The most competitive cities in the GCC in 2025

As Gulf economies continue to diversify and attract global investment, understanding the true competitive advantage of their cities has never been more critical. Our latest Global Cities Index 2025 analysis of 1,000 cities around the world allows us to put major GCC cities in the context of global peers, revealing the dynamics behind their economic vitality, human capital, quality of life, and long-term sustainability. Using over 25 performance indicators, from GDP growth to life expectancy and corporate presence, we uncover what makes cities like Dubai, Riyadh, and Abu Dhabi stand out, while also highlighting opportunities for emerging cities like Taif and Al Hofuf.

The leaders: Dubai, Abu Dhabi, and Riyadh

Dubai is the top-ranking Gulf city in the index, with an impressive score of 77.1 out of 100 reflecting its well-rounded strength across economic, social, and demographic dimensions. Its high human capital score (86.6), driven by strong educational attainment and a growing university presence, underlines its transformation into a knowledge-based economy. Additionally, the city’s robust economic diversity signals its significant progress in reducing reliance on hydrocarbons, reinforcing Dubai’s position as a dynamic, resilient, and future-focused city. Strategic investments in infrastructure, technology, and regulatory reform have further enhanced its global competitiveness. These efforts continue to position Dubai as a regional benchmark for innovation, sustainability, and economic agility

Abu Dhabi ranks second in the Gulf region in the index (73.0), reflecting its strong performance across key dimensions of competitiveness. The city excels in human capital and education (84.0), supported by robust institutions and a highly educated workforce, which position it as a regional hub for talent and innovation. Its quality of life score (74.4) is bolstered by high standards in healthcare, housing, safety, and public services, making it an attractive destination for long-term residence and corporate investment. While Abu Dhabi does not have the largest economy in absolute terms, its relatively high income per capita and solid economic stability score highlight the city’s effective management of public finances and long-term economic planning. These strengths combine to make Abu Dhabi a balanced and forward-looking city that continues to attract residents and investors alike.

However, despite both cities’ strengths, they face affordability challenges in the housing market. While Dubai spans a large area overall, areas such as Downtown Dubai, Palm Jumeirah, and Business Bay face space limitations due to dense construction, surrounding roads, and proximity to the coastline, thereby limiting opportunities for new housing supply and contributing to higher average prices. A similar pattern can be seen in Abu Dhabi, where limited land availability in areas such as Saadiyat Island, Al Reem Island, and Yas Island—combined with a continued emphasis on upscale projects—has constrained efforts to introduce more varied housing options, meaning that many homes are still unaffordable for a large portion residents. To address this, Dubai and Abu Dhabi could make housing more affordable by increasing the supply of homes targeted at middle- and lower-income groups. Expanding freehold ownership opportunities for expatriates and supporting mixed-use developments that link housing with jobs and essential services would also contribute to improved affordability over the long term.

Riyadh ranks third in the region (70.9), standing out for its economic momentum within the Gulf. The city is poised to see the fastest economic growth of any Gulf city over the next five years. With leading scores in employment growth and economic diversity, Riyadh is the most improved city in terms of economic reform. The city stands out for its high global safety rankings and steady improvements in quality of life, drawing in both Saudis and international professionals. Its low crime rates and strong sense of community make it especially attractive to families and working professionals seeking stability and opportunity. Major projects, such as the 220-kilometer Sports Boulevard, are aimed at fostering healthier lifestyles, meanwhile the expansion of King Khalid International Airport—which connects the city to 113 destinations worldwide—underscores Riyadh’s emergence as a dynamic and globally connected metropolis.

Mid-tier performers: Doha, Jeddah, Al Ain, and Dammam

Cities like Doha (64.8) and Jeddah (58.3) perform better in the index compared to some of their Gulf peers, reflecting strong foundations with room for further growth. Doha stands out for its high GDP per person, robust employment growth prospect, and its exceptional infrastructure, underscoring its economic strength. However, lower scores in economic diversity and corporate headquarters suggest continued reliance on core sectors such as energy and construction. Jeddah presents a more balanced profile, with notable strengths in human capital and economic stability, supported by its role as a key logistics and pilgrimage hub. The city scores well in metrics such as population growth, age profile, and education, further enhancing its long-term prospects, though weaker scores in corporate presence and income equality may limit investment appeal. Its weaker score on environmental standards also highlights infrastructure limitations, such as inadequate drainage and its growing exposure to climate-related rainfall inconsistencies, emphasising the need for robust urban planning.

Meanwhile, Al Ain and Dammam, while ranking in the middle of the pack globally, have distinct strengths. Al Ain stands out with a very high rank in human capital (39th out of 1,000), driven by the presence of top national institutions like UAE University, a strong K–12 system, and a well-developed academic ecosystem. Dammam benefits from strong economic indicators and sustained employment growth, driven by its industrial economy and proximity to major oil and gas infrastructure. However, despite Vision 2030’s focus on diversifying away from oil, the city still lags in its economic diversity score.

Emerging contenders: Medina, Mecca, and Khamis Mushait

Medina, Mecca, and Khamis Mushait represent emerging contenders in Saudi Arabia’s urban landscape, each with key strengths and untapped potential. Medina and Mecca benefit from their religious significance and strong demographic profiles, including youthful populations and solid education indicators, which makes them promising locations for long-term investments in housing, services, and technology. Their steady scores in economic stability and human capital reflect a foundation for future growth, especially as both cities pursue modernization plans tied to Vision 2030. While they both focus on religious tourism, they can improve on their corporate HQ ranks by creating special zones for Islamic fintech and hotel chains to set up regional bases.

Although Khamis Mushait has a lower overall score (45.1), the city stands out for its rapid GDP growth and demographic vitality. Although it currently lags its Gulf peers on universities, corporate headquarters, and a robust educational base, it holds major opportunities in sectors like logistics, defence, and real estate, owing to its young, expanding population and its strategic position near military infrastructure. With targeted investments in higher education, and a focus on diversifying its economy, the city has potential to improve its ranking among the 1,000 cities.

The progress and potential of these cities reflect the increasing complexity and depth of Saudi Arabia’s urban transformation beyond its traditional major metros.

Challenges and untapped potential: Al Hofuf and Taif

Al Hofuf and Taif currently rank lower in economic performance, but they both possess untapped potential for strategic development. Al Hofuf demonstrates moderate economic stability and steady population growth; however, its small GDP size and low employment growth point to the limited progress made in diversifying beyond its traditional base in agriculture and small-scale industries. Taif, despite posting the lowest economic score in the Gulf, benefits from a youthful and expanding population and displays natural and cultural assets that position it well for tourism development and agricultural innovation. Its economic challenges highlight the need for education reform and infrastructure investment to fully leverage these advantages. Together, these cities exemplify overlooked markets that, with targeted support, could evolve into important regional centres.