DOHA: The World Governments Summit unveiled the second edition of the Productivity Potential Index (PPI), created in collaboration with Strategy& Middle East, part of the PwC network.
This latest edition builds on last year’s launch by expanding its scope to include 60 countries, up from 25, offering an even more comprehensive look at what drives productivity in today’s world.
With its innovative framework, the PPI redefines how productivity is measured, integrating dimensions critical for our age such as environmental sustainability, wellbeing, innovation, and institutional quality.
The report estimates the untapped potential of Gulf Cooperation Council (GCC) economies, showing how improving their weakest productivity determinants could accelerate regional GDP growth from 3.5% to 6.0%, adding $2.8 trillion to the region’s GDP over the next decade. Overall, if all countries in the PPI sample were to improve their weakest productivity indicator to match that of the best-performing peers, it could boost the global economy by $87 trillion.
Regionally, Saudi Arabia leads among the GCC countries with the PPI score of $69.3 per hour worked, followed by Kuwait ($60.8),Qatar ($57.2), and Bahrain ($56.9). The UAE scored $48.7 per hour worked in the analysis.
Notably, Bahrain, Qatar, Saudi Arabia and the UAE rank among the global Top 10 in the ‘physical capital’ pillar, adding $22-24 per hour worked to their productivity potential.
Physical capital refers to reliable infrastructure, well-maintained equipment, and appropriately applied technologies that all contribute to better productivity GCC’s success demonstrates how targeted policies and investments in manufacturing, logistics and internet infrastructure can drive rapid growth across sectors.
Dima Sayess (pictured), partner at Strategy& Middle East and director of the Ideation Center, emphasized the transformative potential of the findings: “Our analysis shows that non-traditional measures of productivity are shaping the direction of change regionally and globally. Social trust, the quality of institutions and environmental indicators all play a role in driving, or hindering, economic growth. Understanding these mechanisms can enable policymakers to develop effective and targeted solutions.”
