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The International Institute for Management Development placed Saudi Arabia 13th out of 70 economies in its 2026 World Competitiveness Yearbook, marking a four-position rise from 17th the year before. The kingdom achieved third place among G20 countries after the United States and China, according to the IMD assessment published in the annual report. This continues an upward trend that has seen the country gain 11 places since ranking 24th in 2022.
Saudi Arabia improved in all four competitiveness factors tracked by the yearbook, the IMD reported. Economic performance advanced to 12th from 17th, government efficiency likewise moved to 12th from 17th, business efficiency climbed to ninth from 12th, and infrastructure rose to 28th from 31st. The business efficiency gain marked the first time the kingdom has broken into the global top 10 in that category.
The Saudi Ministry of Commerce stated that the kingdom secured third globally in legislative support for business formation, an advance of one place, fourth in equal economic opportunity after a three-place gain, and seventh in efficiency of large corporations, up two positions. These outcomes followed a comprehensive review and update of 110 laws and regulations spanning companies law, commercial registration, trade names, franchising, e-commerce and bankruptcy procedures. The ministry attributed the progress to close coordination between public and private sectors that has simplified business setup and expanded commercial opportunities.
The IMD yearbook awarded Saudi Arabia first place in five criteria, including growth in commercial services exports, terms of trade, banking and financial services, corporate cybersecurity and internet users per thousand people. It ranked second in social cohesion, early-stage entrepreneurial activity, understanding the need for economic and social reform, and public-private partnerships supporting technological development. Third-place global standings were recorded in government adaptability to economic changes, public finance, transparency of government policy, creation of firms and electricity costs for industrial users.
The National Competitiveness Center, Saudi Arabia’s partner with the IMD, noted that the improvements reflect sustained implementation of structural reforms that have enhanced the regulatory framework and boosted private-sector participation. The center’s data fed into the yearbook’s combination of hard economic statistics and executive opinion surveys. Saudi Arabia posted an overall score of 84.02 points, positioning it immediately behind China and ahead of Luxembourg, Malaysia and Canada.
The report identified societal framework, health and environment, and education and scientific infrastructure as fields requiring additional focus to sustain momentum. Within sub-factors the kingdom ranked sixth in the labor market, ninth in business legislation, ninth in management practices and 13th in productivity and efficiency. The IMD assessment placed the United Arab Emirates fifth overall, Qatar 11th and Bahrain 20th in the regional context.
