Rangers are currently bottom of the Premier League after a 1-0 loss against Stoke City on Saturday left them without a win in 11 games but the 23-year-old has impressed with his dribbling and shooting ability so far this season.
And, while Arsene Wenger is reportedly interested in bringing the talented youngster to the Emirates Stadium, Hughes is adamant that Taarabt is happy where he is - and can become an even better player.
"It wouldn't surprise me if clubs were looking at [Taarabt] but I know for a fact that he is very happy here and he sees his future here," he told reporters.
|11/8||QPR are 11/8 with William Hill to be relegated from the Premier League
Hughes believes that the midfielder has worked harder to become a team player, which was a criticism during QPR's first season back in the top flight in 2011-12 when Taarabt was not a regular fixture in the starting XI.
"He is working exceptionally hard for the team, which in the past has been a criticism of him," the Welshman argued.
"That's not the case now. He is in a really good place now in terms of his attitude to his work and what he is able to produce on the pitch. We are really pleased with what he is showing on the pitch."
And Hughes suggested that he has not worked with many more talented players than Taarabt - although he can keep on improving to become an even better footballer.
"He's an outstanding player. In terms of ability alone he is arguably one of the best players I have played or worked with," he added.
"Obviously that is not the whole package. There are still parts of his game that he has to work on and he understands that."