Saudi Arabia has experienced significant economic reforms that have propelled its ranking in the World Competitiveness Index 2023 to 17th place, surpassing its G20 counterparts by a considerable margin.
According to the International Institute for Management Development, based in Switzerland, the Kingdom jumped seven spots from its previous position of 24th in 2022. This remarkable advancement follows its ranking of 32nd in 2021.
Saudi Arabia's climb has been propelled by its commitment to Vision 2030, which has led to considerable improvements in economic performance, government effectiveness, and the business climate.
These advancements have allowed the Kingdom to outshine G20 peers such as South Korea, France, and India. Furthermore, it has surpassed other notable countries including Japan, Italy, Argentina, Indonesia, Brazil, and Turkey.
The World Competitiveness Index, initially published in 1989, utilizes an extensive research process to select 336 criteria for evaluation, as stated on its official website. The annual report has become a crucial benchmark for assessing a country's competitiveness by analyzing its ability to effectively manage competencies and generate long-term value.
Denmark secured the top spot in this year's rankings, with Ireland surging nine places to claim second place. Switzerland maintained its position in third place. Singapore, the Netherlands, China, and Hong Kong occupied the fourth, fifth, sixth, and seventh positions, respectively.
Christos Cabolis, the chief economist at the IIMD's World Competitiveness Center, emphasized the importance of agility and adaptability in navigating the current unpredictable global environment. He highlighted countries like Ireland, Iceland, Bahrain, the UAE, Saudi Arabia, Qatar, and Singapore as prime examples of resilient economies that can promptly adjust policies based on prevailing economic conditions.
The index also placed Sweden at eighth place, followed by the United States and the UAE in ninth and tenth place, respectively. Arturo Bris, the director of the WCC, commented on the increasing number of countries pursuing their individual interests, leading to winners and losers in a landscape of overlapping crises and a growing division between economies with both protection and unrestricted trade.
In the Middle East, Qatar made significant progress by climbing six places to secure the 12th position, while Bahrain rose five spots to reach the 25th rank.
Earlier this month, the International Monetary Fund recognized Saudi Arabia as the fastest-growing economy among the G20 nations. The country's notable achievements in digitization, regulatory environment, and women's empowerment have contributed to its remarkable progress.
