Edinburgh has received a ‘best in class’ rating in a new global competitive city tracker from global sustainable development consultancy Arup.

The Scottish capital is among the highest rated cities, alongside places like London, Auckland, and Singapore, thanks to its high quality of life, digital infrastructure, burgeoning technology and financial sectors, and leading higher education institutions.

The City Competitiveness Redefined Tracker was created to show which urban centres are best placed for long-term success, and measured 63 major cities against future success indicators.

These indicators span four key assessment areas for city competitiveness, including investor attractiveness, assets and infrastructure, ‘liveability and lovability’, and urban management and governance.

In the UK, Edinburgh and London are among the cities with the highest ‘best in class’ rating, alongside Paris, Vancouver, and Melbourne, with other cities rated as ‘contender’, ‘emerging’, or ‘aspiring’ based on metrics designed to assess how prepared they are to foster future success.

However, despite its top rating the tracker found Edinburgh’s infrastructure, particularly for transportation and housing, struggles with accommodating the rapid growth in both population and tourism. 

The report’s authors warn that the city needs work to reduce pressure in the transport, logistics and warehousing sectors to remain competitive in the future, or risks losing out to emerging cities that are beginning to challenge the world’s traditional powerhouses.

Lima, in Peru, for example is becoming more attractive to investors thanks to its position as a regional leader in green finance, while cities like Seoul and Buenos Aires are championing climate action and resilience, making them a hotspot for investment.

The report claims there is a growing relationship between cities with strong climate resilience and mitigation plans, and their potential to attract and retain investment, business, and talent, with failure to manage climate risks being detrimental to a city’s global competitiveness.

“Edinburgh is one of the most attractive cities in the world to live and work,” said Vicky Evans, cities leader at Arup.

“But to remain among the best performers in the world in the future it needs to make sure its infrastructure can cope with that high demand for new residents and tourism. Building resilience to every aspect of its infrastructure – from the changing climate to energy and water security – will be vital for making that happen.” 

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Edinburgh’s city centre has undergone significant investment over the past decade, with first the controversial and hugely over-budget trams project, followed by millions spent renovating the Quartermile area, the St James Quarter, and developing the Edinburgh Futures Institute.

While a ‘best in class’ rating shows that these investments are working to lure business to the city, with a host of startups and tech innovation as evidence, it may take more for Edinburgh to retain its competitive edge.

Earlier this year, the Investment Attractiveness Index, complied by a team of experts at the Centre for Economics and Business Research, found Edinburgh’s overall investor attractiveness score was 5.7 points lower than the previous year, thanks mainly to a decrease in growth potential, driven by lower predicted GVA growth in 2024 compared to 2023.