Top 7 factors behind Dubai’s rise to the 4th spot in the IMD Smart City Index 2025

• Dubai ranks 4th globally in the IMD Smart City Index 2025, having improved in 16 of 20 technology indicators.
• Its high satisfaction scores in healthcare, transportation, and online business tools highlight a strong tech environment for companies.
  
• This progress improves the avenue and playing field for entrepreneurs looking to set up a business in Dubai.

Dubai has climbed eight places to rank fourth (4th) globally in the IMD Smart City Index 2025, becoming the top smart city in the GCC, Arab world, and Asia. The Index, released by the IMD World Competitiveness Centre, measures how cities use advanced technologies to improve quality of life. This milestone recognises Dubai’s strong push for digital transformation and its impact on key industries, inevitably boosting the ease of doing business in the city for entrepreneurs.

To understand Dubai’s rise in the global smart city rankings, here are the key levers behind its success:

1. Boosting smart mobility for urban efficiency

Dubai’s transport system stood out in the Index, with residents reporting high satisfaction across various indicators. The city’s smart mobility solutions, including car-sharing apps (69.7), real-time traffic updates (81.2), and digital parking systems, have significantly reduced congestion and travel times. Bicycle-sharing options (70.0) and integrated online ticketing (80.8) have also streamlined public transport access.

This integrated mobility network reduces traffic congestion and delivery cycles, enhancing the overall resident experience and contributing to a more efficient operating environment. These are great advantages that founders and logistics-driven businesses need to take note of when setting up a business in Dubai.

2. AI adoption in public services and smart healthcare

Dubai has strategically embraced AI and data-driven technologies to optimise everything from healthcare access to government services. Such efforts have led to:

• High satisfaction with medical appointments booked online (84.5) and free public Wi-Fi (78.3)
• A robust CCTV network (89.3) enhances safety, while platforms for reporting issues (78.0) ensure service delivery is responsive and fast
• Real-time air quality monitoring apps also support resident well-being (60.5)

This digital-first infrastructure safeguards operational continuity and enhances liveability. 

3. Transparent and responsive governance

Dubai’s governance scores reflect a high degree of digital transparency and citizen engagement. In fact, residents report strong access to information on local government decisions (86.8) and express confidence in low levels of corruption (67.3). Technology platforms, meanwhile, enhance this trust by enabling participation in city proposals (75.0) and offering efficient online processing for identification and documentation (85.4).

This level of institutional clarity and responsiveness significantly reduces the time and cost associated with regulatory compliance, which homegrown and foreign entrepreneurs must understand when setting up a business in Dubai.

4. A culture of innovation and continuous learning

Dubai also excels in preparing its population with future-ready skills. Residents particularly express high satisfaction with school quality (75.7), lifelong learning opportunities (70.1), and minority inclusion (80.6). In addition, students’ IT skills are well integrated into school curricula (76.8), and access to job listings (77.5) supports career mobility. This proactive approach to skills development helps build a diverse, tech-savvy talent pool. This is essential for ecosystem growth, long-term business scalability, and strengthening the case for setting up a business in Dubai in a globalised economy.

5. Digital infrastructure that powers enterprise

Dubai’s digital infrastructure excels across key areas, with online tools making it easier to start a business (79.5) and reliable, high-speed internet (86.5) enabling seamless transactions. The city’s online public services additionally reduce friction in everyday operations, from licensing to ID verification. The result is faster setup, lower operational costs, and a more investor-ready field.

6. Smart services that attract global talent

The quality of life significantly impacts business competitiveness:

• Accessible green spaces (83.4) and cultural venues (86.5) enhance the urban experience
• Digital services, from online ticketing (88.3) to apps for recycling and maintenance, contribute to a well-functioning urban environment

These considerably soft indicators are crucial for attracting and retaining talent, which is essential for companies establishing regional hubs or expanding globally from Dubai.

7. Measurable and adaptive performance

Dubai improved in 16 out of 20 technology indicators and across all four governance pillars. This demonstrates their commitment to measurement, benchmarking, and course correction, underlined by a governance culture that prioritises agility and results. Such strategic adaptability signals to global investors that Dubai is proactively building a future-ready economy.

The bottom line

Dubai’s rise to the fourth (4th) spot in the IMD Smart City Index 2025 is undeniably due to its ongoing development and adoption of advanced technologies to further improve urban mobility, governance, infrastructure, and innovation. Similarly, this progress is tangible and backed by data across the key areas that are most important to investors, founders, and international executives. With a focus on digital innovation and business-friendly incentives, Dubai has made itself a launchpad for global ventures that are built to scale and last.

This article is part of a series exploring how the world’s smartest city promotes global growth in governance, mobility, consumer services, and business enablement. Stay tuned for our next article for more insights.