UAE Cities Outshine Global Rivals in IMD Smart City Rankings 2025

Dubai and Abu Dhabi have reached their best-ever positions in the 2025 IMD Smart City Index. The UAE cities ranked 4th and 5th among 146 cities worldwide. This achievement marks their first entry into the top 10, with Dubai moving up from 12th place and Abu Dhabi from 10th position.

The cities share common challenges with other urban centers around the world. The IMD Smart City Index shows that most residents in major cities, including Dubai, worry about housing costs. Zurich leads the rankings, followed by Oslo and Geneva. The index looks at how cities balance their economic strength, technology use, environmental focus, and inclusive growth.

The study gathered responses from 39 participants from different social backgrounds. A key finding shows that people struggle to find homes with rent below 30% of their monthly income. The UAE cities continue to push forward with their smart city projects to make life better for their residents, despite these housing challenges.

UAE Cities Leapfrog Global Competitors in Smart City Rankings

_{Image Source: Social Kandura}

The 2025 IMD Smart City Index reveals a major change in global urban rankings. Middle Eastern cities have achieved remarkable success. Dubai and Abu Dhabi have both made it to the top five smart cities worldwide for the first time since the index began. This breakthrough marks a new chapter in the smart city world and challenges European cities’ traditional dominance.

Dubai Jumps from 12th to 4th Place in One Year

Dubai has made an impressive leap from 12th to 4th place, marking one of the biggest improvements in the 2025 Smart City Index. The emirate’s focus on advanced technology and citizen-friendly services drove this remarkable rise. Dubai scored 82.8 out of 100 for medical services and 83.4 for green spaces, showing its success in creating a livable, tech-savvy urban environment.

The city now ranks first globally for reputation, up from seventh place in 2023. Dubai has also improved its standing for local and remote work opportunities, moving from 24th to 4th place worldwide. These achievements match the emirate’s goal to become a global hub for talent and innovation.

Dubai’s safety metrics stand out with an 88.5% score, making it one of the world’s safest cities. Strong ratings in medical services (82.2%) and public transport (79.7%) show Dubai’s well-rounded approach to development. These high scores helped the city climb quickly in the rankings.

A decade of careful planning and smart investments has made Dubai a digital pioneer globally, not just in the Middle East. Dubai Plan 2030 and other forward-thinking programs have helped the city become more competitive across many areas.

Abu Dhabi Climbs to 5th Position from Previous 10th Rank

Abu Dhabi has also shown impressive growth, moving from 10th to 5th place globally. The UAE capital excels in safety (87.4%), culture and leisure (88.7%), and green spaces (84.7%). These numbers show Abu Dhabi’s balanced growth strategy that puts quality of life first while embracing technology.

Public transport (83.8%) and medical services (86.3%) in the city have improved through smart solutions. Abu Dhabi remains the smartest city in the Middle East and North Africa, a title it has kept for several years.

Abu Dhabi has stayed in the top tier since the index started in 2019. The UAE capital now stands with global leaders like Zurich, Oslo, Singapore, Beijing, and Seoul. This achievement means more because Abu Dhabi’s smart city programs are newer than many European cities.

The city’s digital growth got a boost when Abu Dhabi partnered with Shenzhen in February. This twin city agreement lets them share knowledge about infrastructure, city planning, green mobility, transport, technology, autonomous solutions, sustainability, and urban development. These mutually beneficial alliances have sped up Abu Dhabi’s smart city development.

European Cities Still Dominate Top Three Spots

European cities lead the global rankings despite UAE cities’ progress. Zurich keeps its position as the world’s smartest city for five years running. Oslo takes second place, while Geneva moved up to third from sixth place last year.

European cities stay on top for good reasons. They have well-developed infrastructure, efficient governance, and strong digital systems built over time. Paris stands out with Europe’s highest 5G coverage (99.9%) and second-highest number of AI companies (532).

The IMD Smart City Index, now in its sixth year, looks at how cities balance jobs, housing, environment, and inclusiveness. Top cities know how to give residents everything they need while avoiding problems like congestion and pollution.

William Milner from the World Competitiveness Center says, “The top three cities are able to provide all the amenities citizens require for a good quality of life while not suffering from diseconomies of scale such as congestion caused by public transport, and pollution”. Smaller, well-run cities often offer better living conditions.

