In its latest publication titled “The Arab World Competitiveness Report 2018”, the World Economic Forum provides a comprehensive summary of the drivers of productivity and competitiveness in the Arab world in addition to stating the strengths of the Arab countries’ economies.
Lebanon ranked 105th of 137 in terms of overall competitiveness ,last in the MENA Region .In fact, the Global Competitiveness Index is measured based on 3 subindices : Basic requirement , Efficiency enhancers and Innovation and sophistication factors in which Lebanon is ranked the last , 8th and 6th ,respectively in the MENA region. In fact, Lebanon tried to initiate and sustain progress in export diversification, mainly in services, and has sustained private-sector investment of about 23 percent of GDP . However, the country faces problems at macroeconomic and labor market levels. Moreover, the situation in Syria and the large influx of refugees has further drained economic resources and put the national health and education systems under pressure. Finally, according to the World Economic Forum’s Executive Opinion Survey, policy instability and corruption in Lebanon are among the most problematic factors for business.
It is worth mentioning that KSA(30TH) , Qatar( 25TH) and UAE (17th) hold the top 3 ranking in MENA. As per the report , the Arab countries should implement new ways to produce economic resources and distribute them. One of the key challenges facing oil rich countries is the lack of diversification .The transition can be done by supporting the private sector investment and helping the financial sector to meet the need of small and medium enterprises, improving the quality of education, ensuring opportunities for the youth and the workforce of the future and supporting the development of angel investments.