Kuwait ranks 66th in Global Trade Resilience Index 2023

Logistics performance scrutinized

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KUWAIT CITY, Dec 13: In the inaugural edition of the Global Trade Resilience Index 2023 by Whitechild International Specialized Consulting, Kuwait found itself at the crossroads of global economic evaluation, securing the 66th position worldwide and the seventh position among Arab nations. This comprehensive index, unveiled on the sidelines of the prestigious Conference of the Parties on Climate Change (COP28) in Dubai, served as an illuminating lens into the resilience and adaptability of nations in the face of global trade challenges. Concurrently, the United Arab Emirates, with its strategic economic prowess, claimed the top spot in the Arab world and an impressive 31st rank on the global stage.

The unveiling of the index brought to the forefront Kuwait’s performance across a triad of pivotal indicators, offering nuanced insights into the nation’s strengths and areas for improvement. Notably, one significant revelation emerged in the “Operations Network Resilience Index,” a sub-indicator gauging the quality of logistics services, customs capabilities, and the robustness of infrastructure, encompassing roads, ports, and airports. In this realm, Kuwait scored 43.1 out of 100, placing it at the 80th position globally—a facet deserving of scrutiny for policymakers and stakeholders alike.

Despite this particular setback, Kuwait showcased commendable performance in the other two sub-indices. The “Trade Network Flexibility” sub-index, evaluating the adaptability and diversity of trading partners, positioned Kuwait at a respectable 64th globally with a score of 50.3 points. Similarly, in the “Institutional Network Flexibility” subindex, measuring the efficacy of laws, systems, governance, and economic performance, Kuwait stood at the 42nd position globally, with a score of 59.3 points.

These results paint a nuanced picture of Kuwait’s economic landscape, indicating strengths in certain dimensions while pointing toward targeted areas for enhancement. Expanding the canvas to the broader business environment, Kuwait distinguished itself positively in the “Institutional Network Flexibility” sub-index. This sub-index, delving into the nation’s legal framework, systems, governance, and economic performance, underscored Kuwait’s robust institutional foundations. Moreover, the “Trade Network Flexibility Index,” assessing the importance of location and the diversity of trading partners and the strength of commercial entities, portrayed Kuwait as a player with strategic foresight and adaptability in the global trade arena.

Zooming out to a global perspective, the index highlighted other notable regional performers. Qatar secured the second position in the Arab world, positioned at 46th globally, with the Kingdom of Saudi Arabia following closely in third place at the 47th position globally. Morocco, securing the 48th position globally, claimed the fourth spot in the Arab world. These rankings underscore the varied economic landscapes and trade resilience capabilities across the Arab region. At the global zenith of the index were economic powerhouses, with Germany leading the pack, followed by the Netherlands, the United States of America, and France.

The report emphasized the dominance of countries evolving into global commercial hubs, with the UAE serving as a prime example, thanks to its significant role as a major global commercial center and a conducive environment for business activities. Beyond the quantitative evaluations, the report underscored the broader significance of the Global Trade Resilience Index as a pivotal tool for assessing countries’ capacities to recover swiftly after exposure to trade-related shocks. In particular, it drew attention to the aftermath of the COVID-19 pandemic, highlighting the critical role of international cooperation in bridging the gap between supply and demand during times of crisis.

The report posited the index as an initiative geared towards contributing to global trade policy discussions and fortifying the sustainability of economies worldwide. During the launch of the report in Dubai, Whitechild International Specialized Consulting framed it as an unprecedented methodology aimed at supporting countries in identifying pathways to enhance their capacity to withstand and recover from business fluctuations. The overarching goal, as articulated by Whitechild, was for the report to play a pivotal role in achieving the conference’s objectives, especially in areas that leverage trade and supportive policies to stimulate climate protection measures and promote sustainable development. Notably, the UAE’s inclusion of global trade on the agenda of COP28 marked a significant milestone, aligning with the conference’s broader goals and reflecting a growing acknowledgment of the interconnectedness between global trade dynamics, climate protection, and sustainable development.

This convergence of global economic discourse and environmental imperatives underscores the evolving nature of international cooperation and the multi-faceted role that trade policies play in shaping the trajectory of nations in an increasingly interconnected world. As nations grapple with the challenges of a post-pandemic era, the Global Trade Resilience Index stands poised to become an invaluable compass, guiding policymakers and stakeholders toward informed decisions that foster economic resilience, sustainability, and inclusive development.

By Mahmoud Shendi
Al-Seyassah/Arab Times Staff

This news has been read 1541 times!

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