The UAE has been ranked as the Middle East's leading country in the Internet economy, according to The Boston Consulting Group (BCG) in its annual report on Internet economies around the world.

The reputable consulting firm's e-Intensity Index measures the maturity of 85 Internet economies, which include all of the 28 member states of the European Union, most of Latin America and Asia, and 14 African countries.

The 2015 Index also ranked the UAE the 30th country globally with a score of 129, beating both China and Russia. In the Middle East, the UAE was followed by Turkey and Saudi Arabia, which has a score of 88.

The UAE's high GDP per capita, high smartphone penetration rate and comprehensive Internet infrastructure are credited with its leading role in the region's Internet economy, in addition to its thriving e-commerce sector and access to innovation in technology.

“It comes as no surprise that the UAE leads the Middle East when it comes to the maturity of its internet economy. The UAE’s e-Intensity Index ranking demonstrates that the country stands at the forefront of the ‘Internet of Things’ revolution,” said the BCG Middle East's managing director Hermann Riedl.

“In recent years, the UAE has continued to further advance its ‘Smart City’ agenda. And seamless, easy connectivity between people, governments, businesses, and communities, is at the crux of any ‘Smart City’ initiative."

The BCG's e-Intensity Index bases its results on three main components: How much various aspects of fixed and mobile infrastructure deployment are enabled, how actively businesses, governments, and consumers are engaging with the Internet and the expenditure of money spent on online retail and advertising.

This year's index saw northern Europe's wealthiest nations dominate, with Denmark being ranked the No. 1 Internet economy in the world, followed by Luxembourg, Sweden, South Korea, the Netherlands and Norway.

It also found that Latin American and African countries have risen annually by more than 20 percent since the publication of the first index in 2011. Thailand and China witnessed the most improvement, with Thailand moving up 12 spots, to the 62nd place and China rising 10 spots, to 35th.