The United Arab Emirates has been even more highly integrated into one of the world's leading economies as it ranks fifth in the IMD World Competitiveness Yearbook 2026 for economic performance worldwide (which is a testament to the country’s continuous development strategy and business friendly policies).
The recent ranking is another milestone for the UAE as it continues to diversify its economy, attract global investment and establish itself as a hub for innovation, technology, tourism and entrepreneurship.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, welcomed the achievement and attributed the country's progress to the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan. Sheikh Mohammed said the UAE's strong performance is a result of years of focused planning, efficient governance and a commitment to maintaining high standards across all sectors of society and the economy.
UAE Leads in Economic Performance
The UAE's global ranking is one of the main highlights of the report. It puts it on par with the world's largest and the most developed countries.
The UAE also ranked first in 21 different indicators including government adaptability, low bureaucracy, employment opportunities, international experience, national culture, value systems, and air transport quality. These rankings underscore the country’s ability to foster economic growth and quality of life.
Government leaders have repeatedly stressed that competitiveness is not only about the top-tier status in international rankings. The goal is to develop the country to have a society that has opportunities, prosperity, and a high standard of living for the citizens, residents, businesses and investors.
Strong Results Across Multiple Sectors
The IMD World Competitiveness Yearbook 2026 also highlighted the UAE's strength in several emerging and strategic sectors.The country ranked second worldwide in the level of citizen trust in artificial intelligence, new business creation, women’s representation in parliament and city management. These results are indicative of the UAE’s determination to be at the forefront of technological innovation and social development.
In addition, UAE gained third place worldwide in national branding, access to artificial intelligence, tourism revenues, exports of goods, and energy infrastructure.The country also ranked fourth in government efficiency, private sector investment in artificial intelligence and the effectiveness of legal and regulatory frameworks.
Overall, UAE ranked among the world’s top 10 nations in 118 competitiveness indicators.
Why the Rankings Matter
The IMD World Competitiveness Yearbook (published annually by World Competitiveness Centre at the International Institute for Management Development (IMD) in Lausanne, Switzerland) is widely considered one of the most respected global benchmarks for economic competitiveness. The report assesses 70 countries with respect to how efficiently countries use their resources and policies to build long-term prosperity.
Rankings are based on four pillars: economic performance, government efficiency, business efficiency, and infrastructure. These categories consider 342 indicators of economic strength, governance, innovation, business climate, and social development.
A Growing Global Hub
These new rankings also cement UAE's growing reputation as a preferred destination for global investors, entrepreneurs, multinational companies and skilled professionals. Over the past decade, the country has invested heavily in digital transformation, artificial intelligence, renewable energy, advanced infrastructure and economic diversification. These efforts have helped reduce reliance on oil revenues while creating new growth opportunities across multiple industries.
As global investments and talent competition escalate the UAE’s impressive performance in IMD rankings is an indication of its economic durability and future strength. The UAE is now more likely to stay among the best world economies (with growth, innovation, competitiveness, and sustainable development) and so is good for the future.
