The UAE ranked first globally in economic performance and fifth overall in the 2026 IMD World Competitiveness Ranking.
The UAE has retained its position as the world’s fifth most competitive economy in the 2026 IMD World Competitiveness Ranking. The yearbook, published by the World Competitiveness Center at the International Institute for Management Development in Lausanne, also placed the UAE first globally in economic performance.
Gulf News reported that the ranking keeps the UAE as the most competitive economy in the Arab world and the wider MENA region for the tenth consecutive year. The country placed among the top 10 globally in 118 indicators and within the top five in 67 of them.
The 2026 edition assessed 70 economies. It is built around four main pillars: economic performance, government efficiency, business efficiency, and infrastructure, spanning hundreds of individual criteria. The center combines statistical data with surveys of senior business executives to measure how effectively countries use their resources to support long-term growth.
The results were released ahead of the IMD World Competitiveness Summit in Zurich. Khaleej Times reported that representatives of the top five economies, Singapore, Hong Kong, Switzerland, Taiwan, and the UAE, gathered there to discuss the future of global competitiveness. Singapore took first place, followed by Hong Kong, Switzerland, and Taiwan.
UAE Competitiveness Ranking Leads on Bureaucracy and AI Trust
The UAE ranked first globally across 21 separate indicators. Trade Arabia reported that these included the absence of bureaucracy, adaptability of government policy, employment, international experience, national culture, value systems, and quality of air transport.
The country also placed second globally in citizen trust in artificial intelligence, the creation of new firms, female representation in parliament, and the management of cities. It ranked third in international image and branding, society’s access to AI, tourism receipts, exports of goods, and energy infrastructure. In government efficiency, corporate investment in AI, and the legal and regulatory framework, the UAE placed fourth.
Among Gulf economies, the UAE sat well ahead of its neighbors. Qatar ranked 11th globally, Saudi Arabia 13th, and Bahrain 20th. Other economies in the global top 10 included Denmark, Ireland, the Netherlands, Sweden, and the United States.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, announced the results on X. He said the ranking reflects the country’s development under the leadership of President Sheikh Mohamed bin Zayed Al Nahyan, and credited efficient institutions and the work of teams across various sectors. He described competitiveness as an ongoing effort rather than a short-term goal.
UAE Competitiveness Ranking Built on Non-Oil Growth
The standing reflects a longer climb. Hanan Mansoori, Managing Director of the Federal Competitiveness and Statistics Centre, said the UAE has risen from 28th place globally two decades ago to its current position among the world’s top five. She attributed the result to a national model based on institutional agility, economic openness, trusted governance, digital readiness, and investment in future sectors.
Mansoori pointed to diversification as a central factor, noting that nearly 80 percent of the UAE economy is now generated by non-oil activities. She also cited artificial intelligence as a driver of competitiveness, arguing that AI is changing the relationship between population size and economic output by allowing countries to scale productivity without proportionate population growth.
The economic figures behind the ranking show continued expansion. The Federal Competitiveness and Statistics Centre reported that UAE GDP grew 6.2 percent in 2025 to reach AED 1.9 trillion, with non-oil GDP rising 6.8 percent to AED 1.5 trillion.
Arturo Bris, Director of the IMD World Competitiveness Center, said this year’s results show that competitiveness is increasingly defined by institutional credibility rather than size, cost, or geography. He said economies with strong institutions, predictable regulations, and trusted governance are proving more resilient amid geopolitical fragmentation and uncertainty.