Dubai and Abu Dhabi’s rise marks a big change in the smart city world. These Middle Eastern cities have reached the top five for the first time. Their success shows the region’s growing influence in urban innovation and technology.

The 2025 IMD Smart City Index looked at 141 cities worldwide. Dubai and Abu Dhabi’s success reflects more investment in urban innovation across the Middle East. Saudi Arabia has also improved, with five cities in the 2024 index—Riyadh (24th), Mecca (52nd), Jeddah (55th), Medina (74th), and Al Khobar (99th).

WCC Chief Economist Christos Cabolis points out that successful smart cities focus on livability, sustainability, and governance. They use technology to help residents and solve local problems rather than as an end goal. Both Dubai and Abu Dhabi have followed this approach, helping them climb the rankings quickly.

UAE cities’ success extends beyond the Smart City Index. Brand Finance’s Global City Index 2024 ranked Dubai first in the Middle East and Africa, and fifth globally with 86 out of 100. These consistent high rankings across different measures show real progress in these cities.

How Dubai Transforms Digital Infrastructure While Housing Costs Soar

_{Image Source: UAE Stories}

Dubai started its digital makeover more than 20 years ago. The city led the way with its e-government initiative in 2000. The Smart Government initiative followed in 2013, and a detailed digital program eliminated paper transactions by 2021. This tech revolution keeps reshaping Dubai’s urban landscape today, even as the emirate deals with climbing property prices and housing costs.

Smart City Dubai Initiatives Boost Public Services

The Digital Dubai Office has launched over 130 initiatives with government and private sector partners. These programs are the foundations of Dubai’s change into a connected, efficient metropolis. The city’s digital toolkit has the Dubai Data Initiative, Dubai Blockchain Strategy, Happiness Agenda, Dubai AI Roadmap, and Dubai Paperless Strategy. Each program tackles specific parts of urban development and governance.

These initiatives have yielded impressive results. Dubai’s government services now show a 99.5% digitization rate, and paperless government goals reached 100%. Digital transactions make up 87% of all government service transactions. Government teams have created more than 120 smartphone apps to make citizen interactions easier. Government bodies have achieved over 80% compliance with cybersecurity indicators and 100% compliance with the Dubai Data Law.

Dubai’s digital framework rests on seven strategic pillars:

1. Digital City
2. Data and Statistics
3. Cybersecurity
4. Digital Competitiveness
5. Digital Economy
6. Digital Talent
7. Digital Infrastructure

This detailed approach helps Dubai make big strides in urban living. The city identified 104 AI use cases. Right now, 43 of these are running, with 13 government bodies working across 10 industry sectors. This AI focus lines up with Dubai’s goal to become earth’s happiest city through tech innovation.

The Dubai Digital Authority uses biometric happiness detection systems and environmental wellbeing sensors. These tools get real-time data about public mood and environmental conditions. The city also runs a huge network of 23,600+ free Wi-Fi hotspots in public spaces and facilities. This setup ensures people stay connected throughout the city.

The ‘Dubai Transaction Index’ measures government efficiency in real-time. It gives leaders a clear picture of service performance across government bodies. Sheik Hamdan bin Mohammed’s Digital Dubai Cloud project marks a big step toward creating a unified, smart ecosystem. Digital Dubai worked with government agencies and industry leaders like Moro Hub and Microsoft. This team effort gives government bodies access to cloud services for storage, computing, and networking.

Dubai’s smart city framework focuses on four main areas: easy daily life services, smart use of city resources, risk prevention and protection of people and data, and custom experiences for life and business. These areas support three main goals: happy customers, economic growth, and strong resources and infrastructure.

The Dubai Now app shows this citizen-first approach well. It offers more than 170 public and commercial services from over 35 organizations. Residents save time and avoid hassles, which makes urban life better despite rising housing costs.

Real Estate Prices Keep Rising Despite Smart Solutions

Dubai’s digital infrastructure grows fast, but property prices keep climbing too. Many expatriates and tourists keep moving in, and major building projects continue. This makes Dubai one of the world’s most active real estate markets. Dubai saw 18.7 million overnight visitors in 2024, up 9% from last year. This surge drives up demand for homes and business spaces.

