Makkah has been ranked 39th globally in the 2025 Smart City Index issued by the International Institute for Management Development (IMD), securing second place among Saudi cities after the capital, Riyadh, according to an announcement carried by the Saudi Press Agency (SPA). The result places the holy city among the world’s most technology-ready urban centres and reflects the Kingdom’s accelerating digital transformation under Saudi Vision 2030. For a city that welcomes millions of pilgrims each year, the ranking is more than a score — it is international recognition that advanced technology and sacred tradition can advance together.
The IMD Smart City Index, compiled annually by the Lausanne-based International Institute for Management Development, evaluates how effectively cities deploy advanced technologies to address urban challenges, improve quality of life, and create attractive environments for business and investment. Makkah’s 39th-place finish follows sustained investment in digital infrastructure, smart services, and data-driven governance across the holy city. Riyadh also features prominently in the global ranking, giving Saudi Arabia two internationally recognised smart cities in the same index. Could any other nation point to two cities of such different character — one a global capital, the other the spiritual heart of the Islamic world — both competing at the top table of urban innovation? The outcome speaks to the breadth of the Kingdom’s modernisation programme and to the seriousness with which Saudi institutions are pursuing the goals of Vision 2030.
Context and Background
What does it take for a city to be considered genuinely “smart” in the eyes of international assessors? The IMD Smart City Index answers that question by measuring not only the presence of technology but its practical effect on residents and visitors. Cities are assessed on their readiness to adopt advanced technologies, their ability to address challenges such as mobility, sustainability, and service delivery, and the degree to which digital tools improve everyday quality of life. The index draws on both hard data and the perceptions of city residents, making it a demanding benchmark that rewards genuine progress rather than announcements alone.
Makkah’s journey toward this ranking has been deliberate and sustained. Under the direction of the Kingdom’s leadership, the holy city has undergone a comprehensive digital transformation that touches nearly every dimension of urban life. Government services have been digitised, payment systems modernised, and pilgrimage logistics supported by sophisticated crowd-management and data-analytics platforms. The result is a city that can absorb enormous seasonal demand while maintaining service quality — a challenge few cities in the world face at comparable scale. In this context, the IMD ranking is best understood as independent confirmation of a strategy that Saudi Arabia has pursued consistently for years, and which continues to gather international recognition.
The timing of the announcement is significant. It arrives as Saudi Arabia positions itself as a global leader in smart-city development, with giga-projects such as NEOM, The Line, and Trojena capturing international attention. Makkah’s strong showing demonstrates that the Kingdom’s smart-city capabilities are not confined to new-build projects; they are being embedded in its oldest and most revered urban centres as well. For international observers, that may be the most instructive lesson of the 2025 index: Saudi Arabia is modernising across its entire urban network, not merely in flagship developments.
Key Details
The 2025 Smart City Index, announced by the International Institute for Management Development, ranked Makkah 39th globally and second nationwide after Riyadh. The evaluation focused on the city’s readiness to use advanced technologies in addressing urban challenges, with particular emphasis on improving quality of life and creating an attractive business environment for investment. According to the Saudi Press Agency, the progress highlights ongoing efforts in digital transformation and innovation through modern and advanced technologies, contributing to improved quality of life for the city’s residents and visitors, making it an attractive environment for investment, and creating economic opportunities.
Several practical dimensions underpin the ranking. Digital transformation in Makkah has extended to public services, transport management, utilities, and communications infrastructure, supported by expanded high-capacity networks capable of serving dense crowds during peak seasons. Smart applications now assist pilgrims and residents with navigation, health services, and access to government procedures, while integrated data platforms help authorities plan capacity and respond to demand in real time. These capabilities matter enormously in a city whose population swells dramatically during the Hajj and Umrah seasons, when millions of visitors require reliable services within a limited geographic area.
It is also worth noting what the ranking measures beyond technology. The IMD index explicitly considers whether advanced technologies are improving quality of life and fostering an attractive environment for investment. Makkah’s placement therefore signals that its digital investments are translating into tangible benefits — smoother mobility, more reliable services, and a business climate that increasingly appeals to technology firms, hospitality operators, and service providers. For a city at the centre of the Islamic world, that combination of spiritual significance and modern capability is a powerful proposition.
