The report cites Bahrain’s competitive and efficient regulatory environment, which has ensured the country remains the region’s financial hub - home to more than 400 banks and financial institutions. The financial sector accounts for 25% of the country’s GDP. The findings reflect the success of a decade of social and economic reforms, according to Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Economic Development Board (EDB) and the enduring attractions of Bahrain to foreign investors. Such reforms are enshrined in Bahrain’s Vision 2030, the blueprint for the development of the country’s economy, government and wider society over the coming decades.Â
Shaikh Mohammed said: “Bahrain’s consistently leading position in the Index is an important validation of its reform programme and underlines that the Kingdom’s economic fundamentals remain as strong as ever. The country has focused on creating sustainable long-term growth, through a sound and flexible economic and fiscal policy, a highly skilled workforce, diversified economy, rule of law and well-run, transparent regulation. These same measures provide the best business environment for companies looking to access the trillion dollar Gulf market.”
The Index of Economic Freedom measures 10 specific freedoms such as Trade, Business, Fiscal, and Financial. Bahrain scores above the world average across all pillars and registers particularly impressive scores in Fiscal Freedom (99.9), Labour Freedom (91.1) and Trade Freedom (82.8), out of a total score of 100. The EDB itself has the overall responsibility for creating the right climate to attract foreign economic investment under the guidance of His Royal Highness Prince Salman Bin Hamad Al Khalifa, the Crown Prince and Chairman of the EDB.
The Index also highlights that as one of the region’s least oil-dependent economies – the most diversified in the Gulf – Bahrain benefits from its competitive and efficient regulatory environment; competitive tax regime; a sophisticated financial sector that facilitates the free flow of capital and foreign investment; a modern communications and transportation infrastructure; a cosmopolitan outlook; and a Free Trade Agreement with the US. It argues that that Bahrain’s openness to global commerce is sustained by its “competitive and efficient regulatory environment” and that “despite the challenging environment, Bahrain continues to be a financial hub for dynamic economic activity.”Â
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