Saudi Arabia climbs the competitiveness ladder

Over the past decade, Saudi Arabia has undertaken one of the world’s most ambitious economic transformation programs. Guided by Vision 2030, the Kingdom has accelerated economic diversification, implemented far-reaching regulatory reforms, strengthened the private sector, and modernized key institutions to enhance competitiveness and long-term sustainability.

These efforts have fundamentally reshaped the business environment, strengthened investor confidence, and elevated Saudi Arabia’s standing in the global economy. Increasingly, their impact is being reflected in international benchmarks.

A notable example is the IMD World Competitiveness Yearbook, one of the world’s leading assessments of national competitiveness. The annual ranking evaluates the ability of 70 economies to create and sustain an environment that supports business growth, productivity, and long-term prosperity.

Saudi Arabia’s progress in the rankings has been striking. The Kingdom rose from 24th place globally in 2022 to 17th in 2023, advanced to 16th in 2024, maintained a strong position at 17th in 2025, and reached a record 13th place in 2026.

Among G20 economies, Saudi Arabia ranked third overall, behind only the United States and China. More significantly, it outperformed all other G20 countries in both Government Efficiency and Business Efficiency, underscoring the effectiveness of its reform agenda and its success in fostering a more dynamic, competitive, and business-friendly environment.

The Kingdom’s progress is evident across the report’s core competitiveness pillars. Economic Performance improved from 31st place in 2022 to 12th in 2026, while Government Efficiency recorded an identical rise from 31st to 12th place. Business Efficiency advanced from 16th place to ninth globally, achieving a score of 87.8 percent and reflecting substantial improvements in productivity, corporate performance, and the overall business climate. Infrastructure also showed steady gains, rising from 34th place in 2022 to 28th in 2026, supported by continued investment in physical, digital, and institutional development.

Saudi Arabia’s strong performance is further illustrated by its rankings across individual indicators. The Kingdom placed first globally in commercial services export growth, terms of trade, banking and financial services support for business activities, corporate cybersecurity, and internet users per 1,000 inhabitants.

It also ranked second worldwide in social cohesion, total early-stage entrepreneurial activity, understanding the need for economic and social reforms, and public-private partnerships supporting technological development. These results highlight the breadth of progress achieved across economic, technological, institutional, and social dimensions.

In addition, Saudi Arabia secured third place globally in several key indicators, including the adaptability of government policies to economic change, public finance efficiency, transparency in policymaking, legislative support for business formation, societal value systems, regulatory compliance in the banking sector, and electricity costs for industrial users.

Overall, the Kingdom ranked among the world’s top 10 performers in 74 of the 262 indicators assessed by the IMD World Competitiveness Yearbook, demonstrating both the depth and sustainability of its progress.

The findings of the IMD Executive Opinion Survey further reinforce Saudi Arabia’s growing appeal as a destination for investment and business. Survey respondents highlighted the dynamism of the Saudi economy, government effectiveness, high-quality infrastructure, policy stability, access to finance, strong corporate governance, an effective legal framework, and a supportive business environment as key strengths.

Together, these factors have enhanced investor confidence and strengthened the Kingdom’s position as a leading regional hub for investment, innovation, and economic growth.

Saudi Arabia’s rise to 13th place in the 2026 IMD World Competitiveness Yearbook reflects the cumulative impact of sustained reforms and close collaboration between the public and private sectors. The achievement has been supported by the work of the Saudi Competitiveness and Business Center, in coordination with government entities and the General Authority for Statistics, to implement more than 1,000 legislative, procedural, and technical reforms designed to improve the business environment and enhance national competitiveness.

According to IMD, the Kingdom’s improved ranking was driven by strong performance across the four pillars of Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure, as well as notable gains in areas such as international trade, employment, and business legislation.

As one of the world’s most respected competitiveness benchmarks, the IMD World Competitiveness Yearbook provides independent validation of Saudi Arabia’s transformation journey. The latest results not only confirm the effectiveness of the Kingdom’s reform agenda but also reinforce its emergence as a resilient, competitive, and increasingly attractive destination for investment, business, and sustainable economic growth.

• Talat Zaki Hafiz is an economist and financial analyst.

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