UAE tops prosperity index in the Arab World |
|
The UAE has been rated the best country in the Arab World in promoting prosperity and general satisfaction with life in a global survey of 104 states.
The country - which was placed 28th in the world - owes its high ranking to Dubai's diversified economy, according to the report by the Legatum Institute.
"Within the UAE, Dubai has moved past dependence on oil exports towards a more diversified economy based on attracting international capital and talent," says the institute, an independent policy, advocacy and advisory organisation.
"Consequently the UAE has an extraordinarily high migration and therefore opportunity score, as global workforce has flocked to the opportunities created by Dubai and its fellow emirates."
As well as achieving a high overall ranking in the institute's 2008 Global Prosperity Index, the UAE performs well in individual categories. It ranks 24th in terms of per capita income at $22,698 (Dh 83,301), well above Saudi Arabia ($14,769) but just below Kuwait ($23,416). The UAE is 21st in the world in the satisfaction with life category, surpassing major economies such as Italy (22nd), Singapore (23rd), Germany (25th), Japan (30th) and Hong Kong (53rd).
Kuwait (30th) has also been ranked among the world's best countries in economic growth and life satisfaction. Jordan and Saudi Arabia are in the top 50, but others rank lower and Yemen sits at the very bottom of the index.
Allan McCormick, managing director of Legatum, told Emirates Business that though the UAE had performed extremely well compared to other countries in the region the country still needed to do more.
"The UAE has created the right environment for entrepreneurship," he added. "Greater competition, a continued reduction in dependence on oil and good governance could bode well for the UAE."
He said the country was well positioned to weather the current global financial storm.
Most Middle East countries score highly in the categories covering satisfaction with health, family life and religious faith. The data suggests that, together with highly religious Latin America, the region is home to a disproportionately large number of the world's worshippers. Most Middle East countries score poorly on religious freedom, but the GCC countries report high levels of charitable giving.
The report suggests that prosperity could be further enhanced by reducing dependence on commodity exports such as oil and gas and an expansion of political rights and civil liberties.
Dr William Inboden, senior vice-president of the institute, said: "Long-term prosperity in the Middle East will grow from the effectiveness and integrity of its political institutions, prudent regulatory and trade policies, the innovation of entrepreneurs, and the freedom of citizens to choose the course of their lives."
McCormick adds: "The index reveals that governments alone cannot mandate prosperity, but they can foster an environment that encourages prosperity through implementation of wise policies. "Individual citizens are responsible for taking ownership of their lives and, in richer countries, embracing the opportunities that accompany increased freedom and privilege."
The index covers factors such as social capital, health, equality of opportunity, the environment, effective governance, human rights and liberties, and overall quality of life.
The top spot in the Index is taken by Australia, followed by Austria and Finland in a tie for the second place. The leading three are followed closely by Germany, Singapore and the US, also in a tie.
Australia leads because of its strong performance in education, governance and the promotion of entrepreneurship.
The country makes a particular virtue of entrepreneurship as a source of material wealth as well as pursuing broader societal wellbeing through high levels of volunteering and charitable giving.
Austria turns in top scores in education, a key to long-term income growth, and also in health, a key to quality of life. Finland boasts superb governance, helping to drive both wealth and well-being in that country. This group of countries tops the index because of imbalanced results from other regions.
Many Asian countries score very well on economic competitiveness indicators but have comparative weaknesses in livability, including limited equality of opportunity for women, a degraded natural environment, and long working hours.
In contrast, most Nordic countries score very well on livability indicators, but poorly on some wealth drivers, most notably entrepreneurship.
While no country has poor scores in every category, Yemen comes closest. While its people maintain a strong religious faith, they also suffer from extreme levels of poverty and poor governance.
For most of the countries in the bottom ranks of the index, extreme poverty appears to be the main cause. This usually has further well-being impacts by contributing to ill health and unemployment. A number of countries, such as Zimbabwe and Sudan, are both impoverished and politically repressive.
