UAE joins top five most competitive economies

By Courtney Rivera 19/06/2026 3 min read 19 views

The United Arab Emirates has entered the top five most competitive nations globally, reaching fifth place in the IMD World Competitiveness Yearbook 2026. It also achieved first place worldwide for economic performance.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, linked the success to the nation’s long-term vision and institutional strength. “Under the leadership of Sheikh Mohamed bin Zayed, the UAE continues to affirm its place among the world’s most competitive nations. The IMD World Competitiveness Yearbook 2026 ranks us 5th globally, 1st in Economic Performance, 1st across 21 indicators, including Bureaucracy, Adaptability of Government Policy and in the top 5 globally across 67 indicators,” he stated. “These results are the product of a national vision, capable institutions and teams across every sector who perform and deliver. Competitiveness for us is not a ranking to chase; it is a standard we set for ourselves every day. It is what raises the quality of life for our people, earns the confidence of the world, and confirms that the UAE is moving steadil”

The UAE’s performance was measured across 342 criteria, divided into four main pillars: economic performance, government efficiency, business efficiency, and infrastructure.

The country ranked first in 21 indicators and placed among the top five in 67. Its adaptability in government policy, labor market efficiency, and digital infrastructure stood out as strengths.

The rankings highlight the UAE’s investments in technology, education, and workforce development. Its labor markets, innovation ecosystem, and digital transformation efforts contributed to its edge. It also placed third globally in infrastructure quality and fourth in government efficiency.

The IMD World Competitiveness Yearbook has been published annually since 1989. Its methodology combines hard data, such as GDP growth and employment rates, with qualitative assessments from business leaders. This year’s edition included executive surveys on corruption perception and ease of doing business.

Authors of the report warned against complacency. “Competitiveness is not a static achievement,” the IMD stated. “It demands continuous investment in human capital, infrastructure, and institutional trust.” For the UAE, this means maintaining reform momentum while aligning policies with technological and demographic changes.

The country’s top ranking in economic performance is especially notable amid a global slowdown in trade and investment. While other nations face inflation and supply chain disruptions, the UAE has diversified its economy beyond oil. Non-oil sectors now make up over 70% of its GDP, reducing vulnerability to commodity price swings.

This shift has positioned the UAE as a hub for startups and multinational corporations. Dubai alone registers over 40,000 new businesses yearly, many in fintech and logistics. The government’s push for a green economy, including a net-zero emissions target by 2050, has strengthened its reputation as a forward-looking market.

Challenges persist. The UAE’s dependence on expatriate labor has sparked discussions about long-term workforce sustainability. Some argue that while the country excels at attracting talent, it must focus more on developing local skills. Others highlight the need for further reforms in intellectual property rights and judicial transparency.

The UAE’s fifth-place finish in the IMD rankings marks its highest position ever. Its first-place showing in economic performance represents a major achievement.