According to UN rankings, UAE boasts the most competitive industrial sector

According to the latest UN global rankings, the UAE boasts the most competitive industrial sector in the Arab world. The United Nations Industrial Organization’s (UNIDO) Competitive Industrial Performance Index (CIP) report for 2021 was ranked 30th out of 152 countries.

In line with the National Strategy for Industry and Advanced Technology, Operation 300Bn, the UAE has climbed five places in the UNIDO CIP since 2020 and nine places since 2017, proving the competitiveness of the country’s industrial sector and business ecosystem.

The UAE’s development in infrastructure and the industrial sector’s business ecosystem were highlighted in the study. It alluded to the UAE’s industrial growth strategy, which includes embracing sophisticated technology, boosting science-based education, balancing industrial advancement with environmental sustainability, and stimulating innovation.

His Excellency Dr. Sultan bin Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology, said: “UNIDO’s report reaffirms the UAE’s global reputation for developing an innovative industrial ecosystem underpinned by advanced technologies and Fourth Industrial Revolution solutions.

“Our rapid advances as a global industrial pioneer is a great testament to the foundations laid by our leadership, who have paved the way for dynamic and sustainable economic growth over the next fifty years, and beyond.”

He added: “The UAE’s continuous progress in UNIDO’s CIP shows we are well on the way to achieving the goals set out by Operation 300Bn. Thanks to the country’s attractive business environment to local and international investors in the industrial sector, the UAE is cementing its position as a global destination for pioneering future industries.”

His Excellency stated that UNIDO’s CIP tracked the progress of the UAE’s industrial sector by identifying important characteristics of the country’s industrial development model and linked it to the UAE Vision 2021 and the 2014 National Agenda.

The UAE’s Vision and Agenda aim to develop a knowledge-based economy and assist the country in improving its global rankings. The Ministry of Industry and Advanced Technology (MoIAT) was established in July 2020 to help achieve these goals and manage the strategy.

 The CIP of UNIDO examines and quantifies global economies’ industrial competitiveness along three primary dimensions: manufacturing capacity, technological deepening and upgrading, and global impact. There are eight indications for these three dimensions.

The current report shows how the UAE has risen significantly in the global industrial rankings by improving four out of eight parameters, indicating a quantum leap in the industry. The UAE has moved up 14 places in terms of manufacturing exports per capita, from 31st to 17th, while moving up to 32nd in terms of total manufacturing exports.

Furthermore, the UAE has risen eight places in terms of the percentage of manufactured items in its entire export mix, moving up to 107th from 115th last year.

MoIAT’s activities have reinforced the foundations of a knowledge-based economy and enhanced industry’s contribution to GDP through programmes focusing on smart industries and adopting 4IR applications and solutions. In the near future, the UAE hopes to build on its achievements.

CIP 2021 rated Germany #1 overall, followed by China, the United States, Japan, and South Korea. The UAE was the only Arab country to get a “high performance” grade in the ranking, coming in third after Turkey and Israel in the Middle East.

The CIP report lauded the UAE’s industrial growth model, saying that the country has devoted numerous resources and efforts to encourage innovation, research, and development to transition to a knowledge-based economy. According to the report, the UAE has also fostered world-class education and is balancing infrastructure expansion with environmental protection.