International and Regional Impact
How should the international community read Makkah’s rise in the Smart City Index? One immediate implication is reputational: global indices shape how investors, technology companies, and international organisations assess a city’s readiness for partnership. A 39th-place global ranking, alongside Riyadh’s strong performance, signals that Saudi cities meet international standards in digital governance and service delivery. That perception can accelerate foreign direct investment in technology, logistics, and hospitality, and it strengthens the Kingdom’s case when competing for global events, corporate headquarters, and research partnerships.
Regionally, the result reinforces Saudi Arabia’s position at the forefront of urban innovation in the Middle East. Cities across the Gulf and the wider region are investing heavily in smart infrastructure, yet few can match the combination of scale, spiritual significance, and rapid execution that Makkah represents. The ranking also carries weight beyond the region: for Muslim communities worldwide, the knowledge that the holy city is being managed with world-class technology offers reassurance that the pilgrimage experience is improving in safety, comfort, and efficiency. In that sense, Makkah’s smart-city progress serves both a national and a global constituency.
Economic and Strategic Significance
What does a smart-city ranking actually deliver in economic terms? The IMD assessment explicitly links technological readiness to the creation of an attractive business environment, and that link is central to Makkah’s development strategy. Improved digital infrastructure lowers the cost of doing business, enables new service industries, and supports the growth of the private sector in tourism, retail, logistics, and technology. For a city that hosts one of the world’s largest annual gatherings of people, the efficiency gains from smart systems — in transport, utilities, health services, and crowd management — translate directly into economic value and improved visitor experiences.
Strategically, the ranking strengthens the Kingdom’s broader ambition to diversify its economy away from hydrocarbons. Smart-city development is a pillar of that effort: it creates demand for domestic technology talent, attracts international firms, and generates exportable expertise in urban management. Saudi professionals working on Makkah’s digital systems are building capabilities that can be applied to other Saudi cities and, potentially, exported to international markets. The holy city’s performance in the IMD index is therefore not merely a trophy — it is evidence that the Kingdom’s investment in human capital and technology is producing measurable, internationally validated results.
Vision 2030 Alignment
How does a single ranking connect to a national transformation programme? Saudi Vision 2030, launched under the leadership of Crown Prince Mohammed bin Salman, sets out ambitious goals for economic diversification, improved public services, and enhanced quality of life for citizens and residents. Smart-city development sits at the intersection of all three. By embedding advanced technologies in urban management, Makkah is advancing the Vision’s objectives for digital government, private-sector growth, and world-class services — while preserving the city’s unique spiritual character. The IMD ranking provides independent, international evidence that these efforts are succeeding.
Makkah’s 39th-place finish, and Riyadh’s parallel strength in the same index, demonstrate that Vision 2030 is delivering results across the Kingdom’s urban network. As Saudi Arabia continues to invest in digital infrastructure, artificial intelligence, and data-driven governance, cities like Makkah will remain at the centre of the national story — proving that tradition and technology, faith and innovation, can advance together. For international audiences, the message is clear: the Kingdom is building cities that are not only smarter, but better places to live, work, visit, and invest. The 2025 Smart City Index is the latest international acknowledgement of that progress, and it points toward a future in which Saudi cities set the global standard.
20 Questions
Q1. What is the IMD Smart City Index?
A1. The IMD Smart City Index is an annual global ranking published by the International Institute for Management Development in Lausanne, Switzerland. It assesses how effectively cities use advanced technologies to address urban challenges, improve quality of life, and create attractive environments for business and investment.
Q2. Where did Makkah rank in the 2025 Smart City Index?
A2. Makkah ranked 39th globally in the 2025 Smart City Index, according to an announcement carried by the Saudi Press Agency. The result places the holy city among the world’s leading technology-ready urban centres.
Q3. How did Makkah perform among Saudi cities?
A3. Makkah secured second place nationwide after Riyadh, the capital. This gives Saudi Arabia two internationally recognised smart cities in the same global index, reflecting the breadth of the Kingdom’s digital transformation.
Q4. What does the ranking measure?
