UAE Rises to 7th Position in IMD World Competitiveness Ranking 2024
The UAE has ascended three places to secure the seventh position in the IMD World Competitiveness Ranking 2024, published by the World Competitiveness Centre of the Institute for Management Development (IMD) in Switzerland. This milestone reflects the country’s steadfast economic growth, driven by government reforms and significant expansion in non-oil sectors.
Praising the concerted efforts of various work teams, Sheikh Mohammed bin Rashid stated, “The best is yet to come.” The UAE now ranks among the top 10 nations in over 90 competitiveness indicators.
Economic Growth and Projections
The UAE’s economy has shown consistent growth, bolstered by strategic government initiatives and robust development beyond the oil industry. The International Monetary Fund (IMF) forecasts the country’s gross domestic product (GDP) to grow by 4 percent annually in 2024, an increase from the previous projection of 3.5 percent.
GCC Countries’ Progress
Other Gulf Cooperation Council (GCC) countries have also improved their standings in the IMD rankings, which evaluate economic performance, government efficiency, business efficiency, and infrastructure. These rankings consider factors such as macroeconomic stability, fiscal policy, institutional quality, and market openness.
- Qatar: Advanced from 12th to 11th place.
- Saudi Arabia: Moved up from 17th to 16th.
- Bahrain: Climbed four spots to secure the 21st position.
Global Competitiveness Leaders
On a global scale, Singapore reclaimed the top position after three years. Switzerland secured second place, while Denmark ranked third among the 67 economies evaluated.
Future Competitiveness Challenges
Arturo Bris, director of the IMD World Competitiveness Centre, emphasized that the most competitive future economies will be those that can anticipate and adapt to the evolving global context, while creating value and well-being for their citizens in a sustainable manner. He identified key challenges for 2024 and beyond, including transitioning to a low-carbon and circular economy, integrating emerging markets into the global economy, and keeping pace with digital transformation.
Influential Trends and Business Challenges
The report highlighted three major trends impacting businesses in 2024: the adoption of artificial intelligence (AI), the risk of a global economic slowdown, and geopolitical conflicts. One significant challenge for companies is implementing AI systems that enhance efficiency without disrupting operations. Additionally, ensuring the accuracy of AI systems is crucial, as inaccuracies can lead to inefficiencies and reduced productivity.
Environmental Considerations
According to the report, 27 percent of surveyed executives consider the shift to zero emissions a critical short-term trend, yet only 12.2 percent regard the impact of global warming as immediately relevant. The report urges executives to balance short-term priorities with long-term environmental risks, which are already affecting the global landscape.
Emerging Markets on the Rise
Emerging markets have also made notable advancements:
- China: Moved up seven places to 14th.
- India: Inched up one spot to 39th.
These countries offer new opportunities and markets for businesses and consumers, but they also introduce new risks and uncertainties.
In conclusion, the UAE’s rise in the IMD World Competitiveness Ranking is a testament to its dynamic economic policies and strategic reforms, positioning it as a leading global competitor.
