Today's Edition
RABI HAMAMSAH (ABU DHABI)
For the fourth year in a row, Dubai maintains its top spot in the MENA region on Kearney's Global Cities Index, securing 24th place worldwide and staying in the top 25. Abu Dhabi and Dubai both ranked highest globally for Ease of Entry, a new measure in the Human Capital dimension, highlighting their achievement in attracting and keeping foreign talent.
Kearney's yearly Global Cities Report, which includes the Global Cities Index (GCI) and Global Cities Outlook (GCO), aims to assess and examine the international connectivity and global significance of the most influential metropolitan areas in the world.
In general, Middle Eastern cities maintained their scores this year, showing better results in the Global Services Firms category within the Business Activity dimension, demonstrating a significant effort in the GCC region to develop more varied economies.
Index of Global Cities
The aim of the GCI is to measure how well a city can draw in, keep, and produce worldwide streams of capital, individuals, and concepts. Cities are assessed based on five main factors: Human Capital, Information Exchange, Cultural Experience, Political Engagement, and Business Activity.
Dubai, Abu Dhabi, Riyadh, and Dammam showed flexibility amid worldwide economic and geopolitical obstacles. Dammam saw a substantial improvement of 19 positions in Business Activity, mainly due to a 71% growth in its services industry, including the entry of five major global services companies. This highlights the increasing significance of services, especially in the GCC region, where prioritising economic diversification is crucial.
Abu Dhabi and Dubai took the top spot in the latest Ease of Entry ranking due to their welcoming immigration policies to attract talent, while Riyadh significantly improved its position in the Unicorn companies ranking.
“Our analysis shows a new form of globalisation emerging – one that is more distributed and networked, and highly uncertain in the near term. As patterns of global trade and capital flows shift, cities in the Middle East have enormous opportunity to leverage their strategic location, robust economies, attractive immigration policies, and underlying digital infrastructure to not only mitigate risks, but also propel economic growth,” said Rudolph Lohmeyer, Kearney Partner, National Transformations Institute.
Outlook for Global Cities
The goal of the GCO is to pinpoint cities with the highest potential for becoming globally significant in the future. Individuals who consistently prioritise security, stability, health, and environment are well-placed to withstand ongoing economic shocks.
Many cities have been able to maintain innovation, particularly in producing patents and drawing in private investment, despite worldwide trade disputes and a decrease in foreign direct investment, the report said.
Furthermore, companies with moderate capital costs and advanced digital infrastructure have been able to attract investments and stimulate economic growth, despite global uncertainty.
In the Middle East, Dubai, Makkah, and Muscat have showcased these patterns. Dubai experienced a 10-rank boost in Innovation, while Makkah improved by 8 ranks and Muscat increased by 11 ranks, mainly due to advancements in Private Investments. These cities have seen advantages by being able to keep real interest rates low and encourage growth in the private market, while also pursuing ambitious economic diversification plans.
Their emphasis on creativity and financial stability has established them as major participants in the global economy, even in the face of difficult global economic conditions.
Cities Designed for Sustainability
Although global cities have adjusted to geoeconomic pressures, they are also confronted with increasing environmental challenges heightened by climate change. Climate disasters have led to substantial economic losses, with cities playing a dual role as victims of and contributors to these problems due to their high energy consumption and greenhouse gas emissions.
Cities are making strong efforts to tackle sustainability and climate change issues, but frequently these efforts are only addressing isolated symptoms rather than comprehensive solutions. Cities need to change their mindset to focus more on being proactive and systems-oriented. This can be achieved with a regenerative strategy, which emphasises developing institutional abilities and preparedness to tackle current and future challenges in a comprehensive manner, and for the advantage of all, stated Sascha Treppte, Partner at Kearney Middle East and Africa.
