Posted on May 19, 2011

Gas-rich Qatar has been named the world’s eighth most competitive country by top Swiss business school IMD, the only Gulf state to break the top twenty in the annual list. Qatar, which has sidestepped the uprisings sweeping the Arab world, netted 90.2 points out of a possible 100 for its competiveness, jumping six places in the rankings of 50 global economies. Hong Kong and the United States jointly took the top slot, both scoring full points, IMD said.

In 2010 the US ranked third, losing its title for the first time in decades. Singapore was ranked the third most competitive economy followed by Sweden, Switzerland, Taiwan and Canada, respectively. “The world of competitiveness becomes more national,” said Stéphane Garelli, director of IMD’s World Competitiveness Center. “It increasingly emphasises re-industrialisation, exports, and a more critical look at delocalisation. “This trend is triggered by the rise in commodity and transport prices and higher labour costs in emerging economies.”

Qatar would see billions in new foreign investment if it is upgraded from a frontier market to emerging market by MSCI in June, the vice president of BNY Mellon said in May.

“Reports we've seen indicate Qatar would benefit from at least $2bn in new money from investors who track the MSCI index,” Peter Gotke said. “You’d expect these indices to attach themselves very quickly, with a significant amount of money coming in a very short timeframe, possibly within six months or even three months.”

source: Arabian Business