UAE Economy Projected for Stellar Growth, Outpacing Global Averages
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The United Arab Emirates (UAE) is poised for exceptional economic expansion over the next decade, according to a new report by renowned investor Ray Dalio, founder of Bridgewater Associates. Dalio’s “Great Powers Index: 2024” predicts the UAE’s real economy will grow by as much as 5.5%, significantly exceeding global averages.
This optimistic forecast positions the UAE as a global economic leader, securing a remarkable second place among the world’s 35 largest economies.
Dalio’s comprehensive report analyzes 24 major and 11 emerging economies, evaluating their power across 21 key metrics. These metrics encompass a wide range of factors, including GDP, global trade share, education levels, healthcare, and overall well-being. The report delves into hundreds of sub-indices to provide a nuanced and accurate prediction of future economic growth, highlighting the crucial role of these sub-indices in shaping economic trajectories.
the report attributes the UAE’s projected 5.5% growth primarily to its robust non-oil sectors. While the UAE is a major goods exporter,with net exports accounting for 36% of its GDP,Dalio’s analysis emphasizes the potential of other sectors to fuel this impressive growth.
The UAE’s young and dynamic workforce is a key driver of this positive outlook. In contrast to aging populations in countries like Japan, South Korea, and many European nations, the UAE boasts a workforce with a 0.8% annual age change rate,placing it sixth globally. This contrasts sharply with countries like India, Argentina, and Mexico, wich have even higher rates of youth in their populations.
Furthermore, the UAE’s workforce productivity is projected to increase by 4.8% over the next decade, ranking it third globally. This productivity boost is expected to contribute 4.2% to economic growth,surpassing nations like Japan (13th),Sweden (16th),and the United States (21st).
The UAE also excels in the “value for money” index, ranking 14th among the 35 largest economies with a 3.1% rate. This metric measures the efficiency of government spending and resource allocation, indicating how effectively the UAE translates investment into tangible economic benefits. This efficiency is a cornerstone of sustainable growth.
With an anticipated average annual per capita income of $55,000 over the next decade, the UAE is projected to rank among the world’s top ten high-income countries, surpassing nations such as Germany, Japan, and Australia.The country’s strong education system (ranked 15th globally) and a culture that fosters economic growth—characterized by a strong work ethic, flexible labor markets, low corruption, and a robust rule of law (ranked 5th globally)—further contribute to this positive outlook.
The UAE’s investment rate, at approximately 20% of GDP, is near the global average, placing it 17th among the 35 countries studied. Capital per capita,encompassing buildings,machinery,software,and intellectual property,is growing at a rate of 1.4% annually, outpacing the 1% average in emerging economies.
Dalio’s report underscores the importance of sub-indices in predicting economic growth. While the United States boasts the highest projected long-term growth rate, it lags behind in happiness (10th) and health (14th), highlighting the interconnectedness of various factors in overall economic well-being. Similarly, India, despite having the highest projected growth rate, ranks 23rd in health and last in happiness. The UK, while ranking first in happiness, falls to sixth in overall growth projections.
UAE’s Global Rise: Happiness, Health, and Economic Strength
The United Arab Emirates (UAE) is making critically important strides on the global stage, showcasing impressive gains in various key indicators. Its recent climb in international rankings highlights a nation focused on economic growth, citizen well-being, and robust healthcare systems. this progress offers valuable insights for other nations striving for similar advancements.
In 2024,the UAE experienced a notable four-place jump in the World Happiness Index,moving from 26th to 22nd position. This enhancement reflects the nation’s commitment to fostering a positive and fulfilling surroundings for its citizens. This focus on happiness aligns with growing global interest in measuring societal well-being, a trend mirrored in ongoing discussions within the U.S. about improving quality of life metrics beyond purely economic indicators.
Beyond happiness, the UAE’s healthcare system has garnered significant international recognition. The nation secured a remarkable second-place ranking on the Health Results Index. this index uniquely assesses healthcare performance based on tangible outcomes, such as the quality of services and their impact on public health, rather than solely focusing on resource allocation or spending. This approach offers a valuable alternative perspective for evaluating healthcare effectiveness, a topic of ongoing debate in the U.S. as policymakers grapple with healthcare costs and access.
The UAE’s achievements extend beyond health and happiness. The country’s economic strength is also noteworthy, ranking among the top eight globally. This robust economic performance positions the UAE as a significant player in international trade and investment,a position that has implications for U.S. businesses seeking global partnerships and opportunities.
The UAE’s success story provides a compelling case study for nations worldwide,demonstrating the potential for simultaneous progress across multiple sectors. Its focus on measurable outcomes, rather than simply inputs, offers a valuable lesson for policymakers and leaders seeking to improve the lives of their citizens and enhance their nation’s global standing. The UAE’s journey highlights the interconnectedness of economic prosperity, public health, and overall societal well-being – a lesson relevant to the U.S.as it navigates its own complex challenges.
The UAE’s advancements underscore the importance of holistic national advancement strategies that prioritize not only economic growth but also the well-being and happiness of its citizens. This integrated approach offers a valuable model for other countries, including the United States, as they strive to create a more prosperous and fulfilling future for their populations.
UAE Economy Projected for Stellar Growth, outpacing Global Averages:
An Interview with Dr. Fatima Al Tayer, Economist at Emirates Center for Strategic Studies and Research
The United Arab Emirates (UAE) is anticipated to experience remarkable economic growth over the next decade, according to a groundbreaking report by investor Ray Dalio. Dr. Fatima Al Tayer, a leading economist at the Emirates Center for Strategic Studies and Research, provides insight into the key contributors to this projected success.
World-Today-News.com senior Editor: Dr. Al Tayer, the UAE is projected to see a remarkable 5.5% annual real economic growth rate, considerably surpassing global averages. what are the main drivers behind this phenomenal growth?
Dr. Fatima Al Tayer: The UAE’s robust non-oil sectors are the backbone of this projected growth. While the UAE is a major exporter of goods, contributing significantly to its economy, diversification into sectors like technology, tourism, and finance is driving impressive expansion.
World-Today-News.com Senior Editor: Dalio’s report emphasizes the UAE’s young and dynamic workforce as a key advantage. How does this demographic factor contribute to the nation’s economic strength?
Dr. Fatima Al tayer: The UAE boasts a young, highly skilled, and adaptable workforce. This demographic dynamism injects innovation and energy into the economy, making the UAE more competitive on a global scale.
World-Today-News.com Senior Editor: The report highlights the importance of “value for money” in governmental spending. How does the UAE excel in this index?
Dr. Fatima Al Tayer: The UAE government prioritizes efficient allocation of resources and obvious financial practices. This translates into tangible benefits for citizens and strengthens investor confidence, attracting further growth.
World-Today-News.com senior Editor: Beyond economic indicators, Dalio’s report also considers happiness and health. How does the UAE prioritize these aspects of well-being?
dr. Fatima Al tayer: The UAE places a strong emphasis on holistic development. Initiatives promoting work-life balance, accessible healthcare, and world-class education contribute to high levels of happiness and well-being. This commitment to social progress creates a positive environment that fuels economic growth.
World-Today-News.com Senior Editor: What does the UAE’s projected economic trajectory signify for its future role in the global economy?
Dr. Fatima Al Tayer: The UAE is demonstrating itself as a leader in the 21st-century economy. Its focus on innovation, diversification, and sustainable development offers a model for other nations. The UAE is poised to become a major player in international trade, investment, and technological advancement.
