Gulf States: 2018 Index Economic Freedom
In report ranks the UAE and Qatar in the “mostly free” category. Three others are Bahrain, Oman and Kuwait are regarded as “moderately free” and unfairly placed among the “mostly un-free category” is the Saudi Arabia
Gulf states have by and large suffered a drop in their rankings in the 2018 Index of Economic Freedom, an adverse development that partly reflects the growing competition among economies to offer such freedoms.
UAE is ranked the 10th in the world, the report acknowledges the liberal business environment prevailing in the United Arab Emirates.
Qatar maintained its ranking of 29th place, Qatar receives high marks for its limited tax and fiscal burdens.
Bahrain is ranked 50th, in turn used in marketing the country’s economy to prospective international investors. Bahrain had conceded the position to the UAE ever since the 2017 report.
Kuwait at the 81st ranking, Kuwait gets a low ranking on government integrity, clearly due to the constant differences between the cabinet and elected parliament. The report is worried about absence of progress on enhancing efficiency of the business law.
Oman is ranked 93rd, the sultanate’s main shortcoming concerns the budgetary deficit. The projected deficit for fiscal year 2018 stands at $7.8 billion, or about 10 per cent of GDP. The study calls for an improvement in the business environment, partly via overcoming bureaucratic regulations.
And Saudi Arabia at the 98th ranking, the kingdom must overcome the steep fiscal burden on the one hand and enhance laws relating to property and investments on the other. Looking forward, the Vision 2030 with its emphasis on local and foreign investments should help the kingdom’s ranking.
Six countries are not ranked, which are Iraq, Yemen, Libya and Syria, due to a lack of sufficient data.
The index relies on many factors such as;
- property rights and freedom from corruption
- regulatory efficiency
- specifically, business
- labour and monetary freedom
- limited government,
- essentially governmental spending and fiscal freedom
- open markets
Each variable carries 10 points on the 100-point maximum scale.
Global appreciation of the role of economic freedom in unleashing capability and concept. The Gulf countries have the potential to achieve outstanding results, same as what UAE done.
Source: Gulf News