Business real estate shows strong growth. Companies want more Grade A office space in 2024. Premium buildings like ICD Brookfield in Dubai International Financial Center stay 95% full. Global financial and corporate firms keep showing interest. Dubai’s business-friendly rules and growing economy attract companies, despite competition from Abu Dhabi and Riyadh.

Smart tech in real estate creates an odd situation. IoT, AI, and blockchain help set Dubai’s property values. Smart infrastructure, including self-driving transport and AI-guided city planning, makes properties worth more. But these tech improvements push prices higher in an already expensive market.

New buildings in Dubai show a green trend. In 2024, 25% of new developments got green building certification. This matches Dubai’s Clean Energy Strategy 2050, which aims for 75% renewable energy. Investors like this focus on sustainability. It adds long-term value and meets global ESG standards.

Buildings with smart features, green certifications, and good connectivity cost more. This adds pressure to housing costs. As Dubai finishes more smart city projects, global investors pour in more money. This pushes prices up across the market.

Housing costs now block the city’s goals for sustainable growth and happiness, plus its smart city vision. Most Dubai expats work in lower-paying jobs – 69% don’t have university degrees. Over 33% rent homes in cheaper emirates and drive to Dubai. This creates social and environmental issues.

This gap between tech growth and housing costs poses a big challenge. Dubai leads in urban innovation, but private companies lack tools and interest to build affordable homes. Finding land in good locations remains crucial to fix the cost problem.

Dubai might need to change its top-down planning approach. A masterplan or long-term land use strategy could help with affordable housing, like Singapore’s method. The city should also rethink its supply-first approach. Right now, it attracts international buyers who often speculate instead of meeting local needs.

New zoning rules and benefits for small builders could help private companies close Dubai’s affordability gap. Smart cities should also try citizen-led solutions. People could fund and develop projects themselves instead of relying on profit-focused developers.

Abu Dhabi City Balances Technology and Livability Amid Global Housing Crisis

_{Image Source: Aletihad Newspaper}

Abu Dhabi has climbed to fifth place in the 2025 IMD Smart City Index. This achievement shows its focus on balancing tech advances with quality of life initiatives. The capital city has added many digital solutions to make government services smoother, though housing costs remain a challenge nationwide.

Digital Platforms Revolutionize Resident Services

The TAMM platform stands at the heart of Abu Dhabi’s smart city transformation as a unified digital gateway for government services. The system got an upgrade to TAMM 3.0 and now provides over 800 uninterrupted services through a single app and portal. It creates personalized experiences for citizens, residents, visitors, and investors. TAMM’s AI Assistant speaks both Arabic and English with advanced conversational skills, offering round-the-clock support and analyzing user behavior to customize recommendations.

“Abu Dhabi Connect” marks another tech milestone that lets government entities share documents digitally and turn physical paperwork into digital data. The system covers more than 50 document types across 24 government entities. Users can complete their tasks without bringing physical documents. The Abu Dhabi Digital Authority reports yearly savings of:

• More than 714 million hours for customers
• 737,000 working hours for government entities
• Approximately 31 million archived documents

The city has rolled out an innovative “Once only” policy. Users no longer need to submit supporting documents repeatedly when they ask for services. The Abu Dhabi Connect Platform saves and shares this data with relevant entities, which makes procedures smoother and cuts down on paperwork.

Abu Dhabi’s “TAMM cares” initiative helps vulnerable populations and remote communities through mobile solutions like “TAMM Van” and “TAMM Mobile Service Center”. These services bring government functions to people of determination, senior citizens, and residents in remote areas. They can complete their transactions without traveling to service centers.

The Department of Municipalities and Transport works with NUS Cities to push Abu Dhabi’s smart urban development forward. They focus on climate-resilient design, livability research, mobility solutions, and evidence-based governance by using expertise in sustainable infrastructure and advanced data analytics.

Living Costs in Abu Dhabi Remain Challenge for Middle-Income Residents

Abu Dhabi shines in tech integration, but housing costs continue to pose a major challenge. A single person needs AED 15,000 to AED 20,000 monthly at minimum to live comfortably in the capital. This covers monthly rent for a good apartment (AED 5,000-8,000), utilities, groceries, transportation, and entertainment.

