Abu Dhabi has broken into the world's top 10 smartest cities in a new ranking as the emirate continues with its digital transformation agenda.
The UAE capital climbed three places from last year to 10th in the Smart City Index 2024 compiled by Switzerland's International Institute for Management Development (IMD), which was released on Tuesday.
Dubai also rose in the ranking of 142 cities, rising from 17th last year to 12th.
Riyadh climbed five places to 25th, while Makkah and Jeddah came 52nd and 55th, respectively. Doha rose 11 places to 59th while Muscat was 88th.
The list is based on assessments of economic and technological aspects of smart cities, as well as factors such as quality of life, environment and inclusion.
It assesses the perceptions of residents on issues related to structures and technology applications available to them in their city. Each score is computed by referring to the past three years of the survey.
"Cities must design and adopt strategies that can resist the test of a future plagued with growing uncertainties,” said Bruno Lanvin, president of the Smart City Observatory, part of IMD.
“Health-related concerns remain high, while climate-related ones grow even larger, a mix complicated by renewed international tensions. Trust and good governance are growing in importance, and the significance of [artificial intelligence] in city design and management is set to increase. Counterintuitive as it may sound, AI can help cities to become more humancentric.”
Smart city plans
A smart city uses the latest information and communications technology to connect people and devices, improve operational efficiency and boost economic activity.
Abu Dhabi ranked high for safety (87.4 per cent), culture and leisure (88.7 per cent), public transport (83.8 per cent), green spaces (84.7 per cent) and medical services (86.3 per cent), the report found. Dubai also ranked strongly for safety (88.5 per cent), medical services (82.2 per cent) and public transport (79.7 per cent).
The UAE cities have made significant strides with their smart city plans as they use technology to accelerate their strategies of becoming knowledge-based economies.
In February, Abu Dhabi and Shenzhen signed a twin city agreement to share knowledge and collaborate on smart city projects across several areas including infrastructure, city planning, green mobility, transport, advanced technology, autonomous solutions, sustainability and urban development.
Abu Dhabi-based Bayanat, an AI-powered geospatial data products and services provider, said in August it was working on boosting its capabilities to ensure the emirate was “first in the world” when it comes to smart city infrastructure.
Singapore-based companies are also collaborating with Abu Dhabi groups including Adnoc, the Department of Municipalities and Transport, and Masdar City to develop smart city pilot projects in the emirate.
These include transforming street lighting as well as increasing the energy efficiency of Al Dannah City buildings, Abu Dhabi Investment Office announced last year.
Meanwhile, in Dubai, the Roads and Transport Authority unveiled its Digital Strategy 2023-2030 in December, which involves 82 projects aimed at scaling up its smart city plans.
This involves "enabling 100 per cent FinTech-driven mobility, increasing digital service adoption to 95 per cent, digitising the skill set of RTA’s employees to as much as 100 per cent, and developing 50 artificial intelligence use cases”, the RTA said at the time.
Top 10 smartest cities globally
In a top 10 largely dominated by Europe, the Swiss city of Zurich retained top spot – a position it has held since 2019 (except for 2022, when the ranking was not released).
Oslo in Norway came in second, also maintaining its position since the index began, while Australia's capital, Canberra, retained third place.
Geneva, Singapore, Copenhagen, Lausanne, London and Helsinki rounded off the top 10.
The report said Abu Dhabi, Zurich, Oslo, Singapore, Beijing and Seoul have been the most consistently high-performing cities in the top 20 since the index began.
"Cities in the top 20 are geographically located in areas where social and economic environments are relatively predictable, even against the overall climate of global uncertainties," the report said.
"They are also cities in which visible initiatives have been taken to facilitate the lives of citizens and to improve the overall ‘quality of life’ associated with their respective names."
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
FIXTURES
Saturday, November 3
Japan v New Zealand
Wales v Scotland
England v South Africa
Ireland v Italy
Saturday, November 10
Italy v Georgia
Scotland v Fiji
England v New Zealand
Wales v Australia
Ireland v Argentina
France v South Africa
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Italy v Australia
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England v Japan
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Saturday, November 24
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Scotland v Argentina
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Ireland v United States
France v Fiji
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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THE BIO
Ms Al Ameri likes the variety of her job, and the daily environmental challenges she is presented with.
Regular contact with wildlife is the most appealing part of her role at the Environment Agency Abu Dhabi.
She loves to explore new destinations and lives by her motto of being a voice in the world, and not an echo.
She is the youngest of three children, and has a brother and sister.
Her favourite book, Moby Dick by Herman Melville helped inspire her towards a career exploring the natural world.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
UAE v Ireland
1st ODI, UAE win by 6 wickets
2nd ODI, January 12
3rd ODI, January 14
4th ODI, January 16
Stats at a glance:
Cost: 1.05 billion pounds (Dh 4.8 billion)
Number in service: 6
Complement 191 (space for up to 285)
Top speed: over 32 knots
Range: Over 7,000 nautical miles
Length 152.4 m
Displacement: 8,700 tonnes
Beam: 21.2 m
Draught: 7.4 m
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