Browse
related articles
The UAE has been ranked among the top 10 countries in more than 18 indicators of competitiveness globally, and has reached an advanced position among the 139 countries assessed by the report.
Quality of infrastructure
The UAE ranked third in the world for 'quality of infrastructure,' three positions ahead of its classification in last year's report, and also ranked third in 'government provision of high-technology products.'
Stability
The UAE ranks fourth in the world with regards to 'stability, security and its association with a positive business environment' and 'quality of infrastructure for air transport.'
Goods market efficiency
The report also ranks the UAE sixth in the world with respect to 'goods market efficiency', four positions ahead of last year's classification, and sixth in the world on the 'quality of road infrastructure,' advancing from seventh position in last year's report.
Foreign direct investment and technology transfer
UAE maintained the sixth position in 'foreign direct investment' and 'technology transfer' indicators.
The Global Competitiveness Report issued by the World Economic Forum assesses the competitiveness of each country on the basis of certain indicators organised into 12 pillars, with each pillar representing an area considered as an important determinant of competitiveness.
The 12 pillars include:
• Institutions,
• Infrastructure,
• Macroeconomic stability,
• Health and primary education,
• Higher education and training,
• Goods market efficiency,
• Labour market efficiency,
• Financial market sophistication,
• Technological readiness,
• Market size,
• Business sophistication and
• Innovation
Commenting on the UAE ranking in the Global Competitiveness Report 2010 - 2011, Abdullah Lootah, Secretary-General of the Emirates Competitiveness Council, said,
"The UAE continues its efforts to achieve sustainable development through the setting up of appropriate legislative frameworks and the provision of developed infrastructure that will further enhance the country's status as a regional and global destination for investments."
"The Emirates Competitiveness Council will review the results of the report and research indicators considered, and will involve the public and private sectors in discussions aimed at finding mechanisms to improve the functioning of the various vital sectors in the state."
"The UAE's ability to secure an advanced ranking, regionally and globally, with respect to the quality of infrastructure, the government's provision of high-technology products and other variables is a result of the UAE government's commitment to the development of infrastructure and building new economic sectors based on innovation. The UAE's advanced ranking is also considered a firm indicator of how interdependence and coordination among all sectors in the country help create a competitive environment at a global level."
According to Lootah, the report recorded relegation on some indicators, which was due to the fact that no new laws related to business and foreign investment have been issued and that the global challenges were not adequately addressed through the issuance of laws that deal directly with aspects of insolvency and bankruptcy.
"The Emirates Competitiveness Council continues its communication with government agencies and the private sector through workshops and meetings, to help coordinate efforts and discuss ways to enhance the competitiveness of the state in areas of governance, the regulatory environment for business and other areas. This will enable the UAE to achieve a global ranking that matches the country's aspirations and its leaders' vision to become one of the world's most competitive countries," Lootah concluded.
The Global Competitiveness Report assesses and ranks countries according to the Global Competitiveness Index.
The GCI separates countries into three specific stages:
• factor-driven,
• efficiency-driven and
• innovation-driven,
each implying a growing degree of complexity in the operation of the economy.
The first stage (factor-driven) includes a number of developing countries such as Nigeria, Chad and Zimbabwe.
The transitional phase between the first and second stages includes the largest number of Arab countries, including Algeria, Saudi Arabia, Egypt, Kuwait, Qatar and Syria.
The second phase (efficiency-driven) includes countries currently in a stage of enhancing their economic effectiveness, such as Argentina, Bulgaria, Colombia, Jordan and Lebanon.
The transitional phase between the second and the third stage includes a large number of Eastern European nations who are currently seeking to follow in the footsteps of the world's most advanced countries.
The third stage (innovation-driven), is the highest ranking stage and includes the world's most advanced countries, who compete and promote innovation.
The third stage includes developed countries such as Germany, Japan, Sweden, Australia, Canada, the United States, Switzerland, the United Kingdom, Singapore and the UAE - the only Arab country to feature in this stage.
"Achieving a high rank in global competitiveness is not an end in itself, but an indicator of the performance of our various economic sectors and an opportunity to compare this performance with other economies, in order to gauge the status of the national economy at a global level," said Hani Rashid Al Hamli, Secretary-General of Dubai Economic Council.
He stressed that the ultimate goal of competitiveness is to raise the rate of economic growth to a level that ensures high rates of social and economic welfare for the members of the community, which is the ultimate goal of any economic system.
Al Hamli then presented an analytical look at the results revealed by the Global Competitiveness Report.
He began by pointing out that the slight change in the UAE's ranking in global competitiveness does not necessarily reflect a decline in growth rates or overall economic performance, but reflects changes in the positions of countries with regard to global competitiveness.
Moreover, local and international reports confirm that the performance of the economy of the UAE, represented by the growth rate, has improved significantly during the first half of 2010 when compared to last year.
The UAE was able to rise eight positions in the global competitiveness ranking in 2009, compared with its position in 2008.
"What is required at the current stage is to promote economic policies that promote greater economic stability and confidence in the local market," Al Hamli said.
He added that the requirement of confidence is a critical factor in allowing the continuance of growth in difficult times, as evidenced during the recently witnessed global financial and economic crisis.
He stressed that the goal of establishing confidence in the national economy calls for the review and periodic evaluation of the extent of positive effects enabled by economic stimulus policies, and the various measures taken by the state at both federal and local levels to stimulate the economic cycle, with the aim of boosting investment and production and thereby increasing employment rates.
Al Hamli concludes: "It is incorrect to talk about competitiveness without considering the essential elements of education and scientific research, as these factors provide the foundation of innovation, which in turn is responsible for any required leaps in the economic process."
Al Hamli recommended that every effort should be made to achieve the vision of the UAE's wise leadership, which is to shift to a knowledge-based economy and support the efforts of research and development in various sectors and activities, in order to enhance the availability of competitive local products in the international markets.
Posted by Rima Ali Al Mashni
