Abu Dhabi and Dubai among 'contenders' reshaping global economic landscape

Abu Dhabi and Dubai have been named among 28 global "contender" cities reshaping the economic landscape in a new index from Oxford Economics, with Dubai climbing nine places to 42nd overall and Abu Dhabi slipping 11 places to 84th. Dubai finished second globally for human capital and 53rd on economics, while Abu Dhabi placed sixth in human capital but 110th in economics. Riyadh also made a dramatic move, rising 47 places to 50th, finishing fourth in human capital and 18th in economics.

“This is indicative of the circular, self-reinforcing nature of success ... a strong economy drives quality-of-life improvements, which in turn attracts skilled talent. Once a city enters this growth cycle, it takes significant shocks to displace it,” said Liam Sides, director of city services and lead author of the report.

The Oxford Economics Global Cities Index assessed cities across five metrics: economics, human capital, quality of life, environment and governance. Analysts identified Abu Dhabi, Dubai and Riyadh as “contenders” — dynamic markets that are forging independent growth paths and increasingly drawing high-skilled workers and innovative firms.

• Dubai: up nine places to 42nd overall; 2nd in human capital, 53rd in economics. The report cites immigration reforms such as the Golden Visa and retirement visa programmes as factors encouraging longer-term stays by higher-income individuals.
• Abu Dhabi: down 11 places to 84th overall; 6th in human capital, 110th in economics. The city is described as being “in full economic diversification and transformation mode,” with wider Gulf growth linked to its economic performance.
• Riyadh: up 47 places to 50th overall; 4th in human capital, 18th in economics. Oxford Economics attributes the surge to targeted investment, policymaking and resilience to regional disruption.

Analysts emphasised that cities that perform strongly in one category often do well in others, creating self-reinforcing cycles of growth. “The three Gulf cities have all burst onto the global scene and are increasingly attracting the world’s highest-skilled workers and most innovative businesses,” the report said. It also warned that the ongoing conflict in the region — specifically tensions stemming from Iran — poses a risk to the model by undermining the region’s ability to attract talent and capital.

Despite geopolitical pressures, recent economic data cited in the report point to recovery signals: business activity in the UAE's non-oil private sector in August improved at the fastest pace since December 2024, according to the seasonally adjusted S&P Global UAE Purchasing Managers' Index. Saudi Arabia’s non-oil private sector also recorded its strongest expansion in six months in August.

The report places these Gulf entrants alongside other global challengers from Africa and the Asia-Pacific — including Accra, Cairo, Bengaluru and Shenzhen — and contrasts them with established global leaders. New York retained the top overall position, followed by London and Paris, while cities such as Seattle, San Francisco and Tokyo complete a US- and international-dominated top ten.

Looking ahead, Oxford Economics suggests that continued diversification, targeted investment and policy reforms will determine whether Abu Dhabi, Dubai and Riyadh solidify their new standings. The firm noted that while regional tensions can dent momentum, “a combination of deep financial buffers and strong long-term fundamentals means the region’s major cities will continue to drive strong growth.”