Families need more money – typically AED 25,000 to AED 35,000 monthly. Housing takes the biggest chunk, with a three-bedroom property in nice areas costing AED 10,000 to AED 18,000 monthly. Education adds another big expense. International schools charge between AED 20,000 and AED 50,000 yearly per child. Top international schools might charge up to AED 100,000 per year.

Healthcare costs add to the financial picture. A doctor’s visit without insurance costs between AED 200 and AED 400. Complete health insurance policies cost AED 2,000 to AED 6,000 yearly for one person. Monthly groceries run from AED 600 to AED 1,200 for singles, while families might spend AED 2,000 to AED 4,000 based on size and food priorities.

A 2025 study shows that a family of four needs about AED 12,248.5 monthly without rent, while a single person needs AED 3,495. Abu Dhabi costs 46.7% less than New York (excluding rent), and rent averages 61.8% lower than New York.

“Apartment prices are skyrocketing. Mine has risen by 33% in the last 2 years even though the law states landlords can only raise it by 5% each year,” one resident pointed out. Many tenants report getting asked for roughly 25% increases at renewal time.

Green Spaces and Healthcare Score Above 80 Points

Abu Dhabi has made great progress in boosting environmental sustainability and quality of life despite these economic hurdles. The city scored well in the IMD Smart City Index across several areas, including green spaces (83.8 out of 100), healthcare services (84.7), and public transportation (83.8).

Abu Dhabi City Municipality leads a major afforestation campaign to expand green coverage across the emirate. This project aims to add more trees, improve air quality, and strengthen the city’s commitment to protecting the environment. The campaign helps preserve biodiversity and makes life better for residents.

Communities play a big role in these green projects. The Municipality gives out hundreds of tree and plant saplings to residents, students, and campaign partners. They also run educational workshops and field visits to encourage environmental care. Children take part actively by planting trees and learning about the benefits of more green spaces.

Yas Island shows Abu Dhabi’s dedication to sustainable development. Its central green spine features parks, lakes, and biodomes that run on clean renewable energy. This approach to city planning has led to high resident satisfaction with cultural offerings, recycling programs, sanitation services, and park access.

The Smart City Index also gives Abu Dhabi’s healthcare system high marks. Residents like how easy it is to access medical services, including booking appointments online. This digital approach to healthcare fits with the emirate’s bigger plan of using technology to improve daily life rather than just adding tech for its own sake.

Safety Technologies Propel UAE Cities Among Top Safest Cities in the World

_{Image Source: Tektronix Technologies}

Safety technologies play a key role in pushing UAE cities to the top of global safety rankings. Abu Dhabi stands as the world’s safest city for 2025. The emirate has held this position for nine straight years since 2017. The city’s groundbreaking security initiatives have secured its place as a safe haven for citizens, residents, and visitors.

CCTV Systems Contribute to Greater Security Perception

Dubai and Abu Dhabi’s advanced CCTV networks have substantially improved how safe residents and visitors feel. These detailed surveillance systems deter potential intruders and let authorities monitor and react fast to incidents. CCTV installation proves to be one of the best ways to protect homes and businesses throughout the emirates.

Modern CCTV infrastructure in the UAE now has:

• Digital and network video recordings with video analytics
• People counting and access control capabilities
• Automatic number plate recognition
• Off-site recording storage and retrieval

Streamlined emergency call centers help Dubai’s firefighters and police reach incidents faster than ever. Dubai Police uses AI-powered facial recognition and predictive analytics to keep crime rates low and ensure public safety. They even deployed the world’s first AI-powered “Robocop” that helps with security patrols and public interaction.

Public Safety Scores Outperform Other Top 10 Smart Cities

Abu Dhabi leads the world with an impressive 88.2 points on the Safety Index. The city’s Crime Index sits at just 11.8 points, the lowest globally. These remarkable results placed Abu Dhabi at the top among 382 global cities in 2025.

Dubai holds the fifth spot globally for safety. Both cities show their steadfast dedication to creating secure environments. The UAE ranks as the second safest country worldwide in 2025 with 84.5 Safety Index points. This achievement builds on 2020’s unique record when all but one of these UAE cities—Abu Dhabi, Dubai, and Sharjah—made it to the world’s top 10 safest cities list.

Digital Security Measures Protect Resident Data

The UAE has built resilient digital security frameworks to protect residents’ data and online activities. The UAE Cybersecurity Council created three new policies in 2024. These policies cover ‘cloud computing and data security,’ ‘Internet of Things security,’ and ‘cybersecurity operations centers’.

