According to the 2022 Index of Economic Freedom published by the Heritage Foundation, Bahrain ranked first in MENA for financial, investment, and trade freedom. Amongst MENA countries, Bahrain ranked 4th for overall economic freedom.
According to the report, Bahrain’s “overall investment framework remains transparent, and foreign and domestic investors are treated equally. The financial system remains vibrant and generally free from government involvement. No restrictive measures have been implemented in the banking sector during the past year,” and “the government maintains a pro-business commercial environment and supports business start-ups.”
The 2022 Index of Economic Freedom measures the level of economic freedom based on 12 factors, grouped into four categories: rule of law, government size, regulatory efficiency, and open markets.
Commenting on the report, Ali Al Mudaifa, Chief Investment Officer at Bahrain EDB, said: “Bahrain’s high ranking amongst countries in the region is a reflection of the country’s business-friendly environment and forward-looking regulations. We’ve got exciting plans ahead of us in line with the Economic Recovery Plan, which aims to attract investments worth US$2.5 billion into the country by 2023 through the enhancement of our overall business environment.” Companies in Bahrain benefit from a range of competitive advantages and opportunities, which can be identified and leveraged with the support of the EDB’s team that has the expertise and resources to get companies off the ground. These competitive advantages include the country’s 45% operational cost savings compared to the rest of the region, and its pioneering regulation, which is reflected by Bahrain ranking 2nd globally for tax burden in the 2022 Index of Economic Freedom.