Abu Dhabi and Dubai have been highlighted as two key emirates in global economic changes in a new report from Oxford Economics. These two cities, along with Riyadh, the capital of Saudi Arabia, are included in the list of 28 "cities to watch" in the global city index of this UK-based consulting firm. This list was published on Tuesday, and the evaluation criteria included economy, human capital, quality of life, environment, and governance.
City Rankings and Evaluation Criteria
The cities of Abu Dhabi and Dubai are described as "dynamic competitors" in this report, rapidly following independent growth paths. Analysts at Oxford Economics emphasized that the economic models of these cities could serve as templates for other regions. Liam Sides, the director of urban services and the lead author of this report, stated that these successes represent a natural and reinforcing cycle of success. "A strong economy brings improved quality of life, which in turn attracts skilled talent," he said.
Dubai made a remarkable ascent in this list, rising from rank 51 to 42, achieving second place in human capital and 53rd in economy. Analysts at Oxford Economics noted that immigration reforms such as the golden visa and retirement visa programs are designed to encourage long-term stays, especially for high-income individuals. In contrast, Abu Dhabi fell 11 ranks to 84th, securing sixth place in human capital and 110th in economy. However, analysts emphasized that "economic growth in other emirates and the Gulf region feeds off the success of Abu Dhabi's economy."
Riyadh's Progress and Regional Challenges
Riyadh also witnessed significant progress, climbing 47 ranks to 50th place, achieving fourth place in human capital and 18th in economy. These advancements indicate important economic and social development in the city. Additionally, Riyadh has been less affected by political tensions compared to other cities in the Middle East due to its economic diversity and targeted investments.
However, analysts warned that the current conflicts in Iran may pose a threat to these advancements. "This conflict could impact the ability to attract skilled workers and investment, indicating that challenges in one area of our index can affect the performance of other areas."
Analysts also pointed to improvements in non-oil private sector business activity in the UAE in August, showing the fastest growth since December 2024. This indicates a sign of recovery in economic conditions following the negative impacts of the Iran war. Saudi Arabia's non-oil private sector also experienced significant growth in August, marking the strongest expansion in the past six months.
Ultimately, the major Gulf cities have established themselves as key players in the global economy and have increasingly attracted knowledgeable employees and innovative companies. Despite political challenges, these cities have managed to maintain their resilience and continue strong growth through swift safety policies and actions.
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