The UAE as a Driver of Global Growth
- 6 April 2014
The recently released Global Enabling Trade Report 2014 ranked the UAE on top in the Middle East and North Africa (Mena) region and 16th internationally. The Enabling Trade Index, the core of the Global Enabling Trade Report, measures the factors, policies and services that facilitate trade across borders. The index has major significance, especially at a time when the world is experiencing a period of economic and financial instability. Also, major traditional economies today suffer from weakness in domestic consumer demand, which increases reliance on external demand as the only alternative to stimulate growth. This is true for major economies and global economy as a whole.
The weak consumer demand that is being experienced in major economies today, such as Europe and the United States, is coinciding with a quantitative growth and a structural change in consumer demand of emerging economies, as in the case of the Asian economies, especially China and India. This is also true for other economies in South America, the Middle East and Africa. These factors are giving a major wake-up call and point to a re-orientation of global trade, which is leaning more toward emerging economies at the expense of major traditional ones. All this has the potential to allow the rise of new global business centers at the expense of traditional ones.
Under these circumstances, countries that wish to play a pivotal role in restructuring the global trade map, has to meet a number of criteria. The process begins with the development of investment climate in general, increasing efficiency and quality of business in particular; developing trade policies, and facilitating trade in goods across borders etc. While developing the Enabling Trade Index, all these conditions are considered under four main segments – namely market access, border management, infrastructure and business environment index.
The UAE’s advanced ranking indicates that it has largely succeeded in meeting these conditions and has moved significantly toward building global corporations. They are enormous in size and have balanced distribution network in different regions of the world. They also maintain qualitative balance through the exchange of a wide range of goods and services. The UAE’s top ranking confirms that it is moving in the right direction in becoming one of the driving forces on the new global trade map. The country’s economy also has features that ensure its sustainability and gives it the opportunity to develop an effective role commensurate with recent developments taking place in global arena.
Successful business policies, ideal investment climate, and positive economic performance have all combined with an ambitious development vision of the UAE’s wise leadership. This has turned the country into a prosperous model of development, a promising business hub restructuring global trade, and as a link between markets in the neighborhood and markets of the world. The UAE today links economies all over the world. This role not only reflects positively on the UAE’s economy but also has regional economic benefits. It makes the UAE a driver of global growth and an important destination for new world trade routes.