NS4453 Spring Term 2017 WEF Country Stages/Rankings WEF Competitiveness Report 2016-17

WEF 2016/17 Rankings

Global Competitiveness Index Framework

WEF Stage Placement

WEF Stage Placement: MENA

Rankings MENA Countries

MENA Assessment I MENA region countries continue to experience significant instability from spillover effects from conflicts in Libya Syria and Yemen These conflicts are undermining economic progress in entire region Instability also being created by uncertain future energy prices Oil exporting countries are experiencing Lower growth Higher fiscal deficits and Rising concerns about unemployment

MENA Assessment 2016-17 I Growth in GCC countries averaged 5.2% between 2000 and 2012 but averaged 2.5% for 2015 and 2016 Rising oil supplies are expected to keep prices low and limit growth expectations in the coming years Although region’s oil exporting countries are diverse in terms of their competitiveness two commonalities First – despite recent privatization efforts, most national economies remain state dominated and not sufficiently diversified

MENA Assessment 2016-17 II State’s state in state-owned enterprises Saudi Arabia 19.8% GDP UAE 21.8% Qatar 23.1% Oil sector remains predominant in many countries with oil GDP share of total GDP ranging from 19.5% Yemen to 62.9% Kuwait

MENA Assessment 2016-17 III Competition remains constrained throughout the region: Level of domestic competition and openness to foreign trade and investment remains below OECD levels for most countries Efficiency and productivity could be improved by continued privatization Reducing regulatory barriers to entry for domestic companies and Making business environments more welcoming for foreign directors and investment and more conducive to the growth of small and medium-sized enterprises

MENA Assessment 2016-17 IV Second as rapid global technological change gathers pace, putting in place Innovation Technological readiness and Health and primary education Will be increasingly important Oil-exporting countries in the MENA region have room for improvement in these areas Should go hand in hand with the diversification away from the energy sector.

MENA Assessment 2016-17 V The most competitive economy in this group, the UAE, is also the most diversified and has made great strides toward improving since 2011 Technological readiness 30th to 18th Innovation 28th to 25th Growth in the oil importing economies has also slowed down from 5.4% between 2000 to 2012 to 1.9% in 2015 Often a result of spillover effects from reginal conflict

MENA Assessment 2016-17 VI Key priorities for these countries continue to be Fostering employment and Making economies more inclusive To meet population’s demands for higher living standards and economic opportunities This will require reforms that aim to strengthen the private sector Promoting competition Reducing red tape and Making labor market more flexible

MENA Assessment 2016-17 VII Drop in oil prices creates a window of opportunity to tackle long-standing energy subsidies which would Allow for more competitiveness enhancing investments and Help to stabilize the macroeconomic environment which remains strained in most countries