Muscat – Muscat has improved its standing in the global IMD Smart City Index, rising to 87th place out of 142 cities ranked worldwide in the 2025 edition. Muscat was ranked 88th in 2024 and 96th in 2023.

The index, developed by World Competitiveness Center (WCC) of IMD Business School, assesses cities on how they balance economic and technological development with quality of life indicators such as housing, healthcare, mobility, governance and inclusiveness.

Muscat’s overall performance earned it a ‘B’ grade, with strong scores in areas such as access to green spaces, public safety, online access to services and healthcare provision. However, the survey highlighted housing affordability as the leading concern among residents. More than 60% of respondents in Muscat identified affordable housing and unemployment as the top priorities for the city’s future development, reflecting a global trend where housing emerged as the dominant issue in 110 out of 146 cities surveyed.

The survey noted that access to affordable housing has become a global challenge, driven by rising prices and supply shortages, a situation impacting cities as diverse as Dublin, Vancouver and Dubai.

Commenting on the broader findings, Arturo Bris, Director of WCC, said, “Access to housing is a global issue, driven by three major factors – population moves and immigration reducing the supply of affordable housing, overall price increases, and increasing prices of certain commodities.”

Muscat also scored positively in public safety, basic sanitation services and air quality, with residents expressing satisfaction in these areas. The city’s initiatives in digital governance –  including online public services and platforms for civic engagement – were highlighted as contributors to improved trust in local authorities.

Globally, Zurich topped the 2025 Smart City Index, followed by Oslo and Geneva. Within the region, Dubai (4th) and Abu Dhabi (5th) both entered the top ten for the first time, reflecting their progress in healthcare, public spaces and environmental management. Jeddah is ranked 27th, Doha 33rd, Manama 36th and Mecca 39th.

Experts noted that sustaining growth requires addressing urban challenges through strategic planning. “Smart cities succeed when they prioritise liveability, sustainability and governance, using technology as a tool to empower residents,” said Christos Cabolis, Chief Economist at WCC.

The IMD survey emphasised the fact that there is no ‘one-size-fits-all’ formula for becoming a smart city. Instead, success depends on building strong foundations of quality basic services, leveraging technology to address local needs and ensuring inclusive growth.