Saudi Arabia Achieves Significant Global Competitiveness Rankings in IMD 2026 Report

Saudi Arabia's improved rankings signal a shift towards a more business-friendly landscape, impacting regional economic dynamics.

• Saudi Arabia advanced to third globally in legislative support for business formation, according to the IMD World Competitiveness Yearbook 2026.
• The Kingdom ranked fourth in economic opportunity equality and seventh in efficiency of large companies, reflecting significant regulatory reforms.
• Overall, Saudi Arabia rose to 13th among 70 economies, marking a four-place improvement from the previous year.

• Vision 2030: Launched in 2016, this initiative aims to diversify the economy and modernize regulations to enhance competitiveness.
• Legislative reforms: The Kingdom reviewed and developed 110 legislations, including updates to company and commercial laws, which directly support business formation.
• Public-private collaboration: Ongoing partnerships between government and private sectors have been crucial in driving these improvements.

On September 23, 2026, the Ministry of Commerce announced Saudi Arabia's impressive performance in the IMD World Competitiveness Yearbook. The Kingdom's rise to third place globally in legislative support for business formation is a clear indicator of its commitment to fostering a conducive environment for entrepreneurship. This ranking reflects a one-place improvement from the previous year, showcasing the effectiveness of recent reforms.

In addition to legislative support, Saudi Arabia achieved fourth place in economic opportunity equality, climbing three spots. This metric assesses how evenly economic opportunities are distributed across the population, which is vital for attracting foreign investment and promoting social stability. The Kingdom's seventh-place ranking in the efficiency of large companies per international standards further underscores its commitment to enhancing operational frameworks for businesses.

These advancements are not mere statistics; they are the result of a comprehensive review and development of 110 legislations. Key areas of focus included the modernization of company laws, commercial registries, trade names, e-commerce regulations, and the establishment of commercial courts. The introduction of frameworks for insolvency and movable assets guarantees also plays a significant role in creating a more robust business environment.

The overall ranking of 13th out of 70 economies, up four places from the previous year, positions Saudi Arabia as a competitive player on the global stage, particularly among G20 nations where it ranks third, following the United States and China. This upward trajectory is indicative of the Kingdom's strategic focus on regulatory modernization and public-private partnerships, which are essential for enhancing its global competitiveness.

The implications of these rankings extend beyond mere numbers. They reflect a broader trend of economic diversification and modernization that aligns with Saudi Arabia's Vision 2030 goals. As the Kingdom continues to improve its business environment, it is likely to attract more foreign investment, foster innovation, and create job opportunities, ultimately benefiting the economy as a whole.

• Entrepreneurs: Increased support for business formation will make it easier to start and grow companies.
• Investors: Improved rankings may boost investor confidence, leading to increased capital inflows.
• Large corporations: Enhanced efficiency standards will benefit large companies looking to optimize operations.

• Legislative updates: Keep an eye on new laws and regulations that may further enhance the business environment.
• Foreign investment trends: Monitor changes in foreign direct investment (FDI) as a response to the improved rankings.
• Regional partnerships: Watch for increased collaboration between Saudi and Dubai-based firms, which could lead to new joint ventures.