The United Arab Emirates has emerged as a leader in global competitiveness, not only surpassing its Gulf Cooperation Council peers but achieving significant rankings compared to established powers like the U.S. and UK. With forward-thinking policies, strategic investments, and a business-friendly environment, the UAE has positioned itself as a dynamic hub for innovation, trade, and global connectivity, and is well positioned to become the best at what it does. In 2024, the International Institute for Management Development named the UAE the most economically competitive country in the Middle East while the GCC continue to reduce their dependence on oil revenues.
How does the UAE compare with the U.S. and UK?
The Ease of Doing Business: The UAE
Besides it’s comparative advantage, with the U.S. and UK, the success of the UAE has a lot to do with the ease of doing business. The UAE has some of the most business-friendly regulations, with free trade zones, low tax policies, and streamlined business setup procedures. This stands in stark contrast to the bureaucratic hurdles often found in other regions, including parts of the U.S. and UK, with significant legal and fiscal barriers to entry in sectors such as real estate and tech.
Economic Diversification
Unlike many oil-dependent economies, the UAE has made significant strides in diversifying, otherwise allocating resources, investments, or activities, across different areas to reduce risk and increase resilience amongst it’s income sources. Key sectors such as technology, renewable energy, healthcare, and tourism have received major investment. Notable initiatives include ‘Dubai’s Expo 2020 legacy projects’ and Abu Dhabi’s focus on renewable energy through ‘Masdar City.’
World-Class Infrastructure
From world-class airports to advanced telecommunications, the UAE’s infrastructure is among the best in the world, with the country creating unique exhibits and places that are unlike any other country, thereby showing its uniqueness and excellence, as well as good marketing, where people flock to just appreciate the unique blend of modernism, Arabian architecture, and inclusivity. According to IMD, the country scores highly in physical and digital connectivity in turn highlighting its global competitiveness. Investments in smart cities and advanced technologies further cement its status as a leader in innovation.
Attracting and Developing Talent
The UAE has implemented progressive visa policies such as the Golden Visa program to attract the best global talent. These policies target professionals, entrepreneurs, and investors, ensuring a steady flow of knowledge that strengthens the country’s workforce. Additionally, partnerships with leading universities have improved access to quality education, helping to develop its own talent pool. Already, education in the Emirates is starting to gain popularity on par with the U.S. and national partnerships with the Sorbonne, in Paris, are taking hold. The UAE has established itself as a beacon of progress in an ever-changing world that is already difficult to leapfrog.
