The United Arab Emirates is the most competitive country in the Arab world, as per the IMD World Competitiveness Ranking for 2022.

Out of 63 countries, the study – published annually by the IMD Business School in Switzerland - placed the UAE in 12th place globally, surpassing countries such as China, Canada, Germany and Luxembourg.

In addition, the UAE is the 8th most competitive economy in Europe, Middle East and Africa according to the ranking, behind Denmark, Switzerland, Sweden, Netherlands, Finland, Norway and Ireland. 

Denmark came in pole position overall, followed by Switzerland, Singapore, Sweden and Hong Kong in the top five, Zawya reports.

A number of factors were taken into consideration when rating the economies within this ranking, such as government, economic and business efficiency, as well as infrastructure. 

In terms of government efficiency, the UAE rated highly at 88.31, the third highest in the world. The country also scored highly in regard to business efficiency at 70.98, in a global 17th place, yet scored slightly lower in infrastructure at 62.53, in 26th position.

The IMD report also stated that some of the challenges the UAE will need to face this year in order to remain competitive, will be to determine how to maintain the momentum for economic diversification and attract further foreign direct investment.

The report also indicated that other challenges include boosting investments in sectors including the digital economy and renewable energy; bolstering research and development to match investment levels and ambition within the UAE; and reinforcing economic resilience against global and systemic risks.