UAE tops Mideast, Africa in inclusive growth: MasterCard

The UAE has topped Middle East and Africa (MEA) in inclusive growth with a score of 57.58, according to MasterCard report.

Closely following the UAE's lead is Qatar, in second place (55.2), followed by Bahrain (54.5), Saudi Arabia (51.4) and Oman (50.9).

The findings serve as a performance indicator on the pace and pattern of regional economic growth and seek to benchmark MEA developing nations against the developed countries of the Organisation for Economic Co-operation and Development (OECD).

Inclusive growth is a concept that advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society.

The definition of inclusive growth implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth.

Dr. Yuwa Hedrick-Wong, Chief Economist for the MasterCard Center for Inclusive Growth and co-author of the study, said: "In order to support MEA countries in their pursuit of economic development, and more specifically in meeting the challenge of diversifying their economies from narrowly based resource extraction and exports, our Report seeks to assess present and enabling conditions that are driving inclusive growth, and to suggest ways in which improvements can be made. To that end, present conditions include economic growth and expanding economic opportunity, as well as equality of outcomes and similarity in the economic conditions of individuals; while enabling conditions involve employment and productivity, access to economic opportunity, governance and youth."

The report spotlighted the UAE for its regional leadership position and dedication to advancing its performance across both present and enabling conditions, and persevering in diversifying its economy away from oil and gas. This, combined with enhancing its education, healthcare and tourism sectors, has resulted in the creation of more job opportunities and increased sustainability, resulting in a higher inclusive growth score which is a mere 6.8 points behind the global OECD average of 64.38.

That said, the report highlights that further inclusive growth can be driven through job creation and encouraging an entrepreneurial ecosystem to support a thriving economy.

"It could be argued that inclusive growth is the solution for economic development concerns in the MEA region," explained Dr. Yasar Jarrar, Vice Chair of the Global Agenda Council on the Future of Government (World Economic Forum), and co-author of the report.

"When income distribution and opportunities are equalized, countries will be able to boost local consumption, power growth, and reduce poverty and unemployment, while also seeing a rise in social and economic mobility, leading to an expanding, dynamic and increasingly prosperous middle class."

He added that the UAE's leadership position can be attributed to its continued focus on economic diversification, national competitiveness, and its encouragement of entrepreneurship - all of which are essential to meeting the demands of a burgeoning youth population. As an example, Jarrar referenced the recently announced government backed 'UAE Innovation' strategy, which has been designed to boost interest and job creation in seven critical sectors and those are renewable energy, transport, education, health, technology, water and space.

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