Saudi Arabia ranks 17th globally in competitiveness index as it outshines economic heavyweights
JEDDAH: Saudi Arabia has maintained its spot in the top 20 of the World Competitiveness Ranking, ahead of global heavyweights the UK, Germany and France.
The Kingdom secured 17th position on the list, driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms.
Issued by the International Institute for Management Development's World Competitiveness Center, the ranking is widely recognized as a benchmark for evaluating how effectively countries utilize their resources to drive long-term economic growth.
Saudi Arabia was placed just behind China in 16th and ahead of Australia in 18th place.
Although this marks a slight drop from 16th in 2024, Saudi Arabia's 2025 ranking represents a significant improvement from 32nd in 2023 and 24th in 2022, underscoring its rising economic stature.
As part of Vision 2030, Saudi Arabia launched the National Competitiveness Center in 2019, with the organization now working with 65 government bodies to drive reforms centered on productivity, sustainability, inclusiveness, and resilience.
According to the World Competitiveness Center, the Kingdom needs to 'continue efforts to promote renewable energy and reduce carbon emissions' and 'carry on enhancing overall competitiveness across multiple pillars.'
Improvement will also come if Saudi Arabia continues to 'invest even more in human capital development across all economic sectors' and push ahead with 'ongoing government endeavors to achieve the targets in the Saudi 2030 vision.'
The IMD report is one of the world's most comprehensive competitiveness benchmarks, evaluating 69 countries across four pillars: economic performance, government efficiency, business efficiency, and infrastructure.
The ranking shows that GCC countries continue to demonstrate their growing economic strength and regional importance, with the UAE leading the group, securing fifth place globally, reflecting its diversified economy and strategic initiatives to attract investment.
Qatar follows in ninth place, supported by substantial infrastructure development and robust financial resources.
Bahrain was ranked 22, Oman came in at 28, and Kuwait was placed at 36, showing steady progress through structural reforms and sectoral investment despite ongoing challenges.
These rankings underscore the GCC's ambition to strengthen global economic resilience and competitiveness.
Switzerland, Singapore, and Hong Kong lead the ranking, while Canada, Germany, and Luxembourg saw the most notable improvements among the top 20 economies.
Saudi focus
According to the IMD, Saudi Arabia has made progress in several key economic areas, although some aspects still require improvement.
On the economic performance indicator, the Kingdom ranks 17th globally with a score of 62.3. Its domestic economy scored 59.2, placing it 25th worldwide, an improvement of six positions from the previous year.
International trade advanced three places to 29th with a score of 56.0, while global investment climbed four spots to 16th with a score of 57.8, signaling increased investor confidence.
However, the employment sector declined slightly, dropping three positions to 29th with a score of 55.6.
Inflationary pressures impacted the prices indicator, which fell eight places to 19th despite maintaining a relatively strong score of 60.7.
These mixed results reflect Saudi Arabia's ongoing efforts to strike a balance between growth and economic stability amid global and domestic challenges.
Public finance indicators remain solid, with a score of 69.5, placing the Kingdom 13th globally, despite a modest three-position drop.
Tax policy holds steady at 67.6 points and 12th place, with a similar three-rank decline. The institutional framework experienced a more pronounced decline, dropping seven places to 27th with a score of 58.6, indicating potential areas for reform.
In contrast, business legislation improved, rising two places to 13th with a score of 67.6, indicating regulatory progress. The societal framework remains a key challenge, ranking 55th with a score of 44.2, representing a nine-position decline, which highlights the need for continued social and structural development to support economic goals.
Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Productivity and efficiency showed further strength, scoring 66 and placing the Kingdom 15th, up six spots.
The labor market remains a key strength, ranking 9th despite a four-place drop, with a score of 64.2. The finance sector gained three ranks to 19th with 63.4 points, while management practices rose to 17th with a score of 64.
Attitudes and values remain a significant national asset, ranking third globally with a score of 81.6, reflecting a strong culture of resilience and ambition.
Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. Technological infrastructure rose 10 places to 23rd with a score of 59.5, and scientific infrastructure improved nine spots to 29th with a score of 52.1.
