The UAE scored 76.66 points, while Saudi Arabia scored 73.64 points, according to index results reported by Arab News. Bahrain, Qatar and Oman also belonged to the highest-performing group.
The rankings give investors a clear regional signal. Gulf markets have built stronger digital foundations than most Arab peers. However, the next phase will depend on turning that infrastructure into productivity, innovation and commercial scale.
Gulf leadership rests on digital foundations
Saudi Arabia’s payment shift shows how quickly adoption can move when infrastructure and policy align. The Saudi Central Bank reported that electronic payments accounted for 85% of payment transactions executed by individuals in the retail sector in 2025, up from 79% in 2024, according to the same central bank data.
That progress supports the Kingdom’s broader technology investment cycle. Digital payments create transaction data, improve service delivery and expand opportunities for financial technology providers. They also support more efficient commerce across retail, logistics and government services.
The UAE’s position reflects sustained investment in infrastructure, government services, cybersecurity, artificial intelligence and the knowledge economy. Al-Khouri of the Arab Federation for Digital Economy linked those investments to stronger productivity and economic value.
For capital providers, the distinction matters. Digital infrastructure creates a base for growth, while government platforms can improve demand visibility. Cybersecurity, cloud services and payments therefore remain investable themes across both markets.
Gulf digital leadership is moving from connectivity towards monetisation.
What does the ranking mean for investors?
The index also exposes a wider regional divide. The medium-performance group comprised Jordan, Kuwait, Morocco, Egypt, Tunisia and Algeria. The foundation-building group comprised Lebanon, Mauritania, Iraq, Djibouti, the Union of the Comoros, Libya, Palestine, Syria, Sudan, Somalia and Yemen.
The report showed stronger regional progress in infrastructure, government services and cybersecurity. However, gaps remained in innovation, data-economy development, research and development, and productivity gains from technology investment.
Those gaps create both constraints and opportunities. Gulf markets can attract projects requiring reliable infrastructure, data protection and advanced public systems. Other Arab markets may offer longer-term growth as their digital foundations strengthen.
The regional policy framework is already in place. The Arab Digital Economy Vision launched in Abu Dhabi in 2018 and received adoption by Arab leaders in 2022. It provides a basis for cooperation on digital transformation and shared economic priorities.
Investors should therefore track execution, not rankings alone. Key indicators include research spending, technology exports, digital skills, data regulation and the commercial performance of artificial-intelligence projects.
The 2026 index places the UAE at the forefront of Arab digital-economy performance and Saudi Arabia among the leading markets; investors should watch whether productivity and innovation close the gap next.
Quick answers
The UAE ranked first with 76.66 points and Saudi Arabia ranked second with 73.64 points, according to Arab News. Bahrain, Qatar and Oman completed the top five with scores of 66.75, 66.66 and 65.98 respectively.
The Saudi Central Bank reported that electronic payments reached 85% of total retail payments in 2025, up from 79% in 2024.
Metastat Insights projects the UAE’s digital payments and infrastructure market will grow from US$21.3bn in 2025 to US$39.2bn in 2033, implying a compound annual growth rate of 7.9%.
