UAE Tops List For Business Climate In 2023 Emerging Markets Index

The United Arab Emirates has topped the list of countries offering the most suitable business climate across the world, according to a recently released index that measures legal, tax, and regulatory frameworks in 50 emerging markets around the globe.

The UAE leads the list with the best business fundamentals, followed by Qatar, Saudi Arabia, Malaysia and Oman in the top five, according to the 14th annual Emerging Markets Logistics Index by supply chain company Agility Logistics.

The UAE also ranks 3rd overall, 5th in domestic logistics opportunities, 7th in international logistics opportunities, and 2ndin digital readiness, among the 50 countries.

In the index's highlights, it is noted that the UAE is 2nd among emerging markets "that lead in digital skills, e-commerce, sustainability, and support for entrepreneurs and startups.

Furthermore, the index showed that the UAE tops the list of Middle Eastern and Gulf Cooperation Council (GCC) countries that have shown digital readiness in 2022.

The Agility Index also pointed out that countries in the Gulf area "continue to hold an edge over most other emerging markets in business climate and fundamentals."

The Emirates is expected to attract as much as $22 billion in foreign direct investments (FDIs) this year due to its reforms in the business sector, Khaleej Times reported.

The UAE's latest achievement came a few weeks after the government announced a significant reduction in fees for 14 business services as part of its efforts to enhance the Emirates' business environment.

"The move aligns with the objectives of the 'Make in the Emirates' initiative aimed at creating an attractive business environment for local and international investors and support entrepreneurship and SMEs in the industrial sector," the Ministry of Industry and Advanced Technology said at the time.

Aside from establishing initiatives for ease of business, the UAE recently reduced the legal age for practicing business from 21 to 18, as per Gulf Business.

The Federal Decree Law No. 50 of 2022 on Commercial Transactions in the UAE will allow anyone aged 18 years and above to practice business as part of the efforts to encourage youth participation in the sector.

The UAE was also ranked 12th globally in the 2022 World Competitiveness Yearbook by the International Institute for Management and Development (IMD) as it scored 88.67 out of 100 in the 2022 index.

In terms of business efficiency, the UAE ranked 17th globally in the IMD Yearbook. It also ranked 1st globally in 19 indicators out of 338 indicators the IMD used to evaluate how governments and enterprises work toward achieving prosperity.