Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE has claimed the top spot for economic performance as it cemented its place among the world's five most competitive economies, according to the latest IMD global ranking unveiled in Zurich on Thursday.
Scoring 94.1 in the 2026 IMD World Competitiveness Ranking, the country placed fifth overall - behind Singapore, Hong Kong, Switzerland and Taiwan, and ahead of Denmark, Ireland, the Netherlands, the US, and Sweden.
The annual index measures more than 200 indicators drawn from official statistics and executive surveys across four pillars: economic performance, government efficiency, business efficiency, and infrastructure. While the UAE stood at the top on economic performance, Switzerland placed first in government efficiency and infrastructure and Singapore led on business efficiency.
Institutional Strength Emerges as Decisive Factor
Presenting the results, Arturo Bris, Director of the IMD World Competitiveness Centre, said the defining factor separating leading economies was no longer geography, size, or cost, but institutional credibility and rule of law.
"The key differentiator between successful and unsuccessful economies is not the difference between developed versus developing economies, East versus West, or open versus closed economies," Bris said at a media conference on Wednesday. "It is fundamentally the difference between countries that uphold the rule of law and satisfy international standards for the protection of rights and regulation."
He added that all five top-ranked economies were relatively small, noting that scale no longer guarantees competitiveness.
Two Decades of Reform Behind UAE Success
The UAE's global ranking reflected sustained reform rather than a single-year effort, according to Hanan Mansour Ahli, Managing Director of the Competitiveness Sector at the Federal Competitiveness and Statistics Authority (FCSA).
"It reflects a long-term national model built on agile government, economic fairness, trusted institutions, world-class infrastructure, digital readiness, talent attraction, and a clear commitment to diversification and future readiness," she said.
The UAE has risen from 28th place globally two decades ago. Ahli highlighted economic diversification as a key driver, noting that non-oil activities now account for nearly 80% of the economy.
"When people look at competitiveness rankings, they often focus on the outcome. In the UAE, we focus on the system that produces those outcomes," she said. "For us, competitiveness is not managed once a year. It is managed continuously."
Gulf Region Shows Broad Gains
The UAE was the highest ranked country in the Middle East region, where nearly every economy held steady or improved.
Qatar ranked 11th globally (down two places), followed by Saudi Arabia in 13th (up four), Bahrain in 20th (up two), Oman in 25th (up three), Kuwait in 31st (up five), Jordan in 46th (up one), and Türkiye in 57th (up nine).
Bris said several Gulf states, including the UAE, Saudi Arabia, and Oman, had embedded competitiveness targets into national development strategies, a practice reflected in the region's performance.
Ahli said future competitiveness would increasingly depend on talent, innovation, data and artificial intelligence.
"Countries that can combine long-term vision with agility, openness with resilience, and technology with effective institutions will be best positioned to succeed," she said.
