UAE Leads Arab Digital Economy Index as Saudi Arabia Ranks Second

The UAE and Saudi Arabia have emerged as the leading digital economies in the Arab region, ranking first and second respectively in the 2026 Arab Digital Economy Index.

The UAE recorded a score of 76.66 points, while Saudi Arabia followed with 73.64 points. Bahrain ranked third with 66.75 points, followed by Qatar at 66.66 and Oman at 65.98.

The rankings come as Arab countries expand investment in digital infrastructure, electronic payments, government services and cybersecurity, with significant differences remaining between countries in innovation and research capabilities.

Saudi Arabia has continued to accelerate its digital transformation, particularly in retail payments. The Saudi Central Bank said in April that electronic payments accounted for 85 per cent of total retail payments in 2025, compared with 79 per cent in 2024.

The UAE is also seeing rapid expansion in digital payments and related infrastructure. The market is projected to increase from $21.3 billion in 2025 to $39.2 billion by 2033, representing a compound annual growth rate of 7.9 per cent, according to Metastat Insights.

Ali Mohammed Al-Khouri, chairman of the board of directors of the Arab Federation for Digital Economy and adviser to the Council of Arab Economic Unity, said the UAE’s position reflected years of investment in digital infrastructure, government services, cybersecurity, artificial intelligence and the knowledge economy.

According to state news agency WAM, Al-Khouri said these efforts had helped establish the UAE as a model for developing an innovation-focused economy capable of turning technological advances into higher productivity and economic value.

Wider regional progress

The index placed Jordan, Kuwait, Morocco, Egypt, Tunisia and Algeria in a second group, representing countries with medium levels of digital performance.

A third group consists of countries that are still developing their digital foundations. It includes Lebanon, Mauritania, Iraq, Djibouti, Comoros and Libya, along with Palestine, Syria, Sudan, Somalia and Yemen.

The findings showed progress across the Arab world in areas including digital infrastructure, government services and cybersecurity. However, differences remain in innovation, the data economy, research and development and the ability to convert digital investment into productivity and wider economic value.

Al-Khouri said digital sovereignty was becoming increasingly important to the future of Arab economies as data, artificial intelligence, cloud infrastructure, semiconductors and cybersecurity play a larger role in economic development.

The Arab Digital Economy Vision, launched in Abu Dhabi in 2018 and adopted by Arab leaders in 2022, provides a regional framework for digital transformation and cooperation.

The latest index highlights the different stages of digital development across Arab economies while pointing to continued investment in technology, infrastructure and skills as countries seek to expand their digital sectors.