Saudi Arabia has secured the 17th position in the 2025 IMD World Competitiveness Ranking, reaffirming its status as a rising global economic powerhouse. This milestone places the Kingdom ahead of major economies like Australia and Italy, and just behind China. For executives and business leaders eyeing expansion, this signals a strong validation of Saudi Arabia's reform-driven growth strategy.
According to the IMD, the Kingdom's top-tier ranking is underpinned by gains in infrastructure, consistent strength in business efficiency, and significant improvements across economic and governmental performance. As Vision 2030 gathers momentum, this competitiveness ranking provides a compelling case for those looking to enter or expand in Saudi Arabia.
Saudi Arabia's climb from 32nd in 2023 to 17th in 2025 didn’t happen by chance. It reflects a sustained push across four core pillars assessed by the IMD:
These metrics capture the impact of wide-ranging reforms: from overhauling the Kafala system to launching integrated logistics zones and digital public services.
The Kingdom’s competitiveness now surpasses regional peers, confirming its leading position in the GCC. While the UAE continues to excel in certain business friendliness measures, Saudi Arabia’s scale, demographic strength, and reform trajectory provide a broader economic runway.
Recent moves such as public sector localisation, strategic FDI initiatives, and mega-project development have all played a part in boosting confidence.
Key Stat: Saudi Arabia now ranks ahead of countries like the United Kingdom, France, and South Korea in several sub-indicators of government efficiency and market dynamism.
Despite notable strides, Saudi Arabia still ranks 62nd globally in the World Bank’s Ease of Doing Business Index. While this places it in the mid-tier, several indicators point to simplification:
For foreign executives, the process remains complex compared to the UAE, but manageable with expert guidance. This is where Peninsula adds significant value, handling each regulatory step with precision, local insight, and dedicated support.
Saudi Arabia's improved global standing is not just symbolic. It unlocks:
For multinationals and SMEs alike, it’s a clarion call: Saudi Arabia is open for business, competitive on a global scale, and actively courting strategic partnerships.
Saudi Arabia’s rise in the competitiveness ranking confirms what our clients have been seeing on the ground: the Kingdom is not just evolving, it’s accelerating. For those considering market entry, now is the time to evaluate how your business can participate in this momentum.
Ready to explore Saudi Arabia as your next growth market? Book a free consultation with Peninsula today and discover how we can simplify your setup, mitigate your risk, and fast-track your success.
Alistair Paine brings 15 years of dedicated experience in Saudi market entry, guiding Fortune 500 companies and innovative scale-ups through successful establishment in the Kingdom. His expertise in Saudi company formation, licensing and market entry strategy, positions him as a leading authority and consultant in international business expansion to Saudi Arabia.
Schedule a free consultation with Alistair and the Peninsula team to understand which market entry strategy is best suited to your business setup in Saudi Arabia.
Email: Alistair@peninsulacs.com
