UAE the best Arab country for growth prospects
The UAE ranked 22nd among 180 countries
The UAE is the best country in terms of growth prospects. Also, it is interesting to note that in this case, the UAE was even better than China, India and South Korea. This was based on a new report released on Monday.
According to Growth Promise Indicators (GPI) 2019, the UAE has jumped to 22nd place among 180 countries. This position has been mainly due to infrastructure development, especially in transport and human development.
The ranking has been on the basis of some important factors. For instance, quality of infrastructure and institutions, openness, macro-economic stability, and human development are the main ones.
According to the KPMG data, the score of the UAE has improved year-on-year except in terms of quality of institutions. Besides, in terms of macroeconomic stability, The UAE has scored even higher than Norway and Sweden. The ranking shows countries progress based on their national debt level and budget deficit.
According to Vikas Papriwal, head of advisory at KPMG, the progress of the UAE is the result of developing infrastructure and diversifying the economy.
Also, Atik Munshi, senior partner at Crowe UAE, has said the current position of the UAE has been due to thorough efforts that the UAE government has done.
Besides, he believes that the UAE is likely to be among top 20 countries next year. This will happen due to the political stability, excellent infrastructure and happiness initiative and also tax-free income.
Moreover, the GPI report by KPMG showed that a country with a strong workforce is more likely to grow quickly.
The UAE is among those countries with a strong workforce. This is mainly due to the easy access to labor empowering the economy as it expands. As well as this, the right skills and knowledge of the manpower accelerate growth.
Yael Selfin, a chief economist at KPMG in the UK, said the stable institutions and their impact on improving sustainable economic growth is of great importance.
He also pointed out the prominent progress of smaller nations compared to developed countries. For instance, he has said that some small countries South Korea and the UAE have made progress much quicker than developed countries. The main reason for this progress is being able to lay the foundations for growth.
In the region, Qatar, Oman, Bahrain, Saudi Arabia and Kuwait are after the UAE.
Also, it is interesting to note that Switzerland sits high among 180 countries in terms of growth prospects. Among the top 10 countries, Luxembourg and Finland have both made progress in comparison to last year, leapfrogging Norway. In this year’s ranking Mauritius, the Bahamas and South Korea have had a significant growth.
According to the GPI ranks, the position of the US was 20th. After that, the figures for Italy, China, India, the Philippines, Bangladesh and the Pakistan were 39th, 52nd, 95th, 103rd, 123rd and 137th, respectively.
*most of the information above was based on Khaleej Times Website.