UAE’s achievement hailed
RAPID DEVELOPMENT OF INFRASTRUCTURE AND STRONG FOREIGN INVESTMENT POLICIES WILL CONTINUE TO DRIVE GROWTH
The UAE will continue to be a leading competitive economy in the coming years, analysts say, largely driven by the development of infrastructure and foreign investment policies.
The UAE ranked 12th in the World Economic Forum’s ( WEF) Global Competitiveness Report for 2014- 15, released on Tuesday, up from 19th place a year ago. The report ranks 114 economies on their competitiveness. The UAE was ranked first among other Middle East and North Africa nations, and ahead of the likes of Canada and Denmark.
Sultan Saeed Al Mansouri, the UAE’s minister of economy, said that the UAE is amodel “in the areas of politics, economy and development.”
Meanwhile, Suhail Bin Mohammad Al Mazroui, minister of energy, said that the UAE’s competitiveness ranking is a source of pride for every Emirati and a testimony to the prominent place the UAE occupies in the international community.
“The UAE has joined the club of advanced countries in terms of investment in human resources and other areas,” he stated, in a WAM report.
Shady Shaher, senior economist for the Middle East and North Africa at Standard Chartered, said the UAE’s developed infrastructure and its commitment to business- friendly policies will strengthen its position as a regional economic force.
“Given the UAE’s position as a regional hub, we expect policymakers to continue to take the needed steps that will see the UAE hold on to its achievements, and further advance along the rankings,” he said.
Nasser Saidi, founder and president of Nasser Saidi and Associates, an economic advisory and consulting company, expects the UAE’s macroeconomic stability to continue.
“The 2009 and 2010 crisis is over. The UAE has managed associated risk and debt situation well. I don’t expect any challenges to macroeconomic stability,” he said. He expects infrastructure and logistics to continue improving and inflation to remain low.
For the UAE to become increasingly competitive, it has to invest in the infrastructure and human capital needed for new sectors, such as robotics and aerospace, according to Saidi.
In Tuesday’s WEF report, the UAE ranked first globally with the lowest rate of inflation and absence of organised crime; third for infrastructure, efficient goods market, and strong public trust in politicians; fifth for its strong macroeconomic environment and high government efficiency; and sixth for higher education and training.
Additionally, the country took the seventh spot for institutions, eighth for labour market efficiency, 14th for business sophistication, 17th for financial market development, 24th for technological readiness and innovation, and 38th for health and primary education.
The report ranks countries based on three sub- indexes in relationship to their state of economic development.
The UAE ranked second in ‘ basic requirements’ that included institutions, infrastructure, macroeconomic environment, health and primary education.
It ranked 14th in the second sub- index, which looks at higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, and market size.
The UAE ranked 21st in the third sub- index, which looks at business sophistication and innovation.