(MENAFN- Khaleej Times) The UAE ranks well ahead of other major economies in the Middle East and North Africa (Mena) region on a worldwide human capital index topped by Finland, according to the World Economic Forum''s (WEF) Human Capital Report 2016.
The UAE, ranked 69, has a score of 68.25, and benefits significantly from the strong perceived quality of its primary schools (13) and overall education system (12); but it also reports some of the lowest tertiary and vocational enrolment rates in the index in the 15-24 age group.
According to the WEF index, which measures countries'' ability to nurture, develop and deploy talent for economic growth, the UAE has a working-age population of 7.85 million out of a total 9.27 million. The median age of the UAE''s population is 33 years and the GDP per capita is $67,674 in purchasing power parity terms - among the highest in the world. Population below 25 years comprises 26.9 per cent while above 65 years is 1.2 per cent. Employment to population ratio is 69.4 per cent while unemployment rate is 4.2 per cent.
In the Middle East and North Africa, Bahrain (46) and Qatar (66) also outperform the rest of the region in terms of making the best use of their human capital potential, the WEF report said.
However, Gulf countries are missing big opportunities when it comes to making the most of their population''s economic potential, said the report.
Kuwait and Saudi Arabia are the worst offenders in the region for optimising its workforce talent during all stages of the working life time. Kuwait ranked 97th out of 130 countries covered, with just 60 per cent of its talent being realised while Saudi Arabia (87th) fares little better with 63 per cent.
Bahrain was ranked the best Gulf nation but it was only placed 46th globally with a 72 per cent score.
At the top, Norway (2) and Switzerland (3) are nearly tied and gaining ground on Finland''s number one position. All three are effectively utilising about 85 per cent of their full human capital potential, said the report.
India was ranked low at 105th position globally on the index, much below China''s 71st position while Bangladesh, Bhutan and Sri Lanka are also placed higher on the index released by the Geneva-based WEF. Pakistan ranks further lower at 118th place.
Giving India 105th rank, the WEF said the country has optimised just 57 per cent of its human capital endowment - placing it in the top of the bottom quartile of the index.
"Today''s transition to the Fourth Industrial Revolution, combined with a crisis of governance, creates an urgent need for the world''s educators and employers to fundamentally rethink human capital through dialogue and partnerships," said Klaus Schwab, founder and executive chairman of the WEF. "The adaptation of educational institutions, labour market policy and workplaces are crucial to growth, equality and social stability."
On the global index, Japan and Sweden have moved up to fourth and fifth places and are followed by New Zealand, Denmark, the Netherlands, Canada and Belgium in the top 10.
Among Brics countries, India is ranked lowest as against Russia''s 28, China''s 71, Brazil''s 83 and South Africa''s 88.
Countries ranked below India include Nepal, Myanmar, Haiti, Malawi and Burundi while Mauritania, Yemen, Chad, Nigeria and Mali are placed in the bottom-five with below 50 per cent talent optimisation.
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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE''s mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.