UAE rose in global talent competitiveness: Its economic implications and influence on businesses

• The UAE has been ranked 17th in the IMD World Talent Report 2024, which will influence the dynamics of entrepreneurs doing business in the UAE.
• This advancement is driven by ongoing digital transformation in the UAE, which fosters innovation and economic growth.
• The strategic focus on building a knowledge-based society opens up several business opportunities in the UAE.

AI adoption can enhance talent attraction and retention while also improving quality of life, particularly in forward-thinking economies such as the UAE. The recent launch of a project designed to increase research and development proves the country’s astute leadership’s commitment to building a knowledge- and innovation-based economy. Within this narrative, the UAE’s remarkable rise to 17th rank in the IMD World Talent Report 2024 is a clear indication of its growing appeal to professionals and the success of its strategies. This progress also reflects the positive environment for those doing business in the UAE, which then makes it an increasingly attractive destination for global talent.

Notably, the UAE remains the top-ranked country in the Arab world, strengthening its authority as a regional leader in talent competitiveness.

The UAE’s stable talent pool

In an increasingly automated society, it has become imperative to broaden the reservoir of knowledge in order to guarantee economic diversification. The ongoing digital transformation in the UAE strengthens its ability to adapt and thrive in an evolving global economy. With an environment that fosters global talent competitiveness, the nation has arguably been deemed a paragon of economic stability.

Recent data showcases the UAE’s solid mission of streamlining regulatory frameworks in key areas such as education and labour market policies to attract, retain, and ensure the competitiveness of global talents. Hence, it has attained the top ranking in terms of talent competitiveness in all of the Arab world, according to the IMD World Talent Report 2024.

In the factor assessing the readiness of economies to maintain a strong and stable talent pool, the UAE shows robust improvements, rising from third in 2020 to second in 2024 after falling to the seventh position in 2022. In the “appeal” sub-index, the UAE improved four places to come in 12th internationally, exhibiting its capacity to attract international talent.

Influence on entrepreneurs doing business in the UAE

The upward trend in global standings has important ramifications for entrepreneurs doing business in the UAE — or those looking to invest. As a talent-rich environment, the country provides access to an exceptionally competent and diversified workforce, which generally drives innovation and investments. In addition, its strategic focus on building a knowledge-based society opens up several business opportunities in the UAE.

The path ahead

The UAE’s improved standing in the global talent index reflects its proactive push towards a knowledge-driven economy. The government’s commitment to attracting top talent, supporting innovators, and fostering international partnerships will serve a vital function in strengthening economic resilience. For companies and investors doing business in the UAE, this creates a favourable environment for collaboration and growth.

The ongoing digital transformation in the UAE, combined with forward-looking policies, undoubtedly enhances prospects for homegrown and international businesses. As the UAE rises in talent competitiveness, it effortlessly solidifies its position as the world’s leading business environment.