ABU DHABI // The UAE economy is the highest rated in the Arab world after it leapt seven places to 12th in a global competitiveness index of 144 countries.
The jump is by far the largest movement in the top 30 positions of the World Economic Forum’s annual Global Competitiveness Index, and leaves the UAE sandwiched between Nordic powerhouses Denmark and Norway and breathing down the necks of Sweden and the UK.
The rapid climb shows how far the UAE has come since the low point of the global financial crisis of 2007-09, when it languished in 37th position.
The top 10 positions in the latest listings, published on Wednesday, are occupied by advanced western economies and three Asian tigers.
Switzerland, home of the WEF, tops the ranking for the sixth consecutive year, with Singapore in second place for the fourth time running and the US creeping back up to the third slot as it recovers from the financial crisis that sent it down the rankings in 2009.
The other top 10 positions go to Finland, Germany, Japan, Hong Kong, the Netherlands, the UK and Sweden.
The other five members of the GCC have not fared as well as the UAE. Since last year, Qatar has fallen three places to 16th and Saudi Arabia four places to 24, Kuwait is down four to 40th, Bahrain slips one spot to 44th and Oman is down 13 places to 46th.
The next nearest Arab state is Jordan, in 64th, followed by Morocco (72), Algeria (79), Tunisia (87), Egypt (119), Libya (126) and Yemen (142).
India is in 71st position, falling 11 places since last year, and Iran is down one spot to 83rd.
Sheikh Mohammed bin Rashid, the Prime Minister and Ruler of Dubai, said the UAE’s surge up the league table was a tribute to federal and local teams working as one for the country’s progress.
“Despite the many challenges facing our region, our main focus has been, and will remain, on progress in our nation and developing our economy for the welfare of our citizens. Our message to those around us is that the key to true stability lies in the creation of real development.”
The WEF defines competitiveness as the “institutions, policies, and factors that determine the level of productivity”, and measures the competitiveness of 144 countries against a dozen “pillars”. These include the quality of its institutions, infrastructure, health care and primary education, the efficiency of its labour market and its technological readiness, business sophistication and level of innovation.
To measure these pillars, the index uses statistical data such as school enrolment rates, government debt, budget deficit and life expectancy, drawn from sources including internationally recognised agencies, such as the United Nations agency, the International Monetary Fund and the World Health Organisation.
To produce its report, the WEF works with national partner organisations around the world. In the UAE they include the Department of Economic Development in Abu Dhabi, the Dubai Competitiveness Office, Zayed University and the Emirates Competitiveness Council.
This year’s report is published at a time when “the global economy seems to be finally leaving behind the worst and longest-lasting financial and economic crisis of the last 80 years”, Espen Barth Eide, managing director of the WEF, writes in his preface.
However, he cautions, “this resurgence is moving at a less decisive pace than it has after previous downturns and heightened risks looming on the horizon could derail the global recovery”.
To guard against this, policymakers and leaders of business and civil society must recognise “the need for economic growth to be balanced by providing opportunities and benefits for all segments of the population and by being respectful of the environment”.
Set up in 1971 as a not-for-profit foundation with headquarters in Geneva, the WEF is an independent international institution “dedicated to improving the state of the world through public-private cooperation”.
It is best known for its annual meeting in Davos, which gathers political, business, academic and other leaders of society “in collaborative efforts to shape global, regional and industry agendas and define challenges, solutions and actions”.
From November 9 to 11 Dubai will host the Summit on the Global Agenda, which brings together “thought leaders” from the WEF’s Network of Global Agenda Councils, comprising experts from business, academia, government and civil society.
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