Abu Dhabi and Dubai have been named as “contenders” to reshape the global economic landscape in a flagship report from Oxford Economics.
The two emirates, along with the Saudi capital Riyadh, represent the Middle East on the list of 28 “cities to watch” in the UK-based advisory firm's Global Cities Index released on Tuesday.
Oxford Economics measured the cities on five metrics: economics, human capital, quality of life, environment and governance.
Five African cities – Accra, Cairo, Dakar, Luanda and Nairobi – and the Asia-Pacific's Bengaluru, Ho Chi Minh City, Kuala Lumpur, Shenzhen and Tashkent also made the cut. Europe, Latin America and North America also had five representatives.
These “dynamic contenders” are “rapidly evolving markets [that] are forging independent growth paths that key stakeholders and policymakers can no longer afford to ignore”, analysts at Oxford Economics said.
Oxford said the performance of the economic models of these cities can serve as models, as those "performing well in one category tend to excel in others", said Liam Sides, director of city services and lead author of the report.
“This is indicative of the circular, self-reinforcing nature of success ... a strong economy drives quality-of-life improvements, which in turn attracts skilled talent. Once a city enters this growth cycle, it takes significant shocks to displace it," he said.
Dubai rose nine spots from the 2025 list to enter the top 50 at 42 as it finished second in human capital and 53rd in economics.
Oxford Economics analysts noted that immigration reforms such as the Golden Visa and retirement visa programmes are “intended to incentivise longer-term stays, particularly for higher-income individuals”.
Abu Dhabi, on the other hand, slid by 11 to 84th, ranking sixth in human capital and 110th in economics. But Oxford analysts emphasised that “economic development in the rest of the Emirates, and the wider Gulf region, feeds off the success of Abu Dhabi’s economy”.
“It is also a city in full economic diversification and transformation mode,” they added.
Riyadh posted a significant leap of 47 spots to 50th, finishing fourth in human capital and 18th in economics – “a feat reflective of the significant economic and social development occurring in the city”, Oxford Economics said.
It also said that the Saudi capital has been “more shielded than other Middle Eastern cities” from the US-Iran conflict, “displaying notable resilience to the disruption caused … [thanks to] diversification efforts and targeted investment and policymaking”.
Overall, the three Gulf cities “have all burst on to the global scene and are increasingly attracting the world’s highest-skilled workers and most innovative businesses”, analysts said.
“The conflict in Iran is currently threatening some of this progress, but a combination of deep financial buffers and strong long-term fundamentals means the region’s major cities will continue to drive strong growth.”
The current conflict in the Middle East has disrupted economies and societies, but major Gulf cities have withstood the pressure with swift policies and safety measures to maintain their resilience.
Business activity in the UAE's non-oil private sector in August improved at the fastest pace since December 2024 in a clear sign of recovery as companies shook off the impact of the Iran war, the seasonally adjusted S&P Global UAE Purchasing Managers' Index showed earlier this month.
Saudi Arabia's non-oil private sector in August also reported growth in business activity, which was the strongest expansion in six months.
The Middle East's major cities “have cemented themselves as key players in the global economy by attracting the world’s brightest workers and most innovative companies”, Oxford said.
“However, the conflict in Iran threatens to undermine this hugely successful growth model, with the region’s ability to attract skilled workers and capital hit by wider geopolitical uncertainty. This highlights how challenges in just one category of our index can seep through into weaker performance elsewhere.”
New York retained the top spot overall in the Oxford report, followed by London and Paris, which also held on to their positions from the 2025 study. Rounding out the US-dominated top 10 are Seattle, San Francisco, Dublin, Boston, San Jose (California), Tokyo and Zurich.
“Their advantage is self-reinforcing: strong institutions and vibrant economies attract talent and capital, which in turn deepen the very conditions that drew them,” Oxford said.
“Yet these cities are more than centres of resilience. Their dense networks of businesses, institutions and people make them engines of adaptation, which is why shocks have tended to accelerate change in them rather than halt it.”
