- consistently mena region’s most economically free country -
15 January 2014, Manama: According
to the annual Index of Economic Freedom published by The Heritage Foundation
and the Wall Street Journal, Bahrain remains the Middle East / North Africa
(MENA) region’s most economically free country. Overall, the Kingdom is ranked
13th out of 178 economies worldwide, between the United States and the United
Kingdom which rank 12th and 14th respectively, and is the
only MENA country to rank in the top 20. In the 20 year history of the index
Bahrain has consistently achieved a score greater than 70, well above the world
average. The Kingdom’s 2014 economic freedom score is 75.1.
The report
highlights that the
Kingdom’s “transition to greater openness and diversification is based on
foundations of economic freedom,” and that Bahrain “continues to be a financial
hub for dynamic economic activity, with high levels of trade and investment
bolstered by a competitive and efficient regulatory environment”. According to
the report, Bahrain has improved its economic freedom score in a number of
categories at an above-average rate since index grading began 20 years ago,
particularly in the areas of financial freedom, investment freedom and labour
freedom.
Kamal
bin Ahmed, Minister of Transportation and Acting Chief Executive of the Bahrain
Economic Development Board (EDB), said: “We are delighted that Bahrain’s
efforts to improve economic freedom and the Kingdom’s strong economic
fundamentals have again been recognised in the Index of Economic Freedom.
Bahrain’s leading position and consistent high ranking over the last 20 years
is a reflection of efforts to ensure we provide investors with the free and
open business environment they need so we can continue to deliver sustainable
growth for Bahrainis.”
The 2014 Index of Economic Freedom (http://www.heritage.org/index/)
measures the
level of economic freedom in 10 pillars: business freedom, trade freedom,
fiscal freedom, government size, monetary freedom, investment freedom,
financial freedom, property rights, freedom from corruption and labor freedom.
The report has positive comments on Bahrain’s open market environment,
stating that the Kingdom has a low average tariff rate and relatively few
non-tariff barriers, favourable tax regime with most businesses exempt from
taxation and no personal tax, and on the ease of starting a business which
costs less than 1 percent of the level of average annual income.
Bahrain’s ranking reflects the Kingdom’s competitive
advantage as a location for investment into the Gulf market, an economy now
worth $1.5 trillion. Strategically located at the heart of the Gulf, Bahrain
has long been considered the gateway to the region, with easy access to the
large economies of Saudi Arabia, Kuwait and Qatar. In September 2013, the
Fraser Institute’s annual Economic Freedom of the World Index ranked Bahrain as
the eighth freest economy in the world.
