RIYADH: Making strides in its economic diversification initiatives, Saudi Arabia has climbed to the 16th position in the World Competitiveness Index 2024, marking an improvement from its previous ranking.
A report by a prominent Switzerland-based management institute indicates the Kingdom’s jump from 24th in 2022 and 32nd in 2021, crediting the rise to its Vision 2030 agenda, which has bolstered economic performance, governmental efficiency, and cultivated a welcoming climate for businesses.
The advancement places Saudi Arabia ahead of several G20 counterparts, such as India, the UK, and Japan, as well as other nations including Italy, Argentina, Indonesia, Brazil, and Turkiye.
Commerce Minister Majid bin Abdullah Al-Qasabi, in a statement, highlighted that this achievement reflects the effectiveness of the nation’s economic transformation, guided by Crown Prince Mohammed bin Salman’s vision.
Saudi Arabia’s Prominence in Key Subindicators
The Kingdom has achieved leading positions in various subindicators, excelling in cybersecurity, sustained employment growth, labor market expansion, and internet user prevalence.
Notably, Saudi Arabia ranked 12th in business efficiency worldwide, came in second for stock market capitalization and digital modernization in enterprises, and was recognized for its venture capital availability, technological advancement, and financial support for technical development.
Additionally, it secured third place in entrepreneurial activity and favorable unemployment legislation, while its infrastructure ranking remained at 34th, consistent with the prior two years.
Despite experiencing a slight dip to 15th in economic performance, a significant improvement from its 31st and 48th positions in 2022 and 2021, respectively, the report also underscores the necessity of enhancing renewable energy, reducing carbon emissions, and further developing the Kingdom’s business sector and human capital.
Singapore Tops the Index
Claiming the top spot in the index, Singapore has shown outstanding performance, particularly in government and business efficiency, though it must navigate the challenges of new technologies such as AI.
Arturo Bris, director of the World Competitiveness Center, emphasized the importance of the index as a benchmark for measuring progress and identifying improvement areas, contributing to overall economic development and aligning with global objectives.
Following Singapore, Switzerland and Denmark secured the second and third places, with Ireland, Hong Kong, and Sweden also ranking highly. The UAE advanced to seventh, showcasing the dynamic movement within the index.
Meanwhile, the United States saw a decline, landing at 13th, while Bahrain and Kuwait represented the Middle East region at 21st and 37th positions, respectively.
Artificial Intelligence: A Double-Edged Sword
The adoption of AI promises significant productivity enhancements, yet companies face challenges in its implementation, with accuracy and costs being primary concerns.
While AI remains a top priority for business leaders globally, economic downturn fears dominate in Eastern Asia and Eastern Europe, with environmental risks often relegated amidst competing priorities.