Saudi Arabia's Position in Global Competitiveness Indexes

The Kingdom of Saudi Arabia's Position in Global Competitiveness Indexes refers to the classifications of international growth indicators for the Kingdom, which express the development of the Kingdom, its institutions, and its performance in the fields where it competes with countries of the world. The beginning of the Kingdom's progress in the ranking of these indicators was when it jumped in securities regulation to sixteenth place globally in 2011, from twenty-sixth place in 2010 and sixty-fourth place in 2009, according to the Global Competitiveness Report, which is prepared and published by the World Economic Forum (WEF) in Geneva.

The Kingdom continued its upward trend in global competitiveness rankings, advancing eight positions in the 2022 edition of the World Competitiveness Yearbook issued by the International Institute for Management Development (IMD). The Kingdom ranked twenty-fourth out of sixty-three of the most competitive countries globally.

The Kingdom recorded the second-best progress among the countries measured. The report's indicators showed that the Kingdom ranked seventh among G20 countries. Its ranking improved in the four main pillars measured by the report: in the economic performance pillar, it advanced from forty-eighth to thirty-first place; in the government efficiency pillar, it moved up from twenty-fourth to nineteenth; in the business efficiency pillar, it advanced from twenty-sixth to sixteenth; and in the infrastructure pillar, it improved from thirty-sixth to thirty-fourth.

The Kingdom also ranked among the top ten globally in many sub-index, including adaptation to government policy, digital transformation in companies, long-term labor force growth, public finance management, public debt, unemployment policies, social cohesion, stock market capitalization, venture capital availability, domestic energy production, industrial electricity costs, cybersecurity in companies, government spending on education, entrepreneurial mindset among business managers, early-stage entrepreneurial activities, and national culture.

In 2023, the Kingdom ranked seventeenth globally out of sixty-four of the most competitive nations, marking the first time it entered the top twenty in the World Competitiveness Yearbook rankings.

According to the report, the Kingdom advanced seven positions in the 2023 edition, driven by strong economic and financial performance in 2022 and improvements in business regulations. This placed the Kingdom third among G20 countries for the first time, surpassing advanced economies like South Korea, Germany, France, Japan, Italy, India, the United Kingdom, China, Mexico, Brazil, and Turkey.

The Kingdom improved in three of the four main areas assessed in the report: In economic performance, it climbed from thirty-first to sixth place; in government efficiency, it rose from nineteenth to eleventh; and in business efficiency, it improved from sixteenth to thirteenth, while maintaining its previous ranking of thirty-fourth in infrastructure.

Economic reforms implemented in the Kingdom contributed to achieving the top three positions in twenty-three indicators, including first place globally in several areas, such as public finance efficiency, understanding the need for economic and social reforms, funding for technological development, and support for public-private partnerships in technological advancement. The Kingdom also ranked second globally in indicators like real gross domestic product (GDP) growth rate, long-term employment growth, government adaptability to economic changes, social cohesion, unemployment legislation, cybersecurity, and legal support for technology development and application.

It placed third globally in indicators like economic resilience, consumer price inflation rates, digital transformation in companies, stock market capitalization, and venture capital availability.

In the 2024 edition of the World Competitiveness Yearbook, the Kingdom ranked sixteenth globally out of sixty-seven countries, advancing one position from 2023. This improvement was supported by enhancements in business regulations and infrastructure, positioning the Kingdom fourth among G20 countries.

According to the report, the Kingdom advanced in the business efficiency pillar from thirteenth to twelfth place, while maintaining its previous position (thirty-fourth) in the infrastructure pillar. It also remained among the top twenty in economic performance and government efficiency.

The Kingdom’s economic reforms also led to top three positions in twenty-four indicators, including first place globally in areas such as long-term employment growth, social cohesion, long-term labor market growth, understanding the need for economic and social reforms, cybersecurity, and the number of internet users per thousand population. The Kingdom ranked second globally in several indicators, including digital transformation in companies, stock market capitalization, availability of venture capital, technology development and application, and funding for technological advancement. Additionally, it achieved third place globally in key indicators such as trade exchange, economic resilience, government adaptability to economic changes, unemployment legislation, and total early-stage entrepreneurial activity.

