In 2014, the per capita GDP of the Qatari citizen was more than $143,222. Though it dropped significantly a year later, and remained below $100,000 for the next five years, it is now growing by $10,000 per year per capital.
However, Qatar's reserves of oil, gas and petrochemicals are so large and its population so small – just 3 million – that this marvel of modern architecture, luxury shopping malls and fine dining has managed to stay at the top-most ranks of the richest countries in the world list for 20 years.
3 Singapore
Singapore is a financial haven for many investors due to its capital gains and tax-free profits.
But how did Singapore attract so many high-net-worth individuals?
When the city-state gained its independence in 1965, half of its population was illiterate.
With almost no natural resources, Singapore has succeeded in strengthening itself through hard work and smart politics, becoming one of the most business-friendly places in the world.
Today, Singapore is a thriving commercial, manufacturing, and financial hub, and 98 percent of the adult population is now educated.
2 Luxembourg
You can visit Luxembourg for its castles, beautiful countryside, cultural festivals or gastronomy. This nation of 650,000 people has a lot to offer, for both tourists and locals.
Luxembourg uses a large share of its wealth to provide better housing, healthcare and education for its people, who enjoy by far the highest standard of living in the eurozone.
1 Ireland
A country of just 5 million people, the Republic of Ireland was one of the regions hit the hardest by the 2008 financial crisis. After enacting politically-challenging reforms such as deep cuts in public sector wages and restructuring of the banking industry, the island nation has restored its financial health, boosted employment rates and experienced Significant growth in per capita GDP.
Ireland is also one of the world's largest corporate tax havens, which benefits multinational corporations far more than the average Irish individual.
