Saudi Arabia’s Remarkable Progress in the IMD World Competitiveness Yearbook 2024

Saudi Arabia has shown notable progress in the IMD World Competitiveness Yearbook 2024, published by the Institute for Management Development (IMD), an independent academic institute with strong business ties and a focus on impact. The kingdom has demonstrated strong trends across many dimensions considered in the yearbook, achieving significant leaps in key labor market indicators.

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In the overall ranking, Saudi Arabia advanced by one position compared to 2023, securing the 16th place among 67 participating countries. This marked progress is evident when compared to 2021, where the kingdom ranked 32nd, reflecting Saudi Arabia’s commitment to creating a vibrant and diversified economy that fosters value creation through competitiveness. This positive trend is further highlighted by Saudi Arabia’s 10th place ranking among the countries in Europe, the Middle East, and Africa (43 countries) and ?5th place among the 30 countries with populations exceeding 20 million.

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On individual indicators, Saudi Arabia emerged as the leading country in the Employment - long-term growth factor among the 67 participating countries, reflecting the kingdom’s commitment to enhancing the labor market and attracting global talents in line with Vision 2030. Saudi Arabia ranked 5th in the “Labor Market” indicator and 6th in the “Working Hours” indicator, based on the average number of working hours per year. The kingdom also achieved 4th place in the “Attracting Foreign Highly Skilled Personnel” indicator, reflecting the successful attraction of foreign talents to its business environment. In the “International Experience” domain, measuring the experience of senior managers, Saudi Arabia ranked 8th. The kingdom also excelled in the “Employee Training” indicator, ranking 10th globally, highlighting the priority given to employee training in Saudi companies, driven by government policies that emphasize its importance for sustainable economic growth. These achievements underscore Saudi Arabia’s commitment to improving the labor market and attracting global talents.

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These results reflect the dedication of labor market regulators in enacting policies and legislations that contributed to the high rankings. Saudi Arabia secured high spots in many of the Business Legislation sub-criteria, notably ranking 3rd in the “Unemployment Legislation” factor, which significantly impacts labor market organization and government efficiency indicators. Initiatives that attract and incentivize individuals through unemployment legislation provide incentives for job seeking and encourage broad participation in the labor market. These measures highlight Saudi Arabia’s strategic approach to enhancing its economic landscape and global competitiveness.

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Management practices in the kingdom demonstrate a commitment to values that foster the greater good of doing business. Saudi Arabia ranked 16th in the “Social Responsibility” domain, indicating that the social responsibility of business leaders is highly regarded in the kingdom, stemming from Vision 2030 initiatives. This commitment to values has become integral to the global corporate culture. All these successes resulted in Saudi Arabia achieving 3rd place in the “Economic Resilience” factor, a domain that measures the economy’s ability to withstand business cycles, telling a remarkable success story supported by strong economic management, effective legislation, inclusive support, and sustainable economic growth.

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The year 2023 marked a significant milestone for the Saudi economy, affirming the effectiveness of current practices and policies across various sectors. Saudi Arabia’s 1st place ranking in long-term employment growth highlights the success of implemented policies and the increasing dynamism of the private market in attracting employees. However, challenges remain for 2024, with key areas for the labor market including efforts to increase productivity, inclusiveness, and sustainability, and to maintain economic resilience. Achieving these goals will require ongoing efforts to enhance the business environment and boost private sector economic participation. A crucial catalyst for achieving these objectives is continued investment in human capital development across all economic sectors, in alignment with Vision 2030.

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