Qatar overtake the UAE as Middle East’s most competitive economy

Qatar has been named as the most competitive economy in the Middle East according to the latest World Competitiveness Ranking from the IMD World Competitiveness Centre.

Qatar held on to its position of 13th in the table, making it the highest Middle East country in this year’s rankings.

The UAE fell three places behind Qatar’s unchanged 13th position in the table, from 12th to 15th.

“The common pattern among all of the countries in the top 20 is their focus on business-friendly regulation, physical and intangible infrastructure and inclusive institutions,” Professor Arturo Bris, director of the IMD World Competitiveness Centre, said.

Other Middle East countries included Turkey in 38th and Jordan at 52, while other major Middle East economies, such as Saudi Arabia, Egypt and Iran are not included in the rankings, which covers 61 economies around the world.

The United States also surrendered its spot after being overtaken by Hong Kong and Switzerland.

“The US still boasts the best economic performance in the world, but there’re many other factors that we take into account when assessing competitiveness,” Bris added.

The 2016 edition ranks Hong Kong first, Switzerland second and the US third, with Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada completing the top 10.

Professor Bris said: “One important fact that the ranking makes clear year after year is that current economic growth is by no means a guarantee of future competitiveness.

“Nations as different as China and Qatar fare very well in terms of economic performance, but they remain weak in other pillars such as government efficiency and infrastructure.”

Data gathered since the first ranking was published more than 25 years ago also lend weight to fears that the rich are getting richer and the poor poorer, said Bris.

Qatar is currently undertaking large development plans within the oil-rich Gulf state, much of it linked to its hosting of the 2022 World Cup.

Hassan al Thawadi, secretary general of the Supreme Committee for Delivery and Legacy for Qatar 2022, had announced at Chatham House in London that $150bn to $200bn is being spent on infrastructure-related developments in the country, with $8bn to $10bn allocated to football stadiums.

Courtesy: arabianbusiness.com