Gulf Economies Climb IMD’s 2026 Competitiveness Ranking: UAE in the World’s Top Five, With Qatar, Saudi Arabia and Bahrain in the Top 20
Gulf economies strengthened their standing among the world’s most competitive in the 2026 IMD World Competitiveness Ranking, with the United Arab Emirates holding a place in the global top five and four Arab economies — the UAE, Qatar, Saudi Arabia and Bahrain — ranking inside the top 20 of the 70 economies assessed. The results underline how far the region’s leading reformers have climbed the global table, even as the wider Middle East navigates a conflict-driven energy shock.
Produced annually by the IMD World Competitiveness Center in Lausanne, the ranking is one of the most widely watched global benchmarks of national competitiveness. It assesses how economies create and sustain the conditions for enterprises to compete, drawing on hard statistics and an executive survey across four broad factors: economic performance, government efficiency, business efficiency and infrastructure.
The Regional Scoreboard
The United Arab Emirates again led the Arab world, holding fifth place globally and ranking as the most competitive economy in the Arab world and the wider MENA region for the tenth consecutive year. Qatar followed at 11th, Saudi Arabia at 13th and Bahrain at 20th — placing four Arab economies in the global top 20. Further down the table, Oman climbed three places to 25th and Kuwait five places to 31st, while Jordan came in at 46th.
The breadth of the regional showing is notable: of the 70 economies IMD covers, seven are Arab states, and most of them improved their position this year. Egypt, Lebanon, Morocco and most other Arab economies are not among the 70 economies the ranking assesses, so they carry no 2026 position.
UAE: First in the World for Economic Performance
The UAE retained fifth place globally and, according to the results, ranked first in the world for economic performance. The Emirates topped the world in a long list of individual indicators — including the absence of bureaucracy, the adaptability of government policy, employment, international experience and the quality of air transport — reflecting years of investment in a business-friendly environment and world-class infrastructure. Its standing as the most competitive economy in the Arab world and MENA for a tenth straight year cements its position as the region’s benchmark.
Saudi Arabia: A Standout Top-20 Mover
Saudi Arabia was a standout mover among the large Gulf economies, advancing four places to 13th globally and placing third among G20 economies, behind only the United States (10th) and China (12th). The improvement spanned all four factors: economic performance and government efficiency each rose from 17th to 12th, business efficiency climbed from 12th to 9th, and infrastructure advanced from 31st to 28th. The Kingdom ranked among the top three globally in 17 criteria and first in the world in commercial-services export growth, terms of trade, banking and financial services, cybersecurity, and internet users per thousand of population — a competitiveness profile in which services, finance and digital infrastructure are becoming more visible alongside the Kingdom’s traditional energy base.
Qatar and Bahrain Remain in the Global Top 20
Qatar remained among the world’s most competitive economies at 11th, the second-highest Arab economy after the UAE, though it slipped two places from a year earlier — a reminder that competitiveness rankings can move in both directions. Bahrain, meanwhile, rose two places to 20th, leveraging its established financial sector and a push into digital services to secure a place in the global top 20. Oman (25th, up three) and Kuwait (31st, up five) extended the regional pattern of broad improvement, even if they sit outside the top 20.
The Global Picture
At the top of the 2026 ranking, Singapore reclaimed first place ahead of Hong Kong and Switzerland — last year’s leader, which slipped to third — while Taiwan rose to a record fourth. The UAE held fifth, the only Arab economy in the global top 10. Denmark, Ireland, the Netherlands, Sweden and the United States completed the top 10, with China 12th — just ahead of Saudi Arabia. The presence of two Gulf economies in or near the top dozen, and four in the top 20, places the region among the strongest performers outside the established advanced economies.
Why It Matters
Competitiveness rankings are closely tracked by international investors, multinationals and policymakers as a shorthand for where economies are headed. The Gulf’s strong showing near the top of the table strengthens the region’s competitiveness profile for international investors at a moment when the wider Middle East faces an uncertain backdrop, with conflict-driven energy disruption clouding near-term growth. The results fit a broader regional and global story: a number of Gulf economies have been steadily climbing competitiveness and business-environment benchmarks as they diversify, deepen their financial sectors and invest in digital infrastructure. Crucially, the improvements span institutional and business-environment measures — not just headline output — suggesting the reforms are increasingly being captured in the data global investors watch.
Outlook
Sustaining the gains will depend on whether the improvements in efficiency and infrastructure continue to translate into stronger private-sector activity and non-oil growth, particularly as the region absorbs the effects of energy-market volatility. Competitiveness benchmarks are revised every year, and holding these positions will require continued progress on the institutional, financial and digital fronts that drove this year’s advance. For now, the 2026 ranking offers a striking snapshot: a cluster of Gulf economies registering among the world’s most competitive, even against a turbulent regional backdrop.
Sources: IMD World Competitiveness Center (2026 World Competitiveness Ranking); Saudi Press Agency; UAE Government (u.ae).
