Today's Edition
MOUZA HASAN ALMARZOOQI
The writer is a researcher at TRENDS Research and Advisory
The UAE is steadily moving up the global competitiveness ladder by achieving advanced rankings in key indicators as a result of its economic diversification, innovation, and focus on human development. This progress is reflected in economic performance reports and global indexes, where the UAE has emerged as an attractive destination for global investments and a leading hub for non-oil sectors.
In the 2024 World Competitiveness Report, issued by the International Institute for Management Development (IMD), the UAE advanced three positions to rank seventh worldwide among 67 countries. It also ranked first in 223 indicators, up from 215 in 2023. The country ranked second globally in economic performance, fourth in government efficiency, 10th in business environment efficiency, and 25th in infrastructure.
These advanced achievements are the fruit of an integrated strategy encompassing multiple areas: diversifying exports, promoting economic diversification and sustainability to preserve natural resources for future generations, enhancing education to meet labour market demands, investing in the huge potential of technology and artificial intelligence, addressing climate change, and launching proactive initiatives that support the economic and investment landscape. As a result, the UAE has witnessed significant growth in sectors such as artificial intelligence, clean energy, technology, and tourism.
International organisations expect the UAE to achieve the best economic performance at the level of the GCC countries. According to the World Bank, the country's GDP is expected to grow by 3.9% in 2024 and by 4.1% in 2025. Similarly, the International Monetary Fund (IMF) projects a 4% growth rate for 2024, driven by strong growth in tourism, construction, manufacturing, and financial services.
With regard to government efficiency, the UAE focuses on digital transformation, quality of services, and "zero bureaucracy" to simplify procedures and streamline government operations. The country has adopted digital integration and the use of advanced technology and artificial intelligence to better serve the community. Its goal is to transition all services for individuals, institutions, and companies to fully digital platforms, thereby strengthening its competitiveness in the finance and business sectors.
Foreign Direct Investment (FDI) has increased dramatically, reaching $67.6 billion in 2023, thanks to legislative updates, the creation of the Ministry of Investment, initiatives to stimulate the business environment, and the permitting of full foreign ownership in various sectors.
In addition, visa policies have made the UAE a more attractive destination for expatriates to live and work. Further, given its strategic geographic location and state-of-the-art infrastructure, the UAE ranks among the top countries globally in telecommunications, electricity access, and ICT adoption.
The UAE has also excelled in civil aviation, ranking first globally in the "Quality of Air Transport Infrastructure" indicator of the 2024 "Travel and Tourism Development Index". It also ranked third in both indicators of the "Efficiency of Air Transport Services" and "Available Airline Seat Kilometres – millions/week". The Emirati airline companies and other national carriers are recognised to be among the best in the world.
International organisations' confidence in the UAE's economy stems from its exceptional achievements in an investment and business environment that supports sustained growth, despite the state of uncertainty engulfing the global economy.
This has positioned the UAE at the forefront of key global competitiveness indexes and placed it at the top in economic growth projections for the region in 2024, thanks to its strategies for economic diversification and investments in technology, renewable energy, and financial services. However, the UAE is not satisfied with its current ranking of seventh globally in "Global Competitiveness". Instead, it will continue its steady steps toward the top in the years ahead.
