UAE retains 15th spot in investment climate ranking

Dubai: The UAE's ranking in a survey of economic freedom slipped in 2005 after its labour market regulations score declined, but it still ranked 15th in the world based on a favourable investment climate.

The 2007 report by Canada's Fraser Institute ranks 141 countries based on 42 criteria of how well they encourage freedom in economic polices such as tax rates, property laws, labour laws and government interference.

Score

The UAE scored 7.7 points out of 10 in the survey compared with 7.8 points in the previous year as its labour regulations' score declined to 6.6 points from 8.9 points.

The UAE outranked three fellow Arab states in the survey, which did not include Saudi Arabia. Oman, Kuwait and Bahrain ranked 18th, 32nd and 44th place, respectively.

Gulf economies, of which the UAE is the most open to foreign investment, have surged on a tripling in oil prices in the last five years, encouraging regional and global companies, especially in financial services, to expand their presence.

Hong Kong, Singapore and New Zealand were first, second and third on the index, with scores of 8.9, 8.8 and 8.5, respectively.

Dubai has attracted investment by setting up tax-free zones, including a financial services business park. It also opened up it real estate sector to foreign investment in 2002.

The UAE came in fifth place globally in the 'freedom to trade internationally' category, compared with ranks of 18 and 25 in Germany and the US, respectively.

Several UAE banksget upgrade

EFG-Hermes made rating changes on several UAE banks and said almost all of the banks have appreciated significantly since it began coverage in December 2006.

The investment bank upgraded Abu Dhabi Commercial Bank to 'neutral' from 'reduce'. It also raised its short-term rating on First Gulf Bank to 'accumulate' while maintaining its long-term rating of 'accumulate'.

National Bank of Dubai was upgraded to 'buy' by EFG, while Abu Dhabi Islamic Bank's short-term rating was raised to 'buy.