Bahrain Leads MENA Region on Economic Freedom

- 16th Freest Economy in the World –

MANAMA, Bahrain, Jan. 13 /PRNewswire/ — Bahrain has been ranked as the 16th freest economy in the world and most free in the Middle East and North Africa region in the annual Index of Economic Freedom, published by the Heritage Foundation and The Wall Street Journal.

Bahrain was the only Middle Eastern country to be ranked amongst the top 20 freest economies in the world and has been ranked No.1 in the GCC for 15 years, since the launch of the Index in 1995.

Bahrain’s ranking of 16th was an improvement on its 2008 ranking of 19th. With an average total score of 74.8%, Bahrain’s position in the top 20 puts it alongside Switzerland (9th), United Kingdom (10th) and Japan (19th) and ahead of Germany (25th), Spain (29th) and France (64th).

The Index of Economic Freedom 2009 ranked 179 countries across 10 areas of economic freedom — business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom. An overall average was then calculated from these scores.

Bahrain again scored highly in the business freedom, trade freedom and fiscal freedom categories and made a significant improvement in the area of labour freedom, improving its score from 40 in 2008 to 85.1 in 2009. Bahrain scored well above the global average in a total of 9 out of 10 of the areas measured and equal to the average in the tenth.

Annual analysis that accompanies the publication of the Index confirms the tangible benefits of living in freer societies. Higher levels of economic freedom are associated with a higher level of per capita gross domestic product (GDP) and GDP growth rates also increase as a country’s economic freedom score improves.

Shaikh Mohammed Bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board (EDB), said: “Bahrain’s ranking is further endorsement of our strong pro-business environment from highly regarded institutions such as the Heritage Foundation and The Wall Street Journal.

“Economic freedom is more important than ever for businesses during these difficult times. And for Bahrain it supports growth and contributes to long term stability. The results of this year’s Index further demonstrate Bahrain’s status as a location from which international companies can access markets across the Gulf. This position is reinforced by Bahrain’s strong business track record and experience, fair and effective regulation, well developed infrastructure, our educated, skilled work force and open, hospitable and tolerant environment.”

Notes to Editors

About the Index of Economic Freedom

The Index of Economic Freedom 2009 is the 15th released by the Heritage Foundation and Wall Street Journal. The Index tracks the march of economic freedom around the world. Since 1995, the Index has measured economic freedom by looking at 10 benchmarks that gauge the economic success of countries around the world. Each one of the 10 freedoms is graded using a scale from 0 to 100, where 100 represents the maximum freedom. A score of 100 signifies an economic environment or set of policies that is most conducive to economic freedom. The 10 freedoms measured are: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom.

About The Heritage Foundation

The Heritage Foundation is the US’s most broadly supported public policy research institute, with more than 393,000 individual, foundation and corporate donors. Heritage, founded in February 1973, has a staff of 244 and an expense budget of $61 million. It’s mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.

About The Wall St Journal

The Wall Street Journal is the world’s leading business publication. Founded in 1889, The Wall Street Journal has a print and online circulation of nearly 2.1 million, reaching the nation’s top business and political leaders, as well as investors across the country. Holding 33 Pulitzer Prizes for outstanding journalism, The Wall Street Journal provides readers with trusted information and knowledge to make better decisions. The Wall Street Journal print franchise has nearly 750 journalists world-wide, part of the Dow Jones network of nearly 1,800 business and financial news staff. Other publications that are part of The Wall Street Journal franchise, with total circulation of 2.6 million, include The Wall Street Journal Asia, The Wall Street Journal Europe and The Wall Street Journal Online at WSJ.com, the largest paid subscription news site on the Web.

About the Bahrain Economic Development Board (EDB)

The Bahrain Economic Development Board (EDB) is a public agency with overall responsibility for formulating and overseeing the economic development strategy of Bahrain, and for creating the right climate to attract direct investment into the Kingdom.

The role of the Bahrain EDB is to provide leadership by uniting all of the Kingdom’s shareholders through a unified vision, and to develop key strategies for growth. The Bahrain EDB also acts as a facilitator, helping all of Bahrain’s stakeholders to understand and adopt the changes necessary for progress. In addition, the

Bahrain EDB provides sound project management to ensure that all agreed reform initiatives are implemented in an effective and timely manner.

The Bahrain EDB is also responsible for attracting inward investment into Bahrain, and is focusing on six target economic sectors in which the Kingdom offers significant strengths. These are financial services, downstream industries, tourism, business services, logistics, and education and training.

More information on the Bahrain EDB is available on its website at www.bahrainedb.com

Further information

    Farah Mattar, Senior Officer, Global Communications, EDB
    Tel: +973 17 589 999
    Email: internationalmedia@bahrainedb.com

    Franciscka Lucien, Weber Shandwick
    Tel: 212.445.8388
    Email: flucien@webershandwick.com

SOURCE The Bahrain Economic Development Board (EDB)