Health and environment indicators gained slightly, moving up one place to 47th with a score of 47.5. Education declined marginally, down one position to 39th with a score of 55.4, signaling an area for continued focus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
The GCC could emerge as a winner from the remapping of the global order
Global linkages are shifting amid geopolitical tensions, the growing influence of national economic and security considerations in policymaking, and a fractured global trade landscape. Despite some easing of recent trade tensions, investors continue to face economic ambiguity and policy unpredictability. New tariff structures are compelling businesses to rethink their strategies and major trade blocs are diversifying their trade and investment partnerships. In this unsettled climate, the demand for stability and predictability is high. The Gulf countries are well equipped to provide global investors with clarity, policy stability and predictability. The economies of the Gulf are thriving despite global headwinds, regional conflicts and uncertainty. Sound policies, solid reform momentum and the steadfast implementation of ambitious diversification plans are reshaping the region's economic landscape. Investments in state-of-the art infrastructure, including logistics, alongside accelerated digitalization strategies and growing business efficiency have positioned Gulf Cooperation Council countries as among the top performers in global competitiveness rankings. Spearheading the transformation are the region's sovereign wealth funds, which are among the world's largest — with assets under management expected to reach about $7 trillion by 2030. The funds have adopted a calculated approach to ensure that their domestic and global investments are in line with the strategic objectives of output diversification and intergenerational equity. At the same time, the GCC countries are emerging as constructive global actors, demonstrating leadership in advancing both regional stability and global cooperation — further strengthening their appeal to global investors. Milestones include the launch of the G20 Common Framework — a coordinated debt relief scheme for low-income countries — under Saudi Arabia's presidency; the UAE-hosted COP28, which saw parties reach a historic agreement to transition away from fossil fuels; and the instrumental role played by Saudi Finance Minister Mohammed Al-Jadaan, as chair of the International Monetary and Financial Committee, in fostering global dialogue and cooperation during a period of global turbulence. The Gulf countries are well equipped to provide global investors with stability and policy predictability amid global fragmentation and the remapping of the international order. Hazar Caracalla This is an opportune moment to build on the progress made and enhance the GCC countries' growing strategic role by advancing regional coordination and deepening integration. The foundations — policy maturity, ample capital and global leadership — are already in place. However, closer collaboration across national agendas could help further unlock their potential, particularly in light of the structural shifts underway in the global order. Rather than pursue overlapping objectives, aligning efforts based on complementarity, country-specific niches and global changes can deepen the bloc's integration into global supply and investment chains. Since its founding in 1981, the GCC has become a mature and successful trade and economic bloc and has made important strides toward integration. The customs union agreement eliminated intra-GCC tariffs, unified external tariffs and eased trade restrictions. More recently, the removal of local content requirements has supported intraregional trade and value chain integration. However, as the global system is being reconfigured, with trade increasingly occurring within geopolitical blocs rather than between them — a trend highlighted by a recent International Monetary Fund analysis — the case for deepening regional integration has never been stronger. Investing in regional infrastructure and accelerating the implementation of the Gulf Railway — a strategic connectivity project — would further boost cross-border trade and investment and strengthen the Gulf's supply chains. At the same time, advancing policies to facilitate the movement of nonnationals within the bloc, including rolling out the unified visa for tourists, would support services-driven growth, notably boosting tourism activities in line with the 2022 GCC Tourism Strategy. Deepening integration and advancing coordination within the GCC would reinforce the bloc's growing strategic role in global trade and investment. Hazar Caracalla Together, these steps would enable the Gulf countries to better leverage their geostrategic location and emerging trade corridors with the EU, Africa and Asia, positioning the GCC as a vital connector across the three continents. The GCC countries have pursued multiple bilateral free trade and comprehensive economic partnership agreements in recent years. These frameworks serve national priorities and offer many benefits. They advance integration in global value chains and trade networks, expand market access, attract foreign direct investment and support export diversification and knowledge transfer in the Gulf. Yet there is growing value in negotiating trade agreements together as a bloc. While bilateral agreements can complement regional priorities, the benefits of a unified trade strategy are greater — particularly with large economies and trading blocs. Collectively pursuing free trade agreements with India, Indonesia, Japan, China, the UK and the EU would enhance the Gulf's global position and bargaining leverage. It would reinforce coherence within the bloc and create synergies between industrial policies and trade diversification objectives. US President Donald Trump's recent visit to Saudi Arabia, Qatar and the UAE underscored the growing strategic role of GCC countries in global business and investment. The bloc can capitalize on this momentum by reinforcing coherence through deeper integration and closer coordination. This would enable the GCC to reroute trade and investment flows through the region, better harness the economic opportunities brought about by a changing global order, and channel these into more sustainable and impactful domestic transformations.
