By Gavin Davids
Gulf state ranks 10 on global index, outstripping UAE, Saudi Arabia, Qatar and Kuwait
been ranked one of the top countries in the world to do business, placing above
the UK, Japan and the powerhouses of Germany and France, a new report has said.
The Gulf state
outstripped neighbouring Qatar, Saudi Arabia, Kuwait and the UAE to place 10 of 183 countries in the 2011 Index of Economic Freedom, on spot below the
Top of the
list was Hong Kong, followed by Singapore and Australia.
the highest ranking country among 17 from the MENA region, according to the
list that measures commitment to free enterprise.
to smooth the path for foreign investment and its bid for economic
diversification were key factors in its jump up the rankings, said notes accompanying
to structural reforms and openness to global commerce have enabled Bahrain to
become a financial hub and the regional leader in economic freedom,” analysts
“As one of
the region’s least dependent oil economies, it benefits from a competitive tax
regime and a sophisticated financial sector that facilitates free flow of
index warned of the looming threat of high unemployment – an estimated 15
percent of Bahrain’s one million citizens are unemployed, it said.
that, the island is expected to see 5.9 percent compound annual growth over the
next five years and a GDP of around $28.1bn.
states, in contrast, did not fare as well. Qatar was the second highest-placed at
No.27, while Oman and UAE – at 34 and 47 - were the only other GCC states to
rank in the top 50.
ranking was undermined by the emirate’s dependency on energy and its restrictions
on foreign investment, the index said.
attempts have been made to diversify, oil and gas continue to account for about
85 percent of export revenues and about 50 percent of GDP.
for its high rate of state spending and efforts to lure FDI, seeing it rise 2.1
points from its 2010 rank, the index said.
which narrowly made the top 50, won praise for its efforts to tackle
corruption. However its rating was hit hard by the collapse of its real estate
market in the wake of the economic crisis, the index said.
forward, the UAE must boost transparency of public finances, centralised debt
management and ensure an independent legal framework, the index noted.
Arabia and Kuwait ranked the worst in the GCC, coming in at No.54 and No.61
respectively, hampered by their dependency on the oil industry.
The index measures 10 categories of economic freedom,
including openness to trade and investment, business and labour regulation,
property rights, corruption, monetary stability and financial competition.
Yes well done Bahrain, but if you asked any multinational where they would base an HQ it would far more likely be in the UAE. Why is that if the UAE is so poor for economic freedom? It is the index that is wrong not business judgment!
Maybe because choosing a headquarter involves more than economic freedom? Infrastructure may be more relevant (airport) also you have network effects (why do most advertising comapnies were located in Madison Avenue? why hedge funds are located in the same few streets in London?).
The index may be more relevant for startups and may also be more relevant to understand trends than for explaining current situation.