Dubai: All six Gulf states have made it to the top 40 in The Global Competitiveness Report 2010-2011 released on Thursday by the World Economic Forum (WEF) with Qatar leading the Middle Eastern countries, taking 17th position.
Saudi Arabia is 21st and the UAE 25th, according to the report.
"Most Gulf countries continue the upward trend displayed in recent years, with all of them now featuring in the top 40 most-competitive economies in the world," WEF said in a statement.
US slips
Switzerland tops the overall ranking for the second year in a row. The United States fell two places to fourth and has been overtaken by Sweden (2nd) and Singapore (3rd).
"In addition to the macroe-conomic imbalances that have been building up over time, there has been a persistent weakening of the United States' public and private institutions, as well as continuing concerns about the state of its financial markets," the statement said.
The Nordic countries continue to be well positioned in the ranking, with Sweden, Finland (7th) and Denmark (9th) among the top 10, and Norway 14th.
"Policy-makers are struggling with ways of managing the present economic challenges while preparing their economies to perform well in a future economic landscape characterised by uncertainty and shifting balances," said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
"In such a global economic environment, it is more important than ever for countries to put into place the fundamentals underpinning economic growth and development," he said.
Hani Al Hameli, Secretary-General of Dubai Economic Council, said, "Achieving a high rank in global competitiveness is not an end in itself, but an indicator of the performance of our various economic sectors. What is required at the current stage is to promote economic policies that promote greater economic stability and confidence in the local market."
The UAE is currently upgrading its trade and economic policies to improve competitiveness. The government is currently revising 12 laws that will boost efficiency.
"Looking ahead, the UAE Government has clearly improved the country's business competitiveness by recognising the importance of business reforms. This has laid the groundwork for future business of growth and job-creation and in return encouraging even more investment in the private sector," Hamad Bu Amim, director-general of Dubai Chamber of Commerce and Industry, told Gulf News.
Abdullah Lootah, Secretary-General of the Emirates Competitiveness Council, said: "The UAE's advanced ranking is a firm indicator of how interdependence and coordination among all sectors help create a competitive environment at a global level."
China improved its position, jumping two places to 27th position. India and Russia were at 51st and 63rd positions respectively. Several Asian economies performed strongly, with Japan (6th), Hong Kong (11th) also in the top 20.
Xavier Sala-i-Martin, Professor of Economics, Columbia University, USA, said, "Amid concerns about the outlook for the global economy, policy-makers must not lose sight of long-term competitiveness fundamentals amid short-term challenges. "A competitiveness-supporting economic environment can help national economies to weather business cycle downturns and ensure that the mechanisms enabling solid economic performance going into the future are in place."
Assessment criteria
The ranking is based on the Global Competitiveness Index (GCI) — on 12 pillars of competitiveness in 139 countries surveyed. The pillars are: institutions, infrastructure, macro-economic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.
"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 Hameli observed.
Top ten
Rank Country Score
1 Switzerland 5.63
2 Sweden 5.56
3 Singapore 5.48
4 US 5.43
5 Germany 5.39
6 Japan 5.37
7 Finland 5.37
8 Netherlands 5.33
9 Denmark 5.32
10 Canada 5.30
Ranking of GCC countries
17 Qatar 5.10
21 Saudi Arabia 4.95
25 UAE 4.89
34 Oman 4.61
35 Kuwait 4.59
37 Bahrain 4.54
Source: WEF Report
