ID :
121035
Sun, 05/09/2010 - 14:05
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https://oananews.org//node/121035
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UAE to maintain competitive edge: WEF
Abu Dhabi, May 9, 2010 (WAM)- Ongoing reforms and heavy capital spending will strengthen the UAE economy and allow it to maintain its competitive edge in the long term, according to the World Economic Forum (WEF), Emirates Business reported.
Despite lower oil prices and a sharp rise in its public debt, the UAE already has the potential of a competitive economy as it has largely improved its ranking in the WEF's Global Competitiveness Index (GCI), the Swiss-based WEF said in its 2009-2010 report on more than 150 countries worldwide.
The report on the Middle East was analysed this week by the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC), which said Qatar and the UAE topped the list of Arab nations in that index.
The report showed Qatar, one of the wealthiest nations, moved to the 22nd place in the 2009-2010 Index from the 25th rank in the previous index. The UAE, the second largest Arab economy, was upgraded to the 23rd position from 31st, according to IAIGC, a key Arab League establishment.
"The UAE occupies the 23rd position in this year's report and second in the region, building on the positive trend of the past few years… notwithstanding the current cyclical downturn, the available data suggest that the UAE has in place the underlying fundamentals of a competitive economy," WEF said. "The consistent upgrading of institutions and infrastructure and rising technological readiness and innovative capacity over the past few years will help the UAE maintain its competitive edge in the longer term."
The Index, which measures the competitiveness of nations in terms of attracting capital as well as fiscal and economic performance, showed the UAE was ranked ninth in the Index's "basic requirements" subcategory, which covers domestic institutions, infrastructure, macroeconomic stability, and health and primary education. It was ranked 21st in the "efficiency enhancers" category, which involves higher education and training, goods market efficiency, labour market efficiency, financial market sophistication, technological readiness and market size. The UAE was also in the 25th place in the "innovation and sophistication factors", which includes business sophistication and innovation.
"The lower score in macroeconomic stability due to rising public debt and lower budget surplus is in line with most other countries' results in this pillar and therefore does not lead to significant changes in the ranking," WEF said.
"As the downturn continues to limit the availability of finance and reduces tourism and trade, the country's main sectors of activity are likely to be adversely affected.
"However, in spite of the fall in real estate prices, the assessment of its financial markets so far proves more resilient than for many other countries. The UAE has improved by eight positions to 33rd in this pillar, although the score has gone down. However, businesses assess banks as somewhat less sound than previously."
WEF said the intensifying competition in goods markets in the UAE could have positive effects on the country's development path.
Despite lower oil prices and a sharp rise in its public debt, the UAE already has the potential of a competitive economy as it has largely improved its ranking in the WEF's Global Competitiveness Index (GCI), the Swiss-based WEF said in its 2009-2010 report on more than 150 countries worldwide.
The report on the Middle East was analysed this week by the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC), which said Qatar and the UAE topped the list of Arab nations in that index.
The report showed Qatar, one of the wealthiest nations, moved to the 22nd place in the 2009-2010 Index from the 25th rank in the previous index. The UAE, the second largest Arab economy, was upgraded to the 23rd position from 31st, according to IAIGC, a key Arab League establishment.
"The UAE occupies the 23rd position in this year's report and second in the region, building on the positive trend of the past few years… notwithstanding the current cyclical downturn, the available data suggest that the UAE has in place the underlying fundamentals of a competitive economy," WEF said. "The consistent upgrading of institutions and infrastructure and rising technological readiness and innovative capacity over the past few years will help the UAE maintain its competitive edge in the longer term."
The Index, which measures the competitiveness of nations in terms of attracting capital as well as fiscal and economic performance, showed the UAE was ranked ninth in the Index's "basic requirements" subcategory, which covers domestic institutions, infrastructure, macroeconomic stability, and health and primary education. It was ranked 21st in the "efficiency enhancers" category, which involves higher education and training, goods market efficiency, labour market efficiency, financial market sophistication, technological readiness and market size. The UAE was also in the 25th place in the "innovation and sophistication factors", which includes business sophistication and innovation.
"The lower score in macroeconomic stability due to rising public debt and lower budget surplus is in line with most other countries' results in this pillar and therefore does not lead to significant changes in the ranking," WEF said.
"As the downturn continues to limit the availability of finance and reduces tourism and trade, the country's main sectors of activity are likely to be adversely affected.
"However, in spite of the fall in real estate prices, the assessment of its financial markets so far proves more resilient than for many other countries. The UAE has improved by eight positions to 33rd in this pillar, although the score has gone down. However, businesses assess banks as somewhat less sound than previously."
WEF said the intensifying competition in goods markets in the UAE could have positive effects on the country's development path.