Cyber threats evolve faster every day. The Telecommunications and Digital Government Regulatory Authority developed the ‘UAE Information Assurance Regulation’. This regulation raises protection standards for information assets across UAE entities. It aims to build a trusted digital environment throughout the country.

The UAE Pass app and Emirates ID system handle individual digital security. The UAE Pass app serves as the first national digital identity and signature solution. Users can identify themselves to government service providers in all emirates through their smartphones. They can also sign documents digitally with high security.

The UAE’s Computer Emergency Response Team (aeCERT) works to improve information security standards and protect IT infrastructure from risks and violations. The team helps create a safer cyberspace and shares updates about threats, vulnerabilities, and cybersecurity incidents.

Middle Eastern Cities Challenge Western Smart City Dominance

_{Image Source: Economy Middle East}

The Middle East’s urban landscape is changing rapidly. Dubai and Abu Dhabi led the way, and now several other cities have climbed into global smart city rankings to challenge Western urban centers.

Saudi Arabia’s AlUla Debuts on Smart City Index

AlUla has earned its place in the IMD World Smart Cities Index 2025 among five other Saudi cities: Makkah, Madinah, Riyadh, Jeddah, and Al Khobar. The city ranks 113rd in its first appearance on the index. Saudi Arabia’s Vision 2030 drives this achievement through groundbreaking projects that the Saudi Data and Artificial Intelligence Authority leads.

AlUla stands out as a smart heritage, cultural, and tourism destination. The city uses modern AI-powered technologies to protect its archeological sites. This strategy matches the region’s broader goals to create unique smart city identities.

Kuwait City and Manama Join Global Rankings

Kuwait City and Manama became new additions to the Smart City Index this year, which now measures 146 cities. Manama reached the 37th spot with a “BB” rating, while Kuwait City secured the 91st position. Both cities had already proven their worth in the Innovation Cities Index. Kuwait City ranked 14th regionally, earned a “NODE” classification, and scored 38 points.

These cities show how Middle Eastern nations have dedicated themselves to smart urban growth. Each country takes a unique approach based on its specific needs and available resources.

Regional Investment in Urban Technology Accelerates

The UAE and Saudi Arabia show their commitment through massive investments. They plan to spend AED 183.60 billion on smart city projects through 2025. Saudi Arabia’s smart cities market started at AED 13.22 billion in 2019 and should reach AED 54.51 billion by 2027.

NEOM, the region’s showcase development, represents an investment of AED 1835.97 billion and has:

• ‘The Line’ – a 170-kilometer linear city for nine million people
• ‘Oxagon’ – an advanced port city
• ‘Trojena’ – a 60-square-kilometer ski resort
• ‘Sindalah’ – an island resort with an 86-berth marina

The UAE leads the region in climate technology. Global investments grew by 138% between 2023-2024. AI-driven climate-tech projects in the Middle East drew AED 173.68 million in global investments in 2024. These developments support the Gulf’s goal to build a trillion-dollar digital economy by 2025.

Dubai and Abu Dhabi have risen remarkably to claim spots in the top five of the 2025 IMD Smart City Index. This achievement marks a fundamental change in global urban development. These UAE cities show exceptional growth in safety, digital services, and resilient infrastructure. While Zurich, Oslo, and Geneva hold the top three spots, UAE cities now challenge Europe’s traditional dominance in smart city rankings.

Housing remains expensive for 80-90% of residents. Yet both cities push forward with strategic investments and complete digital transformation programs. Dubai has achieved paperless government status, while Abu Dhabi’s TAMM platform represents their dedication to citizen-focused services. Advanced safety technologies make these cities some of the world’s safest urban spaces. Abu Dhabi stands proudly as the world’s safest city for nine straight years.

UAE cities’ success drives development across the Middle East. Cities like AlUla, Kuwait City, and Manama now speed up their smart city projects. The region’s investment numbers tell the story – UAE and Saudi Arabia have set aside AED 183.60 billion for smart city projects through 2025.

Middle Eastern cities have emerged as strong competitors in global urban breakthroughs. They know how to balance tech advances with better living standards, even as they tackle housing issues. Their approach sets new standards for smart city development worldwide.