• Home
• /
• Opinion

KT edit: A competitive economy strives for excellence

Over the years, the UAE got closer to the top 10 and featured at 12th spot in 2014, which is its best ever performance.

There's much to introspect as we assess the UAE's improved ranking on the Global Competitiveness Index this year. The country has jumped two positions to rise to 25th position among 140 countries. For the last four years, the UAE has consistently remained at the top among Arab economies, and this year's rankings are no different. The emirate improved its score on eight of the 12 key economic pillars including macroeconomic stability, infrastructure, technology and business dynamism. However, the current position is still two notches lower when compared to a decade ago.
In 2008, the UAE was placed 31 and had drastically improved its rank the following year in 2009 to be at 23. Over the years, the UAE got closer to the top 10 and featured at 12th spot in 2014, which is its best ever performance.
The pace of reforms indicates that the country is well placed to score high on the index. The thrust on innovation and focus on optimising the use of technology in various fields could accelerate development and growth. The UAE has already implemented a series of changes that are improving the ease of doing business. Getting a work visa is easy. Initiatives have been announced to hone local talent and give them avenues to explore their potential.
The focus is on creating jobs and diversifying the economy away from oil which will drive growth. But there could be bumps on the road. The Global Competitiveness Report suggests slowing global growth at 2.9 per cent, the lowest since the global financial crisis a decade ago. The report has also highlighted low productivity levels globally despite the $10 trillion stimulus unleashed by central banks since the financial crisis a decade ago. The UAE has what it takes to break into the top 10 on the index. Its strategic location and relatively smaller size make it easier to govern. A nimble and effective government with a commitment to constantly improvise in administration makes the country a business-friendly destination. However, it would be wise to consider global headwinds that could impact the economy.