The Global Competitiveness Report serves as a key indicator for countries to assess their developmental status and focus on improving growth conditions. The Kingdom was officially included in the IMD World Competitiveness Yearbook for the first time in 2017. This report has been evaluating the performance of the most competitive countries globally since 1989, analyzing 337 sub-indicators to measure various aspects of competitiveness across sixty-three economies.

The Kingdom is committed to enhancing its ranking and position in global competitiveness indicators, as these rankings highlight its progress across various developmental fields and encourage improvement. In the 2017-2018 Global Competitiveness Report, one notable improvement was in the primary education enrollment rate, where the Kingdom advanced from fifty-second to forty-second globally, with a net enrollment rate increase from 96.4 percent to 97.6 percent.

Such indicators provide a motivating outlook for identifying weaknesses and converting them into strengths to improve rankings. In the same year, under the efficiency and effectiveness category, the Kingdom improved its ranking in the higher education and training indicator from forty-sixth to forty-third globally. It also climbed from forty-eighth to forty-first in the quality of the educational system indicator and from fifty-sixth to forty-sixth globally in university-industry collaboration in scientific research.

In 2022, the Kingdom made significant strides in the indicators related to education, research, and innovation, advancing to the twenty-fourth position compared to the thirty-second in 2021. It also improved four places in the education pillar, ranking thirty-seventh compared to forty-first in 2021, and advanced two places in the scientific infrastructure pillar, reaching thirtieth compared to thirty-second in 2021. These advancements contributed to the Kingdom's improved position in the main infrastructure pillar, rising to thirty-fourth compared to thirty-sixth in 2021.

Additionally, the Kingdom advanced nine positions in university achievement indicators, reaching twenty-eighth in 2022 compared to thirty-seventh in 2021. It also climbed to thirty-first in global university rankings compared to thirty-ninth in 2021 and reached twenty-sixth in the intellectual property rights indicator during 2022 compared to thirtieth in 2021.

The Kingdom advanced by three ranks in indicators such as net international student flow, total public spending on education, women holding academic degrees, the use of robots in education and research and development, as well as the student-to-teacher ratio in higher education and science graduates. ‏

The Kingdom's government entities and institutions have continued to support the improvement of the competitive environment for various activities. The Council of Economic and Development Affairs closely follows the enhancement of these indicators that promote growth and development in the Kingdom. In the Global Competitiveness Report 2020, the Kingdom advanced to twelfth place in the venture capital availability index, in addition to achieving third place globally in the minority investor protection index. Moreover, the Kingdom progressed to twenty-fourth globally in the 2020 Global Competitiveness Report, having been in thirty-ninth place in 2018.

The 2020 Competitiveness Report also witnessed further progress in the Kingdom's ranking across several indicators. The participation of Saudi women in the workforce increased to 33.2 percent in 2020, compared to 19.4 percent in 2017. Furthermore, the Kingdom achieved the top spot globally in digital competitiveness among G20 countries, secured first position worldwide for 5G internet speed, and ranked sixth among G20 nations in the International Telecommunication Union’s Global Cybersecurity Index.

In 2022, the Kingdom achieved another milestone by advancing to thirty-third place in the Travel and Tourism Development Index (TTDI) published by the World Economic Forum (WEF), marking a leap of ten positions compared to 2019.

The NCC monitors competitiveness indicators and oversees continuous improvement processes in international reports. It is an independent government entity with its own legal personality and is organizationally linked to the Council of Economic and Development Affairs. The center was established in 2019 and aims to develop and enhance the competitive environment in the Kingdom, as well as improve its ranking in relevant global indicators and reports.

The center works to encourage all governmental entities in the Kingdom to develop their capabilities and elevate their performance levels. To achieve this, it monitors more than thirty-two global reports and indicators that are aligned with the strategic pillars targeted globally to enhance the competitiveness of nations. The goal is to analyze the current situation and propose economic reforms that will contribute to improving the Kingdom's ranking in these reports and indicators.

