UAE Among Top 10 Most Competitive Nations In The World

The UAE ranks among the top 10 most competitive nations in the world, according to the 2013 world competitiveness rankings released by Swiss business school IMD.

The annual list, which includes 60 economies, positions the UAE in the eighth place, up eight spots since last year.

The nation has increased its ranking since 2012 in areas such as government budget surplus/deficit per cent, inflation, health expenditure, exchange rate stability and internet bandwidth speed.

However, it has seen declines in other parameters including government subsidies, collected tax revenues, short-term interest rate and direct investment flows abroad.

Tweeting about the report, Dubai’s ruler Sheikh Mohammed Bin Rashid Al Maktoum said: “I congratulate our President & the numerous teams who made this possible. To the world we say: UAE people settle for no less than 1st place.”

He also wrote: “The next 2 yrs [sic] will witness grand projects that would impress everyone & take the UAE to new levels of economic & development performance.

“We are optimistic, confident in our people, & tirelessly hard working. Our aim will always be achieving happiness for UAE people.”

In a country specific report, IMD said the main challenges for the UAE in 2013 include: maintaining its edge as a global international hub for aviation, tourism and trade; building up R&D; focussing on industry-academia partnerships and encouraging entrepreneurship; strengthening the educational system for a knowledge-based economy and bringing the national data infrastructure in line with international best practices.

“Over the past few years, the UAE government has intensified its efforts in introducing policies that help create a highly diverse, stable, and competitive business environment across the nation,” said Abdullah Nasser Lootah, secretary general of the Emirates Competitiveness Council.

“The UAE’s business and social environment is an exceptional value proposition for businesses, investment and talent from around the world, encompassing a dynamic economy, a business-friendly environment, quality of corporate governance and social cohesion.”

Globally, the US maintained its first place on the ranking, followed by Switzerland, Hong Kong, Sweden and Singapore. Qatar was 10th on the list, retaining the same spot since last year.

Professor Stephane Garelli, director of the IMD World Competitiveness Center, said: “While the Eurozone remains stalled, the robust comeback of the US to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate.

“Structural reforms are unavoidable, but growth remains a prerequisite for competitiveness. In addition, the harshness of austerity measures too often antagonises the population. In the end, countries need to preserve social cohesion to deliver prosperity.”