UAE ranks 7th in World Competitiveness Report

by admin on June 21, 2024

UAE climbed to 7th in the World Competitiveness Report

UAE ranks 7th in World Competitiveness Report, published by the International Institute for Management Development (IMD), which assesses the competitiveness of 63 economies based on economic performance, government efficiency, business efficiency, and infrastructure. The UAE’s jump to 7th place reflects significant improvements across these dimensions, surpassing several major economies.

The UAE ranked first in the following categories: Employment, Internet Users, and Industrial Disputes, it ranked second in: Absence of Bureaucracy, Tourism Receipts, and Adaptability of Government Policy, third in Immigration Laws, and Fourth in Overall Productivity and International Experience.

The UAE’s position in this esteemed list is a testament to its strategic economic vision, effective governance, and innovative infrastructure development.

Source https://www.statista.com/

What are the factors driving UAE’s competitiveness?

Strategic Economic Policies

The UAE’s economic policies have been pivotal in enhancing its global competitiveness, focusing on diversifying the economy: The UAE has its economy beyond oil, focusing on sectors such as finance, tourism, real estate, and technology. This diversification enhances economic resilience and growth potential. Furthermore, thanks to ambitious leadership, initiatives such as the UAE Centennial 2071 and Dubai Economic Agenda (D33) aim to position the UAE among the world’s top economies, fostering long-term sustainable growth.

Government Efficiency

Efficient governance plays a critical role in the UAE’s competitive ranking:

• Regulatory Framework: Streamlined regulations, ease of doing business, and investor-friendly policies create a conducive environment for business operations and attract foreign investments.
• Public Services: High-quality public services, including healthcare, education, and infrastructure, contribute to the overall quality of life and economic efficiency.

Business Environment

The UAE offers a dynamic and competitive business environment. The GCC country offers simplified business registration processes, robust legal frameworks, and efficient dispute resolution mechanisms to facilitate smooth business operations. It has been investing in smart city initiatives, artificial intelligence, and digital infrastructure, thus becoming a leader in technological innovation.

World-Class Infrastructure

When it comes to transport and logistics, the UAE boasts state-of-the-art transport hubs, including Dubai International Airport and Jebel Ali Port, which facilitate global connectivity and trade.

Comparison with Other Leading Economies

Denmark and Ireland

The UAE’s performance is comparable to top-ranking nations like Denmark and Ireland:

• Denmark leads with a strong focus on sustainability, innovation, and quality of life, driving its competitiveness.
• Ireland excels due to its favorable business environment, robust economic policies, and thriving technology sector.

United States and Germany

The UAE’s ranking above established economies like the United States and Germany highlights its competitive edge:

• United States benefits from a large and dynamic economy but faces challenges related to economic inequality and political polarization.
• Germany is strong in manufacturing and export but grapples with demographic challenges and economic restructuring.

The UAE’s balanced approach to economic diversification, efficient governance, and advanced infrastructure enables it to perform strongly against these well-established economies.

Investment Opportunities in the UAE

Real Estate Sector

The UAE’s real estate market offers lucrative opportunities for investors:

• Residential and Commercial Developments: Continued demand for residential and commercial properties, coupled with innovative developments, brings about attractive investment prospects.
• Sustainable Practices: Adoption of green building standards and sustainable urban planning aligns with global trends, appealing to eco-conscious investors.

Financial Services

The UAE’s financial sector is a cornerstone of its global competitive edge:

• Financial Hub: The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) offer comprehensive financial services and a favorable regulatory environment.
• Fintech Growth: Investments in fintech and blockchain are transforming the UAE into a leader in financial technology, enhancing its competitiveness in the financial sector.

The UAE’s advancement to 7th place in the 2024 World Competitiveness Yearbook underscores its robust economic framework, innovative initiatives, and strategic investments. The country’s blend of economic stability, business-friendly policies, and cutting-edge infrastructure offers a compelling proposition for investors seeking growth and opportunity.