Bahrain ranks 70th on Forbes 'best countries for business' list
Bahrain has ranked a 70th out of 144 nations on Forbes' annual list of the best countries for business in 2015, scoring poorly on metrics like monetary freedom, personal freedom and market performance.
However the kingdom showed substantial improvement in trade freedom, property rights, innovation, technology, red tape, investor protection, corruption and tax burden.
Denmark topped the list of the 144 nations on the Best Countries of Business in 2015 list by Forbes, followed by New Zealand and Norway.
The US has dropped four spots to number 22, continuing a six-year descent since 2009 when it had ranked second overall.
The US is the financial capital of the world and its largest economy at USD 17.4 trillion (China is second at USD 10.4 trillion), but it scores poorly on monetary freedom and bureaucracy/red tape, Forbes said.
Among the GCC countries, UAE emerged first with a global rank of 40th, followed by Qatar in 48th place.
Saudi Arabia came in 74th place, Kuwait 76 and Oman 77.
The economic data is from 2014 and the market performance is based on the country’s major stock index returns for 12 months through December 9.
According to Forbes, Bahrain’s GDP Growth is 4.5%, GDP per Capita $49,000, Trade Balance/GDP 3.3%, Population 1.3M, Public Debt/GDP 42%, Unemployment 4.1% and Inflation 2.7%.
"Bahrain has made great efforts to diversify its economy; its highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf,” Forbes said.
“As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state.
“Bahrain's economy, however, continues to depend heavily on oil.
“In 2013, petroleum production and refining accounted for 73% of Bahrain's export receipts, 88% of government revenues, and 21% of GDP.
“Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction.”
Forbes also pointed out that Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries.
In 2011 Bahrain experienced economic setbacks as a result of domestic unrest, however, the economy recovered in 2012-14, partly as a result of improved tourism.
Lower oil prices in 2015 will likely exacerbate Bahrain's budget deficit, Forbes observed.
Meanwhile the UK and Japan both moved up three spots to No 10 and No 23 respectively. Germany improved two places to No 18 and China rose from No 97 to No 94.
South Africa is ranked 47th on the list followed by Mexico (53), Kazakhstan (57), Zambia (73), Ghana (79), Russia (81), Sri Lanka (91), India (97), Pakistan (103) and Bangladesh (121).
The very bottom of the list features a number of emerging markets restrained by high levels of corruption and little freedom.
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