The Swiss-based International Institute for Management Development (IMD) has published the results of the prestigious World Competitiveness Yearbook 2026. The United Arab Emirates retained its fifth-place ranking in the global assessment, reaffirming its status as one of the world’s most advanced economies while extending its lead within the Middle East region. Most neighbouring Gulf countries also improved their positions, with Saudi Arabia rising to 13th place, Bahrain to 20th, Oman to 25th, and Kuwait to 31st. Qatar was the only country in the region to record a slight decline, ranking 11th overall.
The IMD ranking evaluates 70 economies and measures how effectively countries manage their resources and policies to achieve long-term prosperity. This year’s results are based on a combination of hard economic indicators, such as GDP growth and inflation, and executive surveys assessing real-world business conditions, including bureaucracy levels and the reliability of legal systems. Singapore, Hong Kong, Switzerland, and Taiwan topped this year’s ranking, followed closely by the UAE. In the IMD methodology, competitiveness extends far beyond economic output, encompassing political, social, and cultural factors, overall quality of life, and institutional strength in an increasingly fragmented geopolitical environment.
The UAE’s exceptional standing is reflected in its first-place global ranking across 21 indicators, including low bureaucracy, government adaptability, high employment levels, and the quality of air transport infrastructure. Overall, the IMD evaluates more than 300 detailed criteria. The fact that the UAE ranks among the top five in 67 indicators and among the top ten in 118 categories demonstrates the remarkable balance of its economic and institutional framework. Rather than excelling in a single area, the country consistently delivers world-class performance across infrastructure, digital security, legislation, and the overall business environment.
Government officials and analysts alike emphasize that the UAE’s economic stability is no longer dependent on a single sector. Thanks to long-term investments in emerging industries, the non-oil economy now accounts for nearly 80% of national GDP. This trend aligns closely with strategic developments we have previously covered on our blog. One notable example is the UAE’s departure from the OPEC oil cartel, allowing the country greater flexibility in shaping its own economic identity and future growth strategy.
Today, the UAE’s competitiveness is driven primarily by technological innovation and infrastructure development. The country ranks second globally in public trust in artificial intelligence (AI), new business creation, and urban management efficiency. It also holds third place worldwide in nation branding, AI accessibility, and tourism revenues.
The IMD report also highlights the country’s robust macroeconomic performance. In 2025, the UAE recorded GDP growth of 6.2%, while inflation remained at a low 1.28% and unemployment stood at just 1.75%. The country also achieved a strong current account surplus equivalent to 14.27% of GDP, while foreign direct investment inflows reached 7.9% of GDP.
For international businesses and investors establishing companies or allocating capital to real estate in the UAE, these results provide further confirmation of a stable and predictable business environment. Effective governance and a clearly defined economic development strategy continue to position the United Arab Emirates as one of the most progressive destinations for international business and investment.
