Any country, big or small has to provide a favorable business environment for its economy not only to grow but also to prosper. Needless to say provision of a number of factors are indispensable for a healthy and competitive economy. The captains of the industry in the private sector look to the policies in place for making their business decisions.
The factors which are quintessential for an economy to grow and sustain are;
- Access to viable sources of finance
- Favorable labor regulations
- Stable economic and monetary policies
- Educated workforce
- Foreign currency regulations
- Controlled inflation
- Favorable law and order situation
- Platform for innovation
- Low tax rates
- Lack of corruption
- Basic requirements
The government of UAE has been consistently taking incredible efforts in the provision of the above facilities and take it to the next level.
It is heartening to know that the United Arab Emirates continues to lead the Arab nations in the Global Competitiveness index. According to the latest report of the World Bank, United Arab Emirates ranks 17th in the Global Competitiveness index.
Thanks to the constant efforts of the Government of UAE, its economy shows a great resilience.
This is despite the fact that the global economy has witnessed lower oil and gas prices and reduced global trade.
The excellent rank of UAE (17th) is attributed to the efforts of the Government in gradual diversification of its economy from the oil sector to the non-oil sector.
UAE ranks 3rd in Goods market efficiency. Only Singapore and Hong Kong SAR are ahead of the UAE. This speaks of the prices of the commodities in the country.
No industry can perform to its capacity, if it does not have the required infrastructure to operate. It ranks 5th in the provision of the Infrastructure, only Hong Kong, Singapore, Netherlands and Japan are ahead. This is one of the great features of the UAE economy.
As far as the provision of basic requirements to the business and its subjects, it ranks 5th. This pedals the economy to march ahead in terms of growth.
The above statements indicate a healthy scorecard. All the players, are performing. The batsmen are scoring heavily, bowlers are taking wickets at an economical rate supported by the fielders.
The UAE’s economy can do even better if it works more in the following areas.
Financial market development which ranks 24th.
Macro- environment which ranks 28th in the Global Competitiveness index
Higher education and training.
However, the Government of the UAE, needs to be complimented for its openness in the Global economy which is enabling its economy not only to grow but also to sustain.
In order to strengthen the indirect taxes, the UAE Government will implement Value Added Tax, from 1st January 2018. VAT is a tax on the purchase of a product.
The economy is in the right direction in its readiness to the EXPO 2020.
Source; https://www.weforum.org/reports/the-global-comp etitiveness-report-2017-2018