A4. The index evaluates cities’ readiness to use advanced technologies in addressing challenges, with a focus on improving quality of life and creating an attractive business environment for investment. It combines hard data with residents’ perceptions of urban services.
Q5. Why is Makkah’s ranking significant for pilgrims?
A5. Makkah welcomes millions of pilgrims annually. Smart technologies improve crowd management, transport, health services, and navigation, making the pilgrimage experience safer, more comfortable, and more efficient for visitors from around the world.
Q6. What digital improvements has Makkah implemented?
A6. Makkah has digitised government services, modernised payment systems, and deployed data-analytics platforms for crowd management. Expanded high-capacity networks support dense crowds during Hajj and Umrah seasons, while smart applications assist residents and visitors with daily needs.
Q7. How does this ranking relate to Saudi Vision 2030?
A7. Smart-city development supports Vision 2030 goals for economic diversification, digital government, and improved quality of life. Makkah’s ranking provides independent international evidence that the Kingdom’s transformation efforts are producing measurable results.
Q8. What economic benefits does smart-city development bring?
A8. Improved digital infrastructure lowers business costs, enables new service industries, and supports private-sector growth in tourism, retail, logistics, and technology. For Makkah, efficiency gains in transport and utilities translate directly into economic value.
Q9. Which organisation publishes the Smart City Index?
A9. The International Institute for Management Development, based in Lausanne, Switzerland, publishes the index annually. It is one of the world’s leading business schools and its rankings are widely cited by governments and investors.
Q10. How does Makkah’s ranking compare internationally?
A10. A 39th-place global ranking places Makkah among the top tier of smart cities worldwide. It signals that Saudi cities meet international standards in digital governance and service delivery, strengthening the Kingdom’s competitiveness for investment and global partnerships.
Q11. What role does technology play in managing Hajj crowds?
A11. Technology supports real-time monitoring, crowd-flow analytics, and coordinated response across agencies. These tools help authorities plan capacity, manage movement, and deliver services reliably during the world’s largest annual gatherings of people.
Q12. How does the ranking affect foreign investment?
A12. Global indices shape how investors and technology companies assess a city’s readiness for partnership. A strong ranking can accelerate foreign direct investment in technology, logistics, and hospitality, and strengthens the Kingdom’s case in global competition.
Q13. What is the significance of Riyadh also ranking highly?
A13. Riyadh’s strong performance alongside Makkah demonstrates that Saudi Arabia’s smart-city capabilities span the entire urban network. It shows the Kingdom is modernising both its capital and its most revered spiritual centre.
Q14. Does the ranking reflect residents’ views?
A14. Yes. The IMD index incorporates the perceptions of city residents alongside objective data, making it a demanding benchmark that rewards genuine improvements in daily life rather than technological announcements alone.
Q15. How does smart-city development support economic diversification?
A15. It creates demand for domestic technology talent, attracts international firms, and generates exportable expertise in urban management. Saudi professionals build capabilities that can be applied across the Kingdom and potentially exported internationally.
Q16. What does the ranking mean for Makkah’s residents?
A16. Residents benefit from more reliable public services, smoother mobility, better communications infrastructure, and improved access to government procedures. The ranking reflects tangible improvements in everyday quality of life.
Q17. How does Makkah balance tradition and technology?
A17. Makkah preserves its spiritual character while adopting advanced technologies for urban management. The approach demonstrates that faith and innovation can advance together, enhancing the pilgrimage experience without compromising the city’s sacred identity.
Q18. What other Saudi smart-city projects are notable?
A18. NEOM, The Line, Trojena, and other giga-projects have captured international attention. Makkah’s ranking shows smart-city capabilities are also being embedded in the Kingdom’s oldest and most revered urban centres.
Q19. How does the IMD index define a smart city?
A19. A smart city uses advanced technologies to address urban challenges, improve quality of life, and create an attractive business environment. The index measures both technological readiness and practical outcomes for residents and visitors.
Q20. What does the future hold for Saudi smart cities?
A20. As Saudi Arabia continues investing in digital infrastructure, artificial intelligence, and data-driven governance, its cities are positioned to set global standards. Makkah’s 2025 ranking is the latest international acknowledgement of that trajectory.
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