UAE retains top-five global competitiveness ranking

• UAE also ranked first in 21 indicators
• Four Gulf peers improve standings
• Qatar down two places from 2025

The UAE ranked fifth globally in the IMD World Competitiveness Yearbook 2026, retaining its position among the world’s most competitive economies and extending its lead in the Middle East.

Other Gulf states also improved their standings. Saudi Arabia rose four to 13th, Bahrain climbed two to 20th, Oman advanced three places to 25th and Kuwait gained five to rank 31st.

Qatar fell two places to 11th.

The ranking, published by the Switzerland-based International Institute for Management Development (IMD), measures how effectively countries manage resources and policies to support long-term economic prosperity.

The 2026 yearbook covers 70 economies and assesses performance across the economy, government efficiency, business efficiency and infrastructure, using a combination of statistical data and surveys of business executives.

UAE economy at a glance

The UAE ranked first globally in 21 indicators including bureaucracy, adaptability of government policy, employment, international experience and quality of air transportation.

It placed in the top five for 67 indicators and ranked in the top 10 for 118 measures.

Sheikh Mohammed bin Rashid Al Maktoum, vice president of the UAE and ruler of Dubai, said the results reflected the country’s long-term approach to economic development and institutional reform.

The report pointed to strong economic fundamentals, with the UAE recording GDP growth of 6.2 percent in 2025, inflation of 1.28 percent and unemployment of 1.75 percent.

The country also posted a current account surplus equivalent to 14.27 percent of GDP, while inward foreign direct investment reached 7.9 percent of GDP.

UAE indicators April 2026

The UAE ranked second globally for citizen trust in artificial intelligence, company creation, female representation in parliament and city management.

It was third for international branding, access to AI, tourism receipts, exports of goods and energy infrastructure, and fourth for government efficiency, corporate investment in AI and its legal and regulatory framework.

The report said the country’s competitiveness is increasingly underpinned by economic diversification. Hanan Mansour Ahli, managing director of the UAE’s Federal Competitiveness and Statistics Centre, said the non-oil economy now accounts for almost 80 percent of GDP after decades of investment in new industries and growth sectors.

“Our competitiveness is not dependent on one sector or one market,” she said.

IMD World Competitiveness Centre director Arturo Bris said the latest rankings showed competitiveness was becoming less dependent on size or geography and more closely linked to institutional strength.

“Economies with strong institutions, predictable regulations and trusted governance are proving more resilient in an era of geopolitical fragmentation and uncertainty,” he said.

• ‘War opened doors for us’, says Dubai trade chief
• Dubai raises anti-laundering bar for crypto businesses
• UAE hiring slows but demand for skilled workers remains strong