Saudi Arabia Achieves 13th Place in IMD World Competitiveness Yearbook 2026

Saudi Arabia's rise in global competitiveness signals a robust investment climate and potential economic partnerships for businesses.

• Saudi Arabia advanced to 13th place in the IMD World Competitiveness Yearbook 2026, up from 17th in 2025.
• The Kingdom secured third place among G20 nations, driven by improvements in government efficiency, business efficiency, and infrastructure.
• Saudi Arabia ranked first globally in the ITU ICT Development Index, showcasing its digital infrastructure advancements.

• Vision 2030 reforms initiated in 2016 have led to over 1,000 legislative and procedural changes aimed at enhancing the investment environment.
• Sustained growth in the non-oil sector and digital transformation efforts have positioned Saudi Arabia as a competitive player against established economies.
• Regional economic integration under GCC frameworks may amplify opportunities for cross-border investments and tourism, particularly with neighboring UAE.

Saudi Arabia's ascent in the IMD World Competitiveness Yearbook reflects a strategic overhaul under its Vision 2030 initiative, which aims to diversify the economy away from oil dependency. The Kingdom's jump from 17th to 13th place among 70 economies is not merely a numerical improvement; it signifies a comprehensive transformation across various sectors.

Key to this progress is the Kingdom's focus on enhancing government efficiency, which ranked first among G20 nations. This improvement is attributed to streamlined processes and increased transparency, making it easier for businesses to operate. Business efficiency also saw a notable rise, moving from 12th to 9th place, indicating a more favorable environment for startups and established companies alike.

Infrastructure improvements have been pivotal, with Saudi Arabia climbing from 31st to 28th in this category. Investments in transportation, logistics, and urban development have bolstered the Kingdom's capacity to support economic activities. The first-place ranking in the ITU ICT Development Index underscores the Kingdom's commitment to digital infrastructure, with nearly universal smartphone ownership and extensive 5G coverage facilitating a tech-savvy environment.

Moreover, the World Bank's assessment of statistical performance, which improved from 19th to 15th among G20 nations, reflects the Kingdom's enhanced data collection and analysis capabilities. This is crucial for informed decision-making and attracting foreign investment.

The implications of these advancements extend beyond mere rankings. They indicate a shift in the global economic landscape, where Saudi Arabia is positioning itself as a viable alternative for investment and business operations in the Middle East. The Kingdom's focus on non-oil GDP expansion and foreign direct investment interest suggests a long-term commitment to economic diversification, which is essential for sustainable growth.

• Investors: Increased opportunities for foreign direct investment in various sectors.
• Entrepreneurs: A more favorable business environment with improved startup indicators.
• Tech companies: Enhanced digital infrastructure opens avenues for tech innovation and services.
• Tourism and hospitality sectors: Potential growth in cross-border tourism and investment from neighboring regions.

• Foreign Direct Investment Trends: Monitoring shifts in FDI can indicate how attractive Saudi Arabia is becoming for international businesses.
• Non-Oil GDP Growth: Continued expansion in this sector will be crucial for assessing the effectiveness of Vision 2030 reforms.
• Regional Economic Integration: Watch for developments in GCC frameworks that may enhance collaboration and investment opportunities between Saudi Arabia and the UAE.