World Economic Forum rates Netherland’s competitiveness

Global Competitiveness Report 2010-2011

Switzerland tops the overall rankings of The Global Competitiveness Report 2010-2011, released on 9 September 2010 by the World Economic Forum. The United States comes in 4th after Sweden in 2nd and Singapore in 3rd position.

Nordic countries remain well positioned, with Sweden in 2nd , Denmark in 9th and the Netherlands in 8th position. Norway is in 14th place and the United Kingdom moves up into 12th after having fallen in the rankings in recent years.

The Netherlands: excellent educational system and efficient factor markets

Dutch businesses are highly sophisticated (ranked 5th) and are among the most aggressive internationally in absorbing new technologies for productivity enhancements (ranked 3rd for their technological readiness).

The country’s excellent educational system (ranked 8th and 10th for the two related pillars) and efficient factor markets, especially goods markets (ranked 8th), are highly supportive of business activity. The Netherlands is also characterised by a comparatively stable macroeconomic environment, which has improved compared to last year.

The report is a boon for The Netherlands and the Amsterdam Metropolitan Area. The Amsterdam area is an optimal base for entering or expanding to the EMEA (Europe, Middle East and Africa) region. The main reasons for this are:

• International trade hub: The Dutch are noted for their open economy with one of the strongest orientations toward international trade in the world. The Netherlands leads as a European nation in attracting foreign investment and has run a sizeable current account surplus for years.

• Strategic geographical location: the region has always been a major transit hub for people, goods, capital and services to and from the 350 million potential customers on the European continent.

• Excellent infrastructure: major port complexes are located within a 50 km radius, the region offers international rail links, and close proximity to Amsterdam Airport Schiphol.

• Largest data transport hub in the world: the Amsterdam Internet Hub (AMS-IX) is the world’s largest and most stable digital exchange platform, known for its superior quality and low cost.

• Frontrunner in globalisation: the well-developed Dutch service industry is globally orientated. The Amsterdam area provides access to all the important global players and to knowledge related to organising logistics, ICT, tax and legal issues or sales and marketing in Europe.

• The service sector is highly competitive and works for wages that are on average lower than in other major European cities.

• The Amsterdam Metropolitan Area offers a multilingual, internationally oriented and highly qualified workforce. More than 80% speak English and approximately 40% have a university degree or higher professional education.

• Efficient and cost effective: The Dutch legal system is efficient, with transparent laws and a competitive tax system which allows the highest possible return on investments.

• Competitive tax regime: companies established in the Netherlands profit from various tax advantages which include a competitive corporate tax rate of 25%, no withholding tax on outgoing interest and royalty payments and double taxation relief.

• Excellent test market: the Netherlands has the reputation of being one of the best markets to test when entering the European market and beyond. The Dutch adapt easily and because of the relatively small home market, it is easy to examine.

• Gateway to affluent customers: With a GDP per capita among the highest in the world and the excellent international trade routes that provide access to the EMEA (Europe, Middle East and Africa) and beyond, Amsterdam allows businesses to tap into the most attractive customer markets in the world.

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