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Global competitiveness indicators bear testimony to UAE’s economic success

Dubai attracts AED 46.5 billion FDI inflows in H1-2019

The Gulf region is witnessing positive and competitive performance signs each year, with economic indicators reflecting the great efforts exerted at the governmental and private levels to achieve further progress and maintain the accumulated gains of past years under all circumstances.

The robust financial and economic structure of GCC states is reflecting positively on their global rankings, including the Global Competitiveness Index, which is one of the key indicators for evaluating financial, economic and social performance.

Such a global acknowledgement has reflected on the stability of economic performance as a whole and the creation of an investment-conducive and business-friendly environment. This stability has become an effective catalyst for attracting more direct and thoughtful investments across diverse  sectors. Al Mazaya Holding said in its weekly report that the UAE’s great achievements on the Global Competitiveness Index over the recent years were the result of integrated plans and strategies as well as the resilience and elasticity towards new circumstances.

The UAE has also secured a coveted position on The Travel and Tourism Competitiveness Index (TTCI), as well as the World Bank Ease of Doing Business Ranking and the Logistic Performance Index in addition to its advanced ranking on the IMD World Digital Competitiveness Ranking 2019.

Al Mazaya notes that these accumulated achievements are attributed to exceptional economic performance and synergy across all sectors, coupled with comprehensive investment plans. These advanced positions on most of global indicators will bring in a lot of positive results for the state and individuals alike.

According to the Mazaya report, this remarkable investment performance and accumulated positive results shown by economic indicators have led the UAE economy to advanced positions in the past and will continue to do so in the future, according to available industry data.

For example, the UAE ranked 29th in the world and the first in the Gulf on the TTCI. The UAE hotel sector received 25.3 million visitors (local and international) in 2018, with a growth rate of 2.4 per cent. Dubai alone received 15.92 million visitors during the first half of the same year, confirming the industry’s success as a key global destination. The contribution of the tourism sector to the UAE’s GDP is estimated at more than AED 161 billion. By 2027, this percentage is expected to reach 10.6%, equivalent to AED 234 billion. It is expected to attract 21.53 million international tourists by the end of this year, with a growth rate 5% compared to last year.

Al Mazaya considered the direct correlation between performance, investment attractiveness and competitiveness indicators contributed to a new qualitative leap during the first half of this year that manifested itself in AED 46.6 billion FDI inflows to Dubai, making the emirate the third on FDI map with a remarkable growth rate of 135% compared to the same period last year.

Within this context, the country was able to attract FDIs with a total value of $10.4 billion in 2018, accounting for 36% of the total foreign investments inflow into the Arab region.

This success is attributed to growing investor trust in the country’s open and resilient economy, as well as its strong and advanced infrastructure, as a result of the successful economic diversification efforts being exerted over the recent years. The results of the Logistic Performance Index matched the expectations, ambitions and plans implemented in 2018 which resulted in the country’s ranking at 11 in the world.

This means more job opportunities, as the value of the logistics’ sector’s output reached AED219 billion, and the sector’s contribution to GDP is expected to grow by 8% by 2021. Al Mazaya’s report attributes this achievement to the country’s advanced trade and transport infrastructure, and diverse services provided nationwide.

Over and above, the World Expo 2020 Dubai is expected to provide a significant opportunity for the logistics sector. This will also enhance the capacity of SMEs, which accounted for 56% of the contracts concluded so far for the event.

Al Mazaya report sees a lot of potentials for the UAE to attract high-tech projects as well as specialised talent. According to industry data, the growth of high and medium-tech projects reached 47% of the total investment projects during the first half of this year. The UAE also ranked 12th among the most competitive countries in the 2019 Digital Competitiveness Ranking and 9th on “Future Readiness” classification.

The UAE’s position on these global indicators confirms its readiness to deal with variables associated with emergencies in various sectors, thanks to the country’s corporate flexibility in addition to its impressive success in big data investments as well as the successful partnership between the public and private sectors in the management of ongoing opportunities and challenges lying ahead.