Some of the Asian countries - Singapore, Hong Kong, Taiwan and Japan - take top positions in the index of economic competitiveness. These countries and territories have achieved the fastest income growth in the world, surging from poverty to material prosperity in a single generation.
They boast excellent mass education services, highly effective and market-oriented regulation, a focus on income growth rather than dependence on foreign aid, and an ability to engage effectively with the global economy.
They particularly excel at taking advantage of the market demand and advanced technologies on offer from the world's consumers and businesses.
Asian economies have been most successful at commercialising foreign technologies but show some weaknesses in generating technological innovation themselves.
At the same time, while few countries can equal Asia's long-term economic growth rates, most countries there show weaknesses in livability.
Most notable is equality of opportunity. The Gallup World Poll finds that relatively few people in Hong Kong, Singapore and South Korea agree with the statement "in this country, people who work hard can get ahead".
This is all the more remarkable considering the high economic growth rates in these countries. Perhaps, however, it is not so remarkable when one considers the level of exclusion of women from leading positions in the economy and politics in Asia.
Other weaknesses in livability common to many countries in Asia include a degraded natural environment and extremely long working hours. Having achieved rapid advances in material wealth, citizens of the leading Asian economies may wish to focus on the drivers of well-being, says the report.
The pros and cons
The survey shows that geography does not shape the destiny of nations and that the modern prosperity of many countries is certainly not linked to their locations and natural endowments in the distant past.
While such arguments may explain much of human history, in the 21st century these inheritances can be overcome through smart choices.
For example, South Korea and North Korea share a similar geography - not to mention cultures and languages - and yet their destinies have been vastly different.
With top countries in the prosperity index including Singapore (a tropical country), the UAE (an Arab country), the Czech Republic (a former communist country) and Malaysia (a majority-Muslim country), it is fair to say that while geography and history can pose ongoing challenges, they do not dictate a country's destiny.
This offers hope to countries in regions blighted by poverty and instability, as well as a lesson to those governments that seek to attribute their countries' present misfortunes solely to a poor inheritance.
By Waheed Abbas
© Emirates Business 24/7 2008
Community Comments (0) - 
Comment on this article 
Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
Loading ...
Zawya Comment Policy:
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Community Buzz
Stories
Companies
Most viewed companies by Community in the last 24 hrs
| Company Name | Country | Industry |
| Aabar Investments | UAE | Investment Companies - Oil and Gas |
| Nakheel | UAE | Landlords and Developers |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Abu Dhabi Investment Council | UAE | Investment Firms and Funds |
| Consolidated Contractors Company | Overseas | Construction and Design |
| Dubai Islamic Bank | UAE | Banking |
| Barwa Real Estate Company | Qatar | Landlords and Developers |
| Saudi Telecom | Saudi Arabia | Telecommunications Services |
| Qatar Investment Authority | Qatar | Investment Firms and Funds |
| Qatari Diar Real Estate Investment Company | Qatar | Landlords and Developers |
Projects
Most viewed projects by Community in the last 24 hrs
| Project Name | Country | Sector |
| Dubai RTA - Dubai Metro - Purple Line | UAE | Infrastructure |
| Emirates Aluminium (EMAL) - Smelter Complex | UAE | Industry |
| Qatar Foundation - Sidra Hospital | Qatar | Real Estate |
| IPIC - Abu Dhabi Crude Oil Pipeline (ADCOP) | UAE | Oil and Gas |
| KNPC - Al Zour Refinery | Kuwait | Oil and Gas |
| Qatalum Aluminum Smelter | Qatar | Industry |
| Abu Dhabi Municipality - Salam Street and Mina Road Development | UAE | Infrastructure |
| Nakheel - Dubai Waterfront | UAE | Real Estate |
| Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| ADCO - SAS Field Development | UAE | Oil and Gas |