MONTGOMERY, Alabama — Governor Kay Ivey announced today that Alabama has been ranked among the nation’s top 10 states for doing business by “Area Development” magazine, reflecting the state’s strong economic fundamentals and business-friendly environment.
In the publication’s 2025 Top States for Doing Business report, Alabama ranked No. 8 overall, scoring especially high in categories that are crucial to attracting investment and fueling job growth.
The state earned the magazine’s top ranking for Favorable Property Tax and placed in the top 10 in eight additional categories, including Overall Cost of Doing Business (No. 3).
“Alabama’s high ranking in this respected national survey confirms what we already know: Our state is open for business and built for success,” Governor Ivey said.
“By keeping taxes low, cutting red tape and investing in our people and infrastructure, we’ve created an environment where companies can thrive and communities can grow,” she added.
The annual “Area Development” survey evaluates how well states perform across key economic development factors such as tax structure, incentives, workforce readiness, and site availability.
Alabama ranked:
- No. 1 — Favorable Property Tax
- No. 3 — Overall Cost of Doing Business
- No. 3 — Favorable Regulatory Framework
- No. 4 — Business Incentives Programs
- No. 6 — Cooperative Local and State Government
- No. 6 — Site Readiness Programs
- No. 7 — Workforce Training Programs
- No. 7 — Availability of Sites
- No. 9 — Energy Cost
“This recognition reflects Alabama’s ongoing commitment to fostering a pro-growth, pro-business climate,” said Ellen McNair, Secretary of the Alabama Department of Commerce.
“From our competitive incentives to our nationally respected workforce training programs, Alabama continues to prove that we’re not just participating in the race for economic growth — we’re leading it,” she added.
Building momentum
The strong rankings come as Alabama continues to attract major growth projects in key industries including automotive, aerospace, chemicals and advanced manufacturing.
“This is a proud moment for Alabama and a signal to the world that we’re ready for what’s next,” Governor Ivey added. “Whether you’re a global manufacturer or a high-tech startup, Alabama has the people, the programs and the partnerships to help your business grow.”
Alabama has placed in Top 10 of the publication’s annual ranking of state business-friendliness for over a decade, consistently joining its Southern neighbors at the top of the pack. The state also ranked No. 8 in the 2024 report.
The magazine’s latest rankings reflect how Alabama’s economic development strategies are succeeding amid shifting corporate priorities — where speed, workforce readiness and infrastructure are more critical than ever.
“This year’s rankings reflect a rapidly evolving economic development landscape — one shaped by pressure on timelines, power infrastructure and workforce pipelines,” the report states. “The consultant panel behind the survey made clear that states no longer rise to the top simply by offering low taxes or generous incentives.
“Today, it’s about execution: how quickly and reliably a state can align land, labor, logistics and leadership behind a fast-moving project.”
The 2025 rankings come as Alabama builds momentum with a series of major economic development wins. In September alone, high-impact growth projects announced across the state are expected to generate nearly $2 billion in new capital investment.
