Dubai ranked 6th for global economic performance, could do better!

This achievement was so remarkable that some readers emailed AME Info suggesting that Dubai was making it up. But far from it, the Swiss business school IMD has a global reputation of its own to protect, and unveiled its findings to a meeting of top Dubai business leaders, presenting them with a 360-page report to take home.

The IMD takes its competitiveness study very seriously, and more than 300 components of competitiveness are examined in minute detail to arrive at its rankings. Dubai was placed 17th in its overall competitiveness ranking, which is comprised of four main factors: economic performance, government efficiency, business efficiency and infrastructure.

The success of Dubai in coming 6th for economic performance was dragged down by lesser showings in the other categories: government efficiency 9th; business efficiency 21st; and infrastructure, which includes health and education, 32nd.

Human resources weak

Officials from the IMD explained that Dubai's main weakness is focused in human resources, with education and training a major minus. This is reflected in low productivity in almost all areas of the economy, particularly in industry, and a poor score for management skills.

However, the good news for Dubai is that even with a ranking of 6th in the world for economic performance, there is considerable room for improvement in other factors that are likely to boost the emirate's position in the league table of overall competitiveness.

The IMD study makes some clear recommendations: more value added activities; the development of small and medium sized enterprises; creating a first class infrastructure that will also be cost effective and technologically advanced; the development of education and science; and the promotion of Emiratisation through training rather than job placements.

No1 for tourism

For an emirate that has become the number one for tourism as a percentage of GDP over the past decade, these are challenges which the Dubai Government is already embracing. The level of investment in infrastructure - from airports to real estate - and the explosion of education institutions are already apparent.

But doubtless planners will now study this massive report in depth and draw some new conclusions. The expatriate economy that is Dubai today has its strengths such as zero unemployment and a flexible labor force, and a tax free environment for investors and workers. These are economic fundamentals that can be built on.

Indeed, with more than $200 billion of projects underway in an economy with a GDP of $32 billion nobody could really accuse Dubai of resting on its success, and the emirate looks unlikely to remain at 17th in the league of global competitiveness for very long.