The United Arab Emirates has reached a major milestone. According to the latest report by the International Institute for Management Development (IMD), the UAE now ranks among the top five most global competitive countries in the world. This is the first time the country has broken into this elite group, and it’s a big moment for the region.
The IMD World Competitiveness Ranking 2025 placed the UAE at number 5 globally, ahead of countries like Sweden, Norway, and Canada. The UAE was also ranked 1st in the Middle East and North Africa (MENA) region, maintaining its leadership role in the Arab world.
Let’s look at what this means and how the UAE got here.
What is the Global Competitiveness Ranking?
The IMD World Competitiveness Ranking is a yearly report that measures how well countries create a supportive environment for business and economic growth. It looks at over 330 indicators across four main areas:
- Economic performance
- Government efficiency
- Business efficiency
- Infrastructure
Each area is studied in detail using data, surveys, and global comparisons.
UAE’s Areas of Strength
The UAE performed well in many key areas. According to the 2025 report, the country ranked:
- 1st globally in government adaptability, immigration laws, and energy infrastructure
- 2nd globally in employment, labor force growth, and internet usage
- Top 10 globally in corporate tax, finance, technological infrastructure, and quality of life
These rankings show that the UAE is not only business-friendly but also prepared for the future.
Government Support and Vision
One of the biggest reasons behind the UAE’s success is strong government leadership. The UAE’s Vision 2031 and other national strategies have created a clear path for innovation, sustainability, and economic diversification.
UAE leaders have taken bold steps to reduce dependence on oil, invest in technology, and improve education and healthcare. These moves have helped the country become more attractive to investors, entrepreneurs, and global talent.
In a statement, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said:
“Reaching the top 5 globally is not the end. It’s just the beginning. Our real goal is to be number one.”
How the UAE Supports Businesses
The UAE is known for its business-friendly environment. Setting up a company is quick, and there are many free zones that offer tax benefits. Foreign investors can own 100% of businesses in many sectors.
Also, the UAE continues to improve its laws to support innovation, protect intellectual property, and allow for easier hiring of global talent. These steps make the country a hotspot for startups and global companies.
Focus on Technology and Infrastructure
Another major area of improvement is the UAE’s focus on technology and infrastructure. The country has heavily invested in:
- 5G networks
- AI and robotics
- Smart cities like Dubai and Abu Dhabi
- Green energy projects such as solar parks and hydrogen fuel
Dubai and Abu Dhabi have also become major centers for fintech, crypto, and AI startups, thanks to supportive regulations and government backing.
Education, Innovation, and Workforce Development
The UAE knows that its people are its biggest strength. That’s why the government continues to invest in education and skills development. Programs like the National Program for Coders, UAE Artificial Intelligence Strategy, and digital transformation initiatives aim to prepare the workforce for the future.
Also, the country encourages young entrepreneurs through startup incubators and funding programs. As a result, more young Emiratis and residents are launching innovative businesses that compete on the global stage.
Recovery After COVID-19
The UAE also impressed the world with its quick and strong recovery after COVID-19. While many countries struggled, the UAE reopened safely, rolled out vaccines early, and supported businesses with financial aid.
This helped the economy bounce back faster, especially in sectors like tourism, aviation, real estate, and retail.
In 2024, the UAE’s non-oil economy grew by more than 5%, and experts expect even stronger growth in 2025. This economic momentum helped the country climb in the competitiveness rankings.
Regional Leadership and Global Goals
Being number one in the Arab world is nothing new for the UAE, but reaching the top 5 globally puts it in a new league. The country is now seen as a model for other developing nations, especially in the MENA region.
The UAE is also playing a growing role in global affairs—hosting events like COP28, leading climate talks, and pushing for more peaceful and sustainable development worldwide.
What’s Next for the UAE?
The UAE’s goals don’t stop here. With Vision 2031, the government aims to make the UAE:
- One of the top 3 countries in the world
- A hub for innovation, AI, and space exploration
- A leader in clean energy and climate action
- A place where people from all backgrounds can thrive
Officials have made it clear that they are not satisfied with just being in the top five. The drive for excellence continues.
Final Thoughts
The UAE’s rise to the top five in global competitiveness is a big moment, not just for the country but for the region. It proves that with clear vision, strong leadership, smart policies, and a focus on innovation, any nation can rise to the top.
This achievement is not only a result of economic numbers—it reflects a country that values progress, opportunity, and forward-thinking leadership. As the UAE keeps climbing, the world is watching closely.
Also read: GCC Nations Lead in Luxury Wellness Resorts and Medical Tourism Surge