The center focuses on four reports, which are the most comprehensive and cover key pillars of competitiveness (including a secure legislative environment, infrastructure, labor market, government spending, and human capital). These reports are: the Global Competitiveness Report issued by the World Economic Forum (WEF), which addresses national competitiveness issues and publishes an annual report based on its indicators; the Women, Business, and the Law Report issued by the World Bank Group, which includes an index measuring the impact of laws and regulations on women's economic opportunities in 190 economies, analyzing economic rights across important stages of a working woman's life through eight indicators; the Human Capital Index issued by the World Bank, which quantifies the contribution of health and education to the expected productivity levels of the next generation of workers; and the World Competitiveness Yearbook issued by the International Institute for Management Development (IMD), which evaluates countries based on their efficiency in managing resources to ensure prosperity for their people, currently covering 63 of the most competitive countries.

The Kingdom has reaped the benefits of operational, productive, and service excellence across its various sectors that collectively drive its development. This was highlighted in the World Competitiveness Yearbook issued by the Global Competitiveness Center for the year 2020.

The report showcased the effectiveness of the Kingdom’s developmental programs and initiatives, indicating that the Kingdom was the only country in the Middle East and Gulf region to achieve exceptional progress. It was also ranked eighth among G20 countries.

The report further revealed positive performance across the Kingdom’s developmental sectors, showing that the Kingdom improved in three out of four main pillars measured by the report. In the economic performance pillar, it advanced from thirtieth to twentieth place, in the business efficiency pillar from twenty-fifth to nineteenth, and in the infrastructure pillar from thirty-eighth to thirty-sixth.

In alignment with the programs of Saudi Vision 2030 and the initiatives they encompass, the Kingdom has made significant strides in various global rankings. In 2023, the Kingdom secured second place globally in the cybersecurity index, according to the World Competitiveness Yearbook for 2023.

In 2020, the Kingdom achieved second place worldwide in the continuous improvement pillar of the cybersecurity index for companies, out of sixty-three of the most competitive countries. The Kingdom had earlier made notable progress in the Global Cybersecurity Index for 2018, conducted by the International Telecommunication Union (ITU), where it leaped to thirteenth place globally and first in the Arab region, compared to forty-sixth place in 2016.

Additionally, the Kingdom excelled in international security indicators in 2020, where it led the G20 countries and surpassed the five permanent members of the United Nations Security Council in five security-related indicators from the 2019 Global Competitiveness Report and the 2020 Sustainable Development Report.

These positive results also extended to the security sector, where the Kingdom ranked first in the index of citizens’ trust in police services and first in the index of controlling organized crime, outperforming permanent Security Council members such as France and the United States, and securing second place in the same index among G20 nations.

The Kingdom continues its efforts to enhance its competitive capabilities across all sectors to achieve comprehensive and sustainable development. As part of this, the commercial system works diligently to improve and develop the business and investment environment, simplifying the process of starting a business. This is done through integrative partnerships with more than fifty government entities and active collaboration with the private sector to enhance the Kingdom's global competitiveness and position it among the top ten most competitive countries in the world by 2030.

As a result of automating corporate services, the Kingdom achieved third place globally in the Corporate Digital Transformation Index, as reported in the 2023 World Competitiveness Yearbook by 'IMD.' The Kingdom also made significant gains in several sub-indicators related to the commercial sector, jumping ten places in the Capital Cost Index (which encourages business development) to secure third place worldwide. It made a substantial leap in the Trade Exchange Index (the value of exports to imports), rising to fourth place globally from fifty-fourth in 2022. In the Consumer Price Index (average annual rate of inflation), the Kingdom advanced to third place worldwide, marking a significant improvement from thirty-third in 2022. Additionally, in the Legislation Support for Company Formation Index, the Kingdom moved up nine ranks to seventh place globally, while it jumped twelve positions in the Large Companies Index (characterized by high efficiency) to reach tenth place globally.

