Dubai: The UAE and Qatar have been ranked among the world’s top 15 most competitive economies, while no other GCC country made it on the World Competitiveness Ranking of 61 countries by IMD World Competitiveness Centre, a research group within IMD business school.
While Qatar maintained its position at 13th overall, the UAE’s ranking slipped three places from 12 last year to 15 this year.
The rankings this year came up with a few surprises, including the US economy losing its number one position to Hong Kong and moving down to third overall, below Switzerland.
“The ranking this year showed that the sheer power of the US economy is no longer sufficient to keep it at the top of the World Competitiveness Ranking, which it has led for the past three years,” the IMD World Competitiveness Centre, said in a statement.
Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada made up the rest of the top 10.
“A consistent commitment to a favourable business environment was central to China Hong Kong’s rise and that Switzerland’s small size and its emphasis on a commitment to quality have allowed it to react quickly to keep its economy on top,” said Professor Arturo Bris, director of the IMD World Competitiveness Centre.
A leading banking and financial centre, China Hong Kong encourages innovation through low and simple taxation and imposes no restrictions on capital flows into or out of the territory. It also offers a gateway for foreign direct investment in China Mainland, the world’s newest economic superpower, and enables businesses there to access global capital markets.
Hong Kong and Singapore aside, however, the research suggests Asia’s competitiveness has declined markedly overall since the publication of last year’s ranking. Taiwan, Malaysia, Korea Republic, and Indonesia have all suffered significant falls from their 2015 positions, while China Mainland declined only narrowly retaining its place in the top 25.
“The USA still boasts the best economic performance in the world, but there are many other factors that we take into account when assessing competitiveness,” he said.
The study reveals some of the most impressive strides in Europe have been made by countries in the East, chief among them Latvia, the Slovak Republic and Slovenia. Western European economies have also continued to improve, with researchers highlighting the ongoing post-financial-crisis recovery of the public sector as a key driver.
“The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions,” said Prof Bris.
While 36th-placed Chile is the sole Latin American nation outside the bottom 20, Argentina, in 55th, is the only country in the region to have improved on its 2015 position.
