The secret ingredient to the UAE's ascent to the global top 10

Solar energy trees at the Sustainability Pavilion in Dubai last year. EPA

The UAE's remarkable rise to the top 10 in the IMD World Competitiveness Ranking is not just a testament to its robust economic policies but also a demonstration of its unique governance model. This model, characterised by effective strategic execution, agility and a relentless focus on innovation, sets the UAE apart as a nation that embodies the principle of "mission possible".

From its inception in 1971, the UAE has been driven by a vision to transform itself into a prosperous nation. This transformation is evident in its strategic initiatives outlined in Vision 2021, We are the UAE Vision 2031, and the long-term 2071 centennial vision. While these visions sound ambitious and are an attempt to gaze into the future, the UAE believes that the best way to predict the future is to influence and shape it. Unlike many countries that struggle to move beyond visionary rhetoric, the UAE excels in strategic execution.

A prime example of this is the UAE's diversification away from oil dependence, a journey that started in the mid-1980s, just as the oil economy was taking shape. By investing heavily in sectors such as tourism, aviation, renewable energy and financial services, the UAE has significantly reduced its reliance on oil revenues.

In 2023 alone, the UAE welcomed more than 17 million tourists, showcasing its global appeal as a top travel destination. The aviation sector has been a cornerstone of this diversification, with Emirates and Etihad Airways carrying more than 90 million passengers annually, connecting the UAE to more than 150 destinations worldwide. The establishment of free zones with tax incentives and full foreign ownership has attracted global corporations, further bolstering the UAE's economic landscape. Dubai's Jebel Ali Free Zone, which hosts more than 7,500 businesses, is proof of this successful strategy.

This was possible due to a key strategic capability that the UAE government has excelled in; the ability to deliver tangible results, not reports. The hallmark of the UAE government is its focus on strategy execution. This is also coupled with another strategic capability, dynamic pragmatism, agility and ability to adapt to changing circumstances. In a rapidly evolving global landscape, this adaptability is akin to the Darwinian principle that it is not the strongest species that survives, but the most adaptable to change.

A great example was during the Covid-19 pandemic, where the UAE swiftly adapted its strategies to ensure economic continuity and public health safety. Not only did the government’s proactive measures, such as mass testing, efficient vaccination campaigns and economic stimulus packages, help mitigate the pandemic’s impact and accelerate recovery; the country also hosted the world in Expo 2020 during a global pandemic, drawing millions of visitors and maintaining strict health protocols. This is strategic agility.

The final piece to this puzzle is the government's ability to innovate and its investment in technological infrastructure. The nation leads in cloud adoption and 5G infrastructure, setting the stage for future innovations and economic opportunities. The Abu Dhabi AI Strategy and initiatives such as the Falcon AI project demonstrate the UAE's commitment to becoming a global leader in artificial intelligence.

The Economist has highlighted the UAE as a formidable competitor to China and the US in the AI race, noting its strategic investments and forward-thinking policies that enhance the country's technological capabilities and economic resilience.

The UAE has mastered the art of turning visionary goals into actionable plans. For governments and business leaders worldwide, the UAE offers a masterclass in achieving rapid and sustainable growth. Its strategic execution, economic diversification and innovation-driven approach provide a robust blueprint for building a resilient and future-proof economy.

As we stand on the verge of unprecedented global development and the age of AI, the UAE's model is a powerful lesson in surviving and thriving in a fast-changing world, offering insights that can guide us through the unknown territories ahead.