When compared to other economies, the UAE has proven its economic strength through efficiency and an increased focus on diversity. A testament to this is the fact that they placed 16th out of 138 countries in the World Economic Forum’s Global Competitiveness Index. According to the index, the country achieved its high ranking by having strong infrastructure and institutions, goods market efficiency, and technological readiness. However, the report stated that the country has room for improvement in areas such as market size, innovation and financial market development. Additionally, other inefficiencies associated with doing business were found when the World Economic Forum conducted a survey on executives in UAE. The objective of the survey was to identify the most problematic factors of doing business in the country. According to the executives, the main issues causing inefficiency in UAE business operations include restrictive labor regulations, access to financing, inflation, inadequately educated workforce, and inefficient government bureaucracy.

 

A particular group that has been attracted by the UAEs economic competitiveness is younger generations. According to a 2016 Global World Economic Forum survey, young people ranked the UAE as the top emerging market for working abroad and ranked it 11th when including all countries. A specific aspect of the UAE economy that was attractive to respondents is the priority the country has placed on investing in technology. 90% of survey respondents from the Middle East and North Africa (MENA) said they believe that technology is more likely to create than destroy jobs in the future. Therefore, it is logical that a demographic that views technological diffusion and development in a positive light is more likely to favorably view a country that is expanding their investments in technology.

 

Besides technological development, another initiative that the UAE has taken on is bolstering the private sector. Again, this explains young people’s interest in the UAE because 25% of MENA respondents found public sector jobs to be very unattractive while only 10% found them to be very attractive. While the competitiveness index showed that the UAE does not have a perfect economy, its overall rank in the index and its attractiveness to younger generations show that its economy is for the most part efficient.