Dubai: The UAE has been ranked 25th in the world in the Global Competitiveness Report issued by the World Economic Forum, the UAE ministry of cabinet affairs said Wednesday.
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, the ministry 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," said Abdullah Lootah, Secretary-General of the Emirates Competitiveness Council.
The UAE was included in the report for the second year in the third and most advanced stage of "innovation-driven economies" which includes the highest-ranking countries. They are classified on the basis of their adoption of factors that promote innovation in economic development and the group includes countries such as Germany, Japan, Sweden, Australia, Canada, the United States, Switzerland, United Kingdom and Singapore, with the UAE being the only Arab country to feature in the group.
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".
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".
The report also ranked 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. UAE maintained the sixth position in "foreign direct investment" and "technology transfer" indicators.
"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," Lootah said.
Fadi Al Saeed, Head of Equities Middle East at ING Investment Management Middle East, said he agreed that the competitive position of the UAE in the global economic environment was "strong".
"The cost of setting up and running businesses has declined, the traffic has eased and the regulations for businesses are better than in other countries of the region," Al Saeed told Gulf News.
Also, the pace of innovation as well as the legislative framework, was better in the UAE than in other regional countries, he added. This had helped the UAE improve as a business destination, Al Said said.
Room for improvement
"However, there is always room for improvement. The country has definitely been affected by the global economic slowdown, but in the long run, the prospects of the UAE are good," he said.
Dubai Chamber of Commerce and Industry director general Hamad Bu Amim said: "The UAE Government has clearly improved the country's business competitiveness by recognising the importance of business reforms, especially geared towards the private sector".
He told Gulf News this had "laid the groundwork for future business of growth and job creation and in return encouraging even more investment in the private sector".
Transparency improves
The UAE has climbed to a far higher rank in the 2009 "Corruption Perceptions Index" issued annually by non-profit organisation Transparency International, an anti-corruption watchdog in Berlin, Germany. The UAE was ranked 30th on the CPI index comprising 180 countries worldwide, with a better score than, for example, Spain, Portugal or Taiwan. The 2009 ranking also shows a significant improvement compared to the 2008 list, where the UAE was ranked in 35th place. The CPI review of the UAE was started by Transparency International in 2003, where the country occupied place 37.
"In the case of the UAE, there have been more high profile cases reported in the past year as well as [there was] a strengthening of the country's Financial Audit Department," the organisation wrote in its commentary to the CPI report. Within the GCC, the UAE ranked two behind Qatar on the CPI list, and before Oman, Bahrain, Saudi Arabia and Kuwait. Countries with the lowest score in the Mideast are Yemen, Iran and Iraq, according to Transparency International's 2009 CPI list.
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