Thanks to legal reforms aimed at attracting investments and easing business practices, the Kingdom recorded a remarkable leap in the Ease of Doing Business Report 2020 issued by the World Bank Group, rising 103 places, from 141 in 2019 to thirty-eighth in 2020. The Kingdom also ranked first globally for business environment reforms among 190 countries and was recognized as the best country globally in supporting and empowering entrepreneurship in the 2019 Global Entrepreneurship Monitor report.

The Kingdom continues to progress in many indicators, being the only country in the Middle East to advance in the 2020 World Competitiveness Yearbook, reaching twenty-fourth place among the sixty-three most competitive countries. In the field of e-commerce, the Kingdom ranked among the top ten countries in the UN E-Commerce Index.

The Kingdom's global competitiveness has extended to the digital and technology sectors as well. In 2023, the Kingdom secured first place globally in the Government AI Strategy Index, one of the global AI ranking indicators issued by "Tortoise Intelligence", which measures over sixty countries worldwide. Germany ranked second and China third in this index.

In 2020, the Kingdom topped the G20 Digital Competitiveness list for the period from 2018 to 2020, ranking first. The report measured the achievements and steps taken by the Kingdom from 2018 to 2020. It attributed the Kingdom's significant leap to the 2023 Communications and Information Technology Sector Strategy, derived from Saudi Vision 2030.

The Kingdom's communications and information technology sector has achieved an advanced competitive rank globally, placing fifth among 140 in the Mobile Internet Speed Index. The Kingdom advanced seven places in 2021 compared to 2020. It also progressed in the E-Government Development Index, climbing nine places in 2020 compared to its ranking in 2018, reaching forty-third place globally among 193 countries.

Additionally, the Kingdom continued to develop its digital institutions and implement its digital transformation plans, earning a distinguished classification in the Telecommunications Infrastructure Index, where it jumped forty places to rank twenty-seventh globally among 193 countries. Its position in the Network Readiness Index rose by four places compared to 2020. Furthermore, Riyadh City ranked third globally in the analysis of "5G" network speeds, according to the "OpenSignal" report for 2021. The Kingdom also ranked sixth globally in 5G data download speeds.

The Global Digital Competitiveness Index in 2020 saw a notable advancement in the development of digital technologies in the Kingdom, with the country rising five places to reach the thirty-fourth position among sixty-three countries. This index is crucial for exploring digital technologies as a key driver of economic transformation in business, government, and society.

In 2021, the Kingdom was ranked second globally in the Digital Competitiveness Report published by the European Competitiveness Center among G20 countries for 2021. The Kingdom advanced twenty places in the overall index compared to 2020, achieving first place in the digital ecosystem axis, leading G20 countries, and third place in the digital capabilities axis.

The Kingdom also made progress in education and knowledge indicators in 2022, jumping thirteen places globally in the Knowledge Index compared to 2021. It improved in related sub-indicators, rising ten places in the education and training index, five places in the regulatory framework index, four places in the talent availability index, and six places in the scientific focus index.

Additionally, the Kingdom's ranking improved in education-related indicators for 2022, advancing ten places in the digital and technical skills index, nine places in the higher education achievement index, and six places in the high-tech patent grants index.

The development of the competitive performance extended to the financial services sector, where the Kingdom achieved advanced positions in several global financial market competitiveness indicators.

According to the report, the Kingdom made progress in six indicators, including the stock market capitalization index (as a percentage of GDP), where it jumped from twenty-sixth place in 2019 to second globally in 2020. Additionally, in the ease of access to financial markets index, the Kingdom rose from thirty-third place to twentieth, and in the initial public offerings index, it advanced from thirty-sixth to fourth place.

In 2022, the Kingdom continued to secure top positions in financial market-related indicators, ranking first in both the stock market capitalization index and the shareholders' rights index. The Kingdom also secured second place in the financial markets index and venture capital index, while achieving third place in the initial public offerings index and boards of directors index within the G20. As a result, the Kingdom ranked among the top three in six out of twelve financial market-related indicators at the G20 level.