The UAE is ranked just below the United States and France on the Growth Promise Indicators (GPI) index, which grades 180 countries based on economic stability, infrastructure and human capital.

The GPI report, developed by KPMG, is widely seen as a reference guide for investors to make strategic and long-term decisions about where to locate key businesses and operations.

While Asia and Europe account for the top 10 places, with Switzerland in first place, followed by the Netherlands and Singapore, the UAE has moved up four places to 22nd position due to advances in infrastructure, mainly transport.

The UAE also tops the Middle East in the ranking, while Qatar is ranked 48; Bahrain, 57; and Saudi Arabia, 63.

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Ramachandran Narayanan, Partner and Head of Advisory at KPMG in Bahrain said: “The index showcases that top performing countries globally that have been able to lay the foundations for solid growth are the ones to follow. Smaller nations, such as South Korea and the UAE, are also moving quickly up the rankings, while developing economies are often making progress faster than their developed counterparts."

While UAE has been credited for advances in infrastructure, particularly, transportation, the report notes that as countries seek to accelerate (or revive) their transport infrastructure improvements, there will be significant investment opportunities, both direct and indirect.

According to the GPI report, improving access to markets through better-quality transport will become an ever-more crucial ingredient in economic success. As globalisation continues, countries hampered by poor transport links will struggle to compete.

Yael Selfin, Chief Economist at KPMG in the UK and author of the report concluded: “Globally, many countries still lag behind on important indicators, such as the transparency of policymaking and the quality of regulation. As we highlight, this is one area where improvements can trigger wider changes that lay the groundwork for future growth.”

(Reporting by Seban Scaria, editing by Daniel Luiz)

(seban.scaria@refinitiv.com)

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