UAE ranks 5th globally in 2025 IMD World Competitiveness Ranking; Cabinet reviews trade achievements and approves13 international agreements
UAE Ranked 5th Globally in Competitiveness as Cabinet Reviews $1.4 Trillion Trade Achievement
The United Arab Emirates has achieved a landmark position in the 2025 IMD World Competitiveness Ranking, climbing to 5th place globally, further cementing its status as a dynamic economic powerhouse in the Middle East and beyond. The announcement coincided with a high-level Cabinet session chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, where ministers reviewed the country’s record-breaking trade performance—totaling $1.4 trillion USD in 2024.
Global Recognition for Economic Excellence
The IMD World Competitiveness Ranking assesses countries based on economic performance, government efficiency, business infrastructure, and innovation. The UAE’s leap into the top five is attributed to its:
- Strong macroeconomic stability
- Digital transformation
- Business-friendly regulatory environment
- Global investment appeal
- Rapid post-pandemic recovery
In his remarks, Sheikh Mohammed stated:
“The UAE is now among the world’s five most competitive economies — a testament to our vision, agility, and the relentless drive of our people. We do not aim to keep up; we aim to lead.”
Cabinet Highlights $1.4 Trillion Trade Success
In the same meeting, the Cabinet reviewed the UAE’s foreign trade performance, which surged past the $1.4 trillion mark in 2024—a historic high.
The Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, presented the latest figures, attributing the growth to:
- Strategic global trade agreements (CEPA deals with India, Indonesia, Turkey, and others)
- High-performance logistics hubs in Jebel Ali, Abu Dhabi Ports, and Sharjah
- Diversified exports including gold, aluminum, technology, and clean energy products
- Increased non-oil trade and free zone activity
“We have successfully diversified beyond oil. Today, over 70% of our trade is non-oil, and our agreements have opened over 2 billion consumers to UAE goods.”
Digital Economy and Green Growth Drive Competitiveness
According to the IMD report, the UAE excels particularly in technology adoption, e-governance, digital services, and green transition policies. The nation’s Digital Government Strategy 2031, combined with the Net Zero by 2050 strategic initiative, has improved global investor confidence and future-proofed key industries.
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, said:
“The UAE’s digital infrastructure and AI policies are now a global benchmark. We are building not just a smart nation, but a sustainable, knowledge-based economy.”
Key Sectors Powering the Economy
The UAE’s 2024 economic performance was driven by robust growth in:
- Tourism: Over 25 million visitors in 2024, led by Dubai and Abu Dhabi
- Real Estate: Booming investment from foreign buyers and developers
- Financial Services: DIFC and ADGM growth as regional finance hubs
- Energy Transition: Heavy investments in hydrogen, solar, and clean energy projects
Looking Ahead: The Path to Top 3
With its ascent into the top five, the UAE now sets its sights on breaking into the top three most competitive economies globally. To support this ambition, the Cabinet approved new initiatives including:
- Launch of a National Industrial Strategy 2.0
- Expansion of AI and space sector funding
- Fast-tracking digital trade corridors
- Strengthening public-private partnerships
Sheikh Mohammed reaffirmed the nation’s forward-thinking mindset, saying:
“We compete with the best, not to copy them, but to redefine excellence. Our ambition knows no borders.”
Global Reaction
Leaders and analysts from across the globe have praised the UAE’s achievement. Kristalina Georgieva, Managing Director of the IMF, tweeted:
“The UAE’s rise to the top five is no surprise. Sound policies, smart innovation, and global outreach are a model for emerging economies.”
Conclusion
The UAE’s fifth-place global competitiveness ranking and $1.4 trillion trade record reflect a nation not just participating in the global economy — but shaping it. As the country accelerates toward its Centennial 2071 Vision, it continues to position itself as a beacon of stability, opportunity, and forward-thinking governance.
