Competitiveness development, infrastructure is to move its goods

Competitiveness is how countries
create the best economic social and environmental conditions for economic
development. It measures the things that makes up this development such as
policies, institutions and productivity. Simply it measures the vital elements
that make a country productive and bench marks nations performance. Striving
for competitive is striving for rising prosperity, it means creating more
opportunities for all to improve the way people live. A competitive economy is
most likely to grow sustainably.

There are 12 main elements that drive
the productivity of a country like how institutions perform, how good the
infrastructure is, their macro-economic environment the technological readiness
and their capacity to elevate, both positive and negative effects have reaching
effects on the bigger picture. These interconnections lie at a country’s
development for example education is more likely to be achieved in a healthy
well educated work force to further invest and reach development, infrastructure
is to move its goods and people to where they need.

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Global competitiveness helps policy
makers diagnose which countries are more productive than others giving them a
clear picture of their direct impact of policies, and all the facilities
provided such as hospitals schools. Technological development, the roads,
financial market prospects for employment, It is mainly all about creating a
better life to everyone.

 

 

 

 

Porter’sreview

It mainly emphasizes on increasing productivity
by competing globally. Competition occurs when a business can meet the test of
international competition but at the same time the living standards of the
average citizen can be maintained or increase

Porter’s review insisted that microeconomic
capabilities must improve in order for the macroeconomics elevate and be more
prolific

Porter discuss the business competition index
BCI which provides massive data to measure and analyze the competitiveness of
the countries, it identifies the country’s strengths and weaknesses

Mainly his discussion is focused on
macroeconomic, political, legal and social circumstances that drives a
successful economy that are the main contribution to a productive economy yet
they are insufficient to create wealth which is created on a microeconomic
level of the economy, without improvement in microeconomics, macroeconomics
other firms will not improve.

Porter’s review comparing differences between
developing and developed countries of micro and macroeconomics that contribute
growth in the economy and achieve high living standards significantly, moreover
porter discuss the foundation of productivity as 2 main areas. 1) The
sophistication with which domestic or foreign companies operate. 2) The quality
of microeconomic business in which they operate, his discussion further
includes aspects that improve competitiveness through utilization of clusters
which are a group of companies, supplier, institutions in a specific related
field and their ability to create innovative environment as well.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UAE & Pillar 2 Infrastructure

UAE has the most advanced infrastructure in the
region roads, airports & telecommunication facilities to support the
economic growth and business development, the road networks also link UAE to
Oman and KSA to facilitate trade. traffic congestion is eased by the continuous
development and improvement of road networks

Aviation is set to be the earliest drivers of
non-oil economic growth in the UAE as considered to be a global aviation hub, there
are 7 international airports through the country as UAE is home to 2
international airlines Emirates airlines and Etihad airlines as well and low
cost airlines as air Arabia & Fly Dubai set to levirate economic growth aviation
forms 28% of total GDP of Dubai & accounts for 19% of employment in Dubai

Further development is set through Al-Maktoum
Airport which when set will be the world’s largest airport

The UAE’s strategic location has not only
allowed the country to become a global aviation hub but also set a unique
marine activities & transportation, the country has numerous port
facilities catering general cargo, container shipping, most port are located on
the western coast including Jebel Ali, the biggest port in the middle east the
ports of Fujairah & Khor-fakkan are located on the eastern coast &
offer direct access to the Indian ocean without the need to navigate through Hurmuz.

Railways had been the missing element in UAE
infrastructure transport structure however that situation has recently changed
on sept 9th 2009 when Dubai Metro was opened to the public as first
Urban Train network in the G.C.C currently 75 km of rail way track across its 2
lines and addition 2 line are being developed for the future.

Infrastructure in the UAE is not just about transportation,
telecommunication structure in the country has been steadily developed and it
accounts for a significate portion of the economy contributing about 5.3 to the
GDP of the UAE increase from the past years from 4.1which is considered to be
significant.

All the country sector such as banking, health,
education sector requires adequate & advanced telecommunication,
infrastructure & capabilities

Telecomm is considered to be a key driver for
the country’s economy growth through flexible policies to facilitate
development

 

 

 

 

 

 

 

UAE and pillar 3 Macroeconomic environments

UAE is of the largest economies in the middle
east and it’s per capita GDP is on par with highly developed European counties

Geographically speaking UAE is fairly small,
just over 30,000 square miles, over the last two decades the population has
nearly quadrupled due to high birth rate and rapid influx of expirate
works.Uae’S Economy is the most diversified in the Persian gulf and its most
populous city Dubai is emerging as a hub for travel , trade and aviation.

The uae is extremely conductive to private
business and free market due to the country’s enormous trade zones , businesses
and corporation which was recently exempt from all taxes with little revenue
coming from taxes the uae government is left extremely dependent on its primary
oil export even after efforts to diversify the economy, the resources still
contribute to about 40% uaes’s more than 350 billion dollar GDP.

As global demand for oil has slowed the country
has been forced to make up for loss by reducing public spending including
partial elimination for fuel subsidies in 2015. To specifically discuss
macroeconomic environment is important for business and therefore is
significant for overall competitiveness of a country , the GCI report 2013 to
2015 shows a decrease due to inflation rate in UAE.

Economist forcast a rise in consumer inflation
to 4.8% in 2018 from 2.8% in 2016 with the introducyion of tax in Jan 2018

Any inflation rate increase can restrict the
economic growth of the country

CPI is the tool assessing the changes in the
live expenditure , it reflects the demand of goods as well as the money value

Uae’s Macro econiomic report states that CPI of
Uae has been increasing gradullay in the recent years .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UAE and pillar 5 Higher education

Recently education has turned to be a focal
concentration inn the uae

Its advancement is necessary to cope with the
overall country’s development, nonetheless there are significant difficulties
for policy maker to succed in economic expansionand decrease the dependence on
the foreign workers

Education achieved significant leaps in the
recent decades, the numer of universities has increased offering various
programs to cope with the global education and increase the qualified
nationals, this would lead its natin to get employed in the organisations to
contribute the counties overall development . 

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