19/06/2026 01:49 AST
The UAE maintained its position as the world's fifth most competitive economy while ranking first globally in Economic Performance in the 2026 IMD World Competitiveness Ranking, reinforcing its status as one of the world's most resilient and future-ready economies.
The results were unveiled during a press conference ahead of the IMD World Competitiveness Summit in Zurich, where representatives of the world's top five competitive economies, Singapore, Hong Kong, Switzerland, Taiwan and the UAE - gathered to discuss the future of global competitiveness.
The annual ranking, compiled by the IMD World Competitiveness Center, assessed 70 economies across more than 260 indicators covering economic performance, government efficiency, business efficiency and infrastructure.
"Under the leadership of my brother, Sheikh Mohamed bin Zayed, the UAE continues to solidify its position among the world's most competitive countries. According to the latest Global Competitiveness Report 2026, the UAE ranked fifth globally and maintained its regional leadership for the tenth consecutive year. It ranked first globally in economic performance and topped 21 international competitiveness indicators, including the absence of bureaucracy and the government's ability to adapt policies. It also placed within the global top five in 67 indicators," said Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
"These results are the fruit of a national approach, the efficiency of institutions, and the efforts of work teams across various sectors. Our competitiveness is not a temporary goal, but an ongoing effort that enhances quality of life, solidifies global confidence in our country, and affirms that the UAE is steadfastly advancing toward a future of greater prosperity and leadership," he said.
Continuous national effort
Hanan Mansoori, Managing Director of the Federal Competitiveness and Statistics Centre (FCSC), said the UAE's position among the world's leading competitive economies reflects a long-term national model built on institutional agility, economic openness, trusted governance, digital readiness and continuous investment in future sectors.
"The UAE's presence among the world's leading competitive economies is not a one-year achievement," she said, noting that the country has climbed from 28th place globally two decades ago to its current position among the world's top five.
According to Mansoori, competitiveness in the UAE is not managed as an annual ranking exercise but as a continuous national effort that aligns government, business and society around a shared vision for growth and prosperity.
She highlighted the country's successful economic diversification strategy, noting that nearly 80 per cent of the UAE economy is now generated by non-oil activities, reflecting decades of investment in future-focused industries.
Mansoori also pointed to artificial intelligence as a key driver of the next era of competitiveness, arguing that AI is changing the traditional relationship between population size and economic capability by allowing countries to scale productivity and innovation without proportionate population growth.
Record growth
Arturo Bris, Director of the IMD World Competitiveness Center, said this year's results demonstrate that competitiveness is increasingly defined by institutional credibility rather than size, cost advantages or geography.
"Competitiveness in 2026 is no longer primarily a contest of cost, scale or even innovation, but one of institutional credibility," Bris said, adding that economies with strong institutions, predictable regulations and trusted governance are proving more resilient in an era of geopolitical fragmentation and uncertainty.
Economic indicators underscored the UAE's strong performance. The country recorded real GDP growth of 6.2 per cent in 2025, inflation of just 1.28 per cent and an unemployment rate of 1.75 per cent, among the lowest globally. The current account surplus reached 14.27 per cent of GDP, while inward foreign direct investment flows accounted for 7.9 % of GDP.
The report argues that the future of competitiveness will increasingly depend on the ability of economies to combine long-term vision, institutional agility, technological innovation and resilience.
While each economy presented a different model from Singapore's connectivity and Hong Kong's financial strength to Switzerland's stability, Taiwan's technology leadership and the UAE's diversification all pointed to the importance of trusted institutions, innovation and long-term policy consistency in navigating an increasingly fragmented global economy.
Singapore, which ranked first globally, attributed its performance to strengths in connectivity, innovation and talent development. Representatives said the country continues to expand its network of free trade agreements while investing heavily in future industries including semiconductors, healthcare, aerospace, quantum technologies and artificial intelligence.
Hong Kong, which retained second place globally, highlighted its strong legal and regulatory framework, business-friendly environment and position as a gateway between mainland China and international markets. Officials noted that the city ranked first globally in IPO fundraising last year and remains a major destination for foreign direct investment.
Switzerland and Taiwan pointed to innovation, research, technological leadership and economic resilience as key drivers of competitiveness. Taiwan highlighted its role in global semiconductor and artificial intelligence supply chains, while Switzerland emphasised the importance of open trade, education and regulatory reform in maintaining long-term competitiveness.
Khaleej Times
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