UAE ranks among top 30 most competitive nations in the world
The UAE has ranked 27th out of 140 countries in the latest Global Competitiveness report issued by the World Economic Forum ( WEF) – the highest in the Middle East region.
The country had an overall score of 73.4 out of 100. It ranked 27th out of 135 countries in the 2017 edition – according to a comparison tool on the WEF website.
The Geneva-based organisation, which assessed economies across 98 different indicators, added new metrics to its 2018 rankings such as workforce diversity and press freedom.
The report focuses on 12 main drivers of productivity including – institutions, infrastructure; technological readiness; macroeconomic context; health; education and skills; product market; labour market; financial system; market size; business dynamism and innovation. The UAE economy’s main strength lies in the “quality of its enabling environment, as companies can operate under stable macroeconomic conditions (first), make use of good infrastructure (15th) and one of the highest levels of ICT adoption in the world (sixth)”, the report stated.
In all of these areas, the UAE is either at the global frontier or less than 20 points away from it.
“Sizeable investments in technological readiness have yet to fully turn into increased innovation capability, where the country lags further behind, ranking 35th globally and at only half the theoretical global frontier. The quality of the country’s human capital remains a key constraining factor, with the current workforce having on average less than 10 years of schooling and the labour market still characterised by inefficient use of the available pool of talent,” it added.
The report urged the UAE to continue adopting reforms to spur business dynamism and increase the efficiency of product markets, particularly in the service sector.
“Recent improvements of the insolvency framework represent a positive step in this direction,” it said.
Meanwhile Saudi Arabia ranked in 39th position with a score of 67.5 out of 100.