Dubai: The world competitiveness ranking this year once again showed a strong correlation between business efficiency and competitiveness although the overall ranking reflects more than 300 criteria.
The linkages are clearly evident as nine countries from the top 10 are also listed in the top 10 of the business efficiency factor.
Business efficiency focuses on the extent to which the national environment encourages enterprises to perform in an innovative, profitable and responsible manner. It is assessed through indicators related to productivity such as the labour market, finance, management practices and the attitudes and values that characterise the business environment.
“Simply put, business efficiency requires greater productivity and the competitiveness of countries is greatly linked to the ability of enterprises to remain profitable over time,” said Professor Arturo Bris, Director of the IMD World Competitiveness Center. “Increasing productivity remains a fundamental challenge for all countries.”
In this year’s ranking Luxembourg experiences one of the largest gains in this factor (14 to 4) which greatly contributes to its ascendancy in the ranking. Qatar’s improvement (19 to 13) in the ranking largely reflects its recovering in terms of the business efficiency factor (24 to 11) due to increases in its overall productivity. Greece’s recovery (57 to 50) also comes on a strong performance in business efficiency in which it increases from 54 to 43. The UAE’s drop (8 to 12) in the ranking is partly the result of lower scores (15 to 18) in the business factor. Similarly, Germany’s retreat (6 to 10) is a reflection of its fall in business efficiency (9 to 16).
