(MENAFN- Muscat Daily) Oman was ranked the sixth freest economy in the Middle East and North Africa (MENA) region in the 2014 Index of Economic Freedom report, an annual publication of the Heritage Foundation and the Wall Street Journal, released last week.
Oman's economic freedom score came in at 67.4, out of a score of 100, making its economy the 48th freest in the world. Oman's overall score remains well above the world and regional averages.
''Oman's score was 0.7 point lower than last year due to declines in the management of government spending and labour freedom that outweigh improvements in investment freedom and monetary freedom,'' according to the report.
The index rated Oman's economy as ‘moderately free.'
Bahrain, with a score of 75.1, was the 13th freest economy in the 2014 global index and the leader among nations in MENA. UAE was ranked second in MENA and 28th in the world. In the GCC, Oman has been rated the fourth freest economy, ahead of Kuwait and Saudi Arabia.
The report said that Oman's overall economic freedom remains constrained by state involvement in the economy through public enterprises.
''Reliance on a large state-owned energy sector that boosted economic expansion over the past decade has left Oman vulnerable to external shocks. Oman is relatively a small oil exporter. The government is trying to expand exports of natural gas, develop gas-based industries, and encourage foreign investment in petrochemicals, electric power and telecommunications. It also stresses Omanisation to reduce chronically high unemployment,'' the report added.
The 2014 report, covering 178 countries, finds economic freedom advancing worldwide despite challenging economic and political environments. The global average economic freedom score reached 60.3, the highest ever recorded in the 20-year history of the index.
''Much of the momentum lost during the past five years has been regained,'' the report said.
However, it said overall economic freedom declined last year in the turmoil-filled MENA.
Launched in 1995, the index evaluates countries in four broad areas of economic freedom: Rule of law; regulatory efficiency; limited government; and open mark
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