The Arab Monetary Fund (AMF) has released its latest Arab Economic Competitiveness Index, affirming the United Arab Emirates (UAE) as the leading economic powerhouse in the Arab world. The UAE’s exceptional performance, as highlighted in the seventh edition of the AMF’s Arab Economic Competitiveness Report, is a testament to its continuous advancements across vital sectors. These include its robust overall UAE economy, increasingly attractive investment environment, and growing allure.
The report emphasizes that the UAE has secured the top position in the government financial sector index. It ranks first in the deficit/surplus to GDP ratio and second in the tax burden index.
Furthermore, the report highlights that the UAE claims the first place among Arab countries in terms of investment environment and attractiveness. It leads the economic freedom index, exhibiting an advanced standing in all sub-indices.
In the infrastructure sector, the UAE takes the lead, excelling in mobile phone subscriptions and the percentage of the population with access to electricity. The nation secures the second position in the share of air transport and shipping concerning total global transport and shipping.
Read more: The UAE excels in transforming and building smart cities
Institutional excellence
Regarding institutional and good governance sectors, the UAE emerges as the top performer among Arab nations, achieving advanced rankings in both the administrative corruption and government efficiency indices.
The AMF report underscores the adoption of multiple national strategies and visions by many Arab countries to enhance productivity, improve the efficiency of produced goods, and focus on productive sectors. These efforts aim to develop service sectors, facilitate business environments, and enhance infrastructure, tackling challenges that impede competitiveness.
At the core of these national endeavors lies a shared ambition: achieving economic stability, sustainable growth, and improved living standards for Arab citizens. The strategies encompass a diverse toolkit, including propelling investments in local industries and fostering attractive business environments for foreign capital.
Acknowledging the importance of skilled citizens
Recognizing the pivotal role of skilled citizens, Arab countries are making significant investments in education and workforce training. The goal is to equip the workforce with the necessary expertise to thrive in productive sectors and service industries. Simultaneously, large-scale infrastructure projects are transforming transport networks, port facilities, and logistics services, empowering these nations to compete globally.
Moreover, the AMF report anticipates that enhancing economic competitiveness and productivity will contribute to the diversification of Arab economies, create employment opportunities, foster sustainable economic development, and elevate the living standards of citizens.
Non-oil private sector economy in UAE reaches four-year high
Business activity in the non-oil private sector economy of the UAE reached its highest level in over four years in December. This surge was driven by a significant increase in output and new orders, setting the stage for continued expansion throughout the year.
According to the seasonally adjusted S&P Global purchasing managers’ index (PMI), a key indicator of the nation’s non-oil economy, it climbed to 57.4 in December, up from 57 in November. This marks the highest level since mid-2019 and places the index well above the neutral 50 mark, which signifies growth rather than contraction.
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