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The Global Competitiveness Index (GCI), published by IMD (International Institute for Management Development- World Competitiveness Center), is an annual ranking that measures the competitiveness of countries based on their ability to foster sustainable economic growth. The index evaluates key factors that drive a country’s productivity, economic performance, and overall competitiveness. The rankings, known as the IMD World Competitiveness Rankings, are published annually and are widely referenced by policymakers, businesses, and researchers. IMD provides two distinct rankings that assess competitiveness:
1. World Competitiveness
Ranking 2025 (WCR)
Which is defined by 4 main factors:
Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
2. World Digital Competitiveness
Ranking (WDCR)
Defines digital competitiveness into three main factors:
Knowledge, Technology, and Future Readiness
World Competitiveness Ranking (WCR)
Methodology
According to the IMD World Competitiveness Booklet 2025, the methodology of the World Competitiveness Ranking divides a country’s national environment into four main factors:
Economic Performance
Government Efficiency
Business Efficiency
Infrastructure
Each of these factors is further divided into five sub-factors, highlighting every facet of the areas analyzed. In total, the ranking features 20 sub-factors, which together comprise 341 criteria. Note that the number of criteria per sub-factor may vary (for example, assessing Education requires more criteria than evaluating Prices). Despite this, each sub-factor carries the same weight in the overall ranking—5% each, so that 20×5=100%20 \times 5 = 100\%20×5=100%.
The criteria are classified as either:
Hard data, which measure competitiveness objectively (e.g., GDP).
Soft data, which capture perceptions of competitiveness (e.g., availability of competent managers).
In the overall ranking, hard data account for two-thirds of the weight, while survey-based soft data account for one-third.
The Global Competitiveness Index (GCI) uses statistical normalization to ensure that indicators with different scales and units can be compared across countries. The methodology has evolved over time, reflecting improvements in data collection and reporting.
It is worth noting that due to changes in the reporting custodian of the GCI, some terminologies have been updated. For example, the indicator “Quality of Math and Science Education,” which was previously reported independently, is now incorporated under the “Education” sub-factor within the infrastructure factor.
Kuwait Insights from World Competitiveness Ranking 2025 (WCR)
Kuwait is ranked 36th out of 69 countries in the World Competitiveness Ranking, with a score of 68.69, marking a one-position improvement from last year (37th ). This progress is attributed to enhancements in Government Efficiency, Business Efficiency, and Infrastructure. The figure below illustrates Kuwait’s historical ranking (with data available from 2023), followed by its ranking across each of the four main factors.
Summary points:
•The Economic Performance factor is the only area in which Kuwait experienced a decline compared to last year. A likely cause is the Domestic Economy sub-factor, which is ranked 65th, making it the lowest-ranked sub-factor for Kuwait.
•Kuwait’s best-ranked sub-factors are Prices (under Economic Performance) and Public Finance (under Government Efficiency), both achieving 9th place.
•In regional comparison, Kuwait ranks 24th among countries in Europe, the Middle East, and Africa.
•According to the GCI Kuwait Profile 2025, the main challenges facing Kuwait are*:
Oil dependence, which makes the economy vulnerable to international oil market fluctuations and leads to fiscal strain.
Slow implementation of economic reforms, leaving the economy at risk if oil demand decreases.
Unappealing investment environment, with cumbersome bureaucracy weighing on investment decisions.
Ballooning public sector and over-generous subsidies, reducing public investment in infrastructure upgrades.
Workforce skills gap, which could hinder the country’s transition to a knowledge-based economy.
*Provided by Kuwait Anti-Corruption Authority (Nazaha), Kuwait.
2025 WCR for GCC Countries
The figure below shows a comparison between Kuwait and GCC countries in the WCR:
· • UAE ranks in the top 5 across 3 out of 4 factors.
• The infrastructure is the only factor that all GCC country are ranked below 20th position.
World Digital Competitiveness Ranking (WDCR)
Digital competitiveness is central to economic performance and has become a key pillar of national resilience during times of disruption. As industries, businesses, and governments accelerate the adoption of emerging technologies, the importance of robust digital policy frameworks grows. Equally critical are agile business models and a highly skilled, mobile workforce capable of fully leveraging the opportunities presented by deeper digital integration.
Methodology
The IMD World Digital Competitiveness Ranking 2025 presents the overall rankings for the 69 economies covered by the World Competitiveness Yearbook (WCY). The rankings are based on three main factors (see figure below), each composed of three sub-factors. These sub-factors are calculated using 61 criteria, comprising 40 hard data and 21 survey-based data.
Kuwait Insights from World Digital Competitiveness Ranking (WDCR)
In 2025, Kuwait ranked 42nd out of 69 countries in the Digital Competitiveness Ranking, marking an improvement from its 2024 position (45th) . The tables below list Kuwait's ranking across the the three main digital competitiveness factors and their respective sub-factors.
•Kuwait’s performance in the Digital Competitiveness Ranking has improved across all factors and sub-factors, except for Scientific Concentration and Technology Capital. This reflects ongoing efforts to strengthen Kuwait’s digital ecosystem.
2025 WDCR for GCC Countries
• According to the WDCR report, the UAE leads the GCC and ranks among the top 10 globally for the first time. This achievement is driven by its outstanding performance in the Future Readiness (5th) and Technology (6th) factors. The UAE’s key strength lies in its world-leading Talent sub-factor, where it ranks first for the international experience of its managers, first for digital and technological skills, and second for attracting highly skilled foreign personnel.
How can we enhance Kuwait’s Ranking
Enhancing Government Efficiency and Technology Infrastructure in Kuwait
•Expand e-government platforms to streamline public services and reduce bureaucratic delays.
•Train public sector employees in digital skills and innovation management.
•Public-Private Partnerships (PPPs):Encourage joint innovation projects between government, industry, and academia.
•Update regulations to support emerging technologies, fintech, AI, and digital services.
Building Talent Through Education and Research Institutions
Schools, higher education institutions, and research institutes form the backbone of Kuwait’s talent-development pipeline. By strengthening STEM education, advancing research capabilities, and nurturing entrepreneurial skills, these institutions play a pivotal role in enhancing the Knowledge pillar of the country’s innovation and competitiveness ecosystem. Their contributions translate directly into stronger innovation outputs and improved digital competitiveness at the national level.
Strengthening the Industrial and Private Sector
Developing Kuwait’s industrial and private sector, including SMEs and technology-based firms, will enhance economic performance and business efficiency.
Focusing on Scientific Concentration
To improve Kuwait’s Digital Competitiveness Ranking, emphasis should be placed on increasing total R&D expenditure (%), which directly contributes to the Scientific Concentration sub-factor, an area that currently shows room for significant improvement.
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