The UAE is the most competitive country in the Arab world, according to the 2022 IMD World Competitiveness Ranking.
Published every year by the IMD Business School in Switzerland, the study that included 63 countries, placed the UAE in the 12th spot globally, ahead of Luxembourg, Canada, Germany, Iceland and China, among other major economies.
The UAE also emerged as the 8th most competitive economy in Europe, Middle East and Africa, just behind Denmark, Switzerland, Sweden, Netherlands, Finland, Norway and Ireland.
Overall, Denmark landed the first position globally, followed by Switzerland, Singapore, Sweden and Hong Kong in the top five.
The economies included in the study were rated according to several factors, including government, economic and business efficiency, as well as infrastructure.
The UAE was rated highly in government efficiency at 88.31, the third highest in the world. It also earned significant points in business efficiency at 70.98, ranked 17th globally, but scored lower in infrastructure at 62.53, which is ranked 26th globally.
To remain competitive, among the challenges the UAE will have to face this year will be how it can continue the momentum for economic diversification and FDI attraction, according to the IMD report.
Other challenges include increasing investments in sectors such as space, digital economy and renewable energy; equipping the youth with future skills; enhancing R&D outputs across the spectrum to align with levels of investments and UAE ambition; and strengthening economic and societal resilience against global and systemic risks.
(Writing by Cleofe Maceda; editing by Seban Scaria)