Argaam
2 hours ago
- Argaam
MEWA: New regs for livestock sales to come into force on June 26
Saudi Arabia's Ministry of Environment, Water and Agriculture (MEWA) is slated to enforce its decision to introduce a new set of regulations in its livestock markets as of June 26, mandating sale by weight rather than size. The new rules are aimed at clamping down on the longstanding profiteering of livestock sales across public markets nationwide, ensuring fair pricing for both producers and consumers, according to a ministerial statement picked up by Argaam. The decision supports the Kingdom's drive towards environmental and economic sustainability as well as aligns with the Saudi Vision 2030 goals. The ministry set out guidelines to standardize the weighing and selling of slaughter-ready animals, while preserving animal wealth and eliminating market monopoly. The framework seeks to maximize benefits, promote fairness and transparency, and enhance service quality and sustainability in public markets. The rules cover livestock inside and outside pens. For pen sales, livestock cannot be sold without a pre-recorded weight. Weights must be measured using approved scales that meet official standards, and pen operators must supply the scales. Sellers must ensure accuracy, regularly maintain and clean weighing equipment to prevent diseases, besides providing safe conditions that avoid harming or stressing animals. All weight transactions must be logged with the respective date, animal type, recorded weight, and any additional data required by authorities. Weighing must be visible to both parties, and buyers must be allowed to dispute and request a reweigh. Fraud, scale tampering, or any misleading practices are banned. Ministry inspectors can suspend any non-compliant scale until compliance with the set standards. Operators must also cooperate with inspectors and provide requested information. Staff must be trained in proper weighing procedures to ensure accuracy and efficiency. Outside the pens, in public market areas, sales must also follow certified weighing procedures.
Arab News
2 hours ago
- Arab News
Saudi Arabia, Kuwait sign MoU to boost anti-money laundering efforts
RIYADH: Saudi Arabia and Kuwait have signed a memorandum of understanding to bolster cooperation in the fight against money laundering and the financing of terrorism, reinforcing regional efforts to strengthen financial security. The agreement, inked between Saudi Arabia's General Department of Financial Investigations and Kuwait's Financial Intelligence Unit, was finalized on the sidelines of the second meeting of the Gulf Cooperation Council Committee of Financial Intelligence Units, held in Kuwait, the Kuwait News Agency reported. The MoU aims to enhance intelligence sharing and operational coordination between the two nations. It is expected to significantly improve the effectiveness of the region's financial crime prevention frameworks, aligning with international standards and bolstering joint mechanisms among GCC financial intelligence units. The signing follows a virtual workshop hosted in March by the National Center for Non-Profit Sector Development, which focused on preventing money laundering and terrorist financing within non-profit organizations, including charitable groups and foundations. The agreement also reflects broader economic ties between the two Gulf neighbors. In February, Kuwait's exports to Saudi Arabia reached SR137 million ($36.5 million), up 19.6 percent from the previous year, according to data from the Observatory of Economic Complexity. Officials from both countries highlighted the MoU's role in advancing national capabilities, fostering regional integration, and aligning with best practices in financial intelligence and compliance. The renewed cooperation comes as Saudi Arabia continues to encourage Kuwaiti investment in its mining and industrial sectors. In April, Minister of Industry and Mineral Resources Bandar Alkhorayef met with a delegation of Kuwaiti businessmen during an official visit to Kuwait, emphasizing untapped opportunities in the Kingdom's mining industry. Alkhorayef underscored the sector's importance to Saudi Vision 2030, which aims to position the Kingdom as a global industrial and mining hub. He cited estimates valuing Saudi mineral resources at over SR9.3 trillion. Combatting money laundering remains a national priority for Saudi Arabia, which has implemented a comprehensive legal and regulatory framework to protect the integrity of its financial system and prevent illicit funding activities, including terrorism financing.
