Kuwait Is 66th In The 2023 Global Trade Resilience Index

According to the Global Trade Resilience Index 2023 by Whitechild International Specialized Consulting, Kuwait placed 66th worldwide and 7th among Arab nations in the first edition. Presented at the prestigious Conference of the Parties on Climate Change (COP28) in Dubai, this comprehensive index provides insight into the resilience and adaptability of nations to global trade challenges. On the global stage, the United Arab Emirates, with its strategic economic prowess, ranked 31st and topped the Arab world.

As a result of the index, Kuwait's performance across a triad of pivotal indicators was highlighted, offering nuanced insights into the nation's strengths and shortcomings. An important discovery was made by the "Operations Network Resilience Index," a sub-indicator that measures the quality of logistics services, customs capabilities, and the robustness of infrastructure. 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 setback, Kuwait's performance in the other two subindices was commendable. Kuwait ranked 64th globally with 50.3 points on the "Trade Network Flexibility" sub-index, measuring adaptability and diversity of trading partners. In the "Institutional Network Flexibility" subindex, which measures laws, systems, governance, and economic performance, Kuwait placed 42nd with 59.3 points.

According to these results, Kuwait's economic landscape is nuanced, indicating strengths in certain dimensions and highlighting areas for improvement. Kuwait distinguished itself positively in the "Institutional Network Flexibility" sub-index when expanding the canvas to the broader business environment. By examining Kuwait's legal framework, systems, governance, and economic performance, this sub-index highlighted Kuwait's strong institutional foundation. In addition, the "Trade Network Flexibility Index," which assesses the importance of location, diversity of trading partners, and the strength of commercial entities, portrays Kuwait as a global trade player with strategic foresight and adaptability.

The index also highlighted other noteworthy regional performers from a global perspective. 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. Global Trade Resilience Index is poised to serve as an invaluable compass for policymakers and stakeholders grappling with the challenges of a post-pandemic era, guiding them toward informed decisions that foster economic resilience, sustainability, and inclusive growth.

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