Dubai and Abu Dhabi have simultaneously broken into the top five of the IMD 2025 Smart City Index for the first time in the index's history — a milestone that underscores the UAE's accelerating push to build world-class urban environments. Dubai jumped from 12th to 4th place; Abu Dhabi rose from 10th to 5th.
IMD 2025 Smart City Index: UAE's Historic Leap
The IMD Smart City Index is published annually by the World Competitiveness Center (WCC) at IMD Business School. The 2025 edition surveyed residents of 146 cities worldwide, evaluating four main areas: sustainability, livability, governance, infrastructure, and digital integration.
Zurich held the top spot for the sixth consecutive year, followed by Oslo in second and Geneva in third. Dubai at 4th and Abu Dhabi at 5th round out the top five — the first time both UAE cities have appeared there together.
How Dubai and Abu Dhabi Scored
Healthcare services and green space accessibility were standout contributors to both cities' rankings. Dubai scored 82.8/100 for healthcare and 83.4/100 for green areas. Abu Dhabi posted slightly higher marks — 84.7/100 for healthcare and 83.8/100 for green areas — reflecting the UAE's sustained investment in urban quality of life.
Abu Dhabi's rise was also driven by free public Wi-Fi coverage, strong public transportation, and effective traffic management, according to the WCC assessment.
What Makes a Smart City in 2025
WCC officials noted that the cities leading the index succeed not because technology is their end goal, but because they use it to enhance governance, sustainability, and inclusivity. Cities that deploy digital tools in service of residents — rather than as showpiece infrastructure — consistently outperform those that prioritise technology for its own sake.
Housing Affordability: A Global Urban Crisis
One of the most striking findings in the 2025 index is the widening housing affordability gap. Between 80% and 90% of surveyed residents in Dubai, Dublin, and Vancouver identified housing costs as their primary concern. The WCC report points to three converging factors: rapid urbanisation, rising commodity prices, and persistent global inflation. Import tariffs — particularly on steel and lumber — are expected to further push up construction costs in the coming years.
Six New Cities Join the Index
The 2025 edition welcomed six new cities to its rankings: AlUla (Saudi Arabia), Astana (Kazakhstan), Caracas (Venezuela), Kuwait City, Manama (Bahrain), and San Juan (Puerto Rico). Their inclusion reflects the index's growing reach across emerging urban centres in the Middle East, Central Asia, and the Americas.
Cities as Economic Engines
Speaking at the World Economic Forum, WCC Director Arturo Bris argued that cities now play a larger role than countries in driving global economic development. As the world's political and economic landscape fragments, Bris predicted that urban centres — not nation-states — will emerge as the primary engines of growth.
For Dubai and Abu Dhabi, a top-five finish in the IMD 2025 Smart City Index is both a recognition of progress already made and a signal to investors, residents, and policymakers worldwide that the UAE's urban ambitions are delivering measurable results.
