BCG (Montreal): The UAE’s competitiveness strategy: The use of international benchmarks to guide policy
TITLE
The UAE’s competitiveness strategy: The use of international benchmarks to guide policy.
ABSTRACT
In less than two generations, the UAE transformed itself from an unknown, sparsely-populated desert nation into a globally competitive country that is home to the Arab world’s first global city (Dubai). The nation is now a tourism hot spot that is home to several global brands, including Emirates Airlines. The nation is also favourably known for its foresight in developing a large SWF that has been used to spur research and innovation in the country (e.g. Mubadala). The UAE was, on paper, one of the least likely place in the Arab world to become its leading nation. Although hydrocarbon wealth initially catapulted the nation, today it accounts for less than a quarter of its GDP, and just 2 percent of output in Dubai.
Underpinning the Emirate’s meterioric rise is strategic policy planning by the government through the use of third-party international benchmarks to incentivise both public and private sector stakeholders. Competitiveness KPIs have enabled a high degree of transparency within the UAE, a quality missing from much of the region. Most notably, the nation’s strategic development goals (Vision 2021) target outcomes in international competitiveness reports.
BIO
Dr. Kai L. Chan is distinguished fellow at INSEAD (Abu Dhabi), where he is part of the Innovation & Policy Initiative. Additionally, he advises the UAE government on matters of competitiveness and statistics, with a focus on the use of third-party KPIs to steer policy. Kai also worked on Dubai’s successful bid for Expo 2020, where he modelled the visitor projections and revenues.
Before moving to Dubai in 2011, Kai worked at a boutique advisory and investments firm in New York in the specialty finance space. Before that he worked in the Singapore office a global management consulting firm with projects covering risk management and strategy for banks in Europe and East Asia.
Dr. Chan holds a BSc in economics & mathematics from the University of Toronto, and an MA and PhD in economics from Princeton University where he wrote his dissertation on monetary policy.
Kai grew up in Toronto, Canada. He speaks English, French, Cantonese, Mandarin and German, and is currently learning Russian.
