Tuesday, 02 January 2024 12:17 GMT

Oman climbs four places in economic freedom ranking

2016-02-10 12:50:03

(MENAFN- Muscat Daily) Muscat-

Oman was ranked the sixth freest economy in the Middle East and North Africa region in the 2016 Index of Economic Freedom an annual publication of the US-based think-tank Heritage Foundation and the Wall Street Journal.

The sultanate ranked 52nd out of 186 countries climbing four notches from 56 in the 2015 survey. Among the GCC nations Oman was ranked higher than Kuwait (74) and Saudi Arabia (78) but lagged behind Bahrain (18) the UAE (25) and Qatar (34).

The survey published last week gave Oman an overall score of 67.1 out of 100 well above the world average of 60.7. Hong Kong topped the list with an overall score of 88.6 followed by Singapore with 87.8.

The report termed Oman's economy as 'moderately free'.

Launched in 1995 the Economic Freedom Index evaluates countries on four broad policy areas that affect economic freedom: Rule of law; limited government; regulatory efficiency; and open markets.

The report said that recognising the need for a more broad-based and vibrant private sector Oman has undertaken regulatory reforms and modernisation of its economy. 'Oman's small open economy is driven mainly by energy. Tax rates are competitively low and foreign investment is generally welcome.'

The Heritage Foundation report said the Oman government is trying to expand exports of liquefied natural gas; develop gas-based industries; and encourage foreign investment in petrochemicals electric power and telecommunications.

With the unemployment rate at 7.2 per cent the report said 'Oman is also trying to replace foreign workers with local staff to reduce chronically high unemployment.'

According to the report the sultanate's 2016 economic freedom ranking climbed on the back of improved scores in business freedom monetary freedom trade freedom and investment freedom.

'Oman's average tariff rate is 2.5 per cent. The government screens foreign investment and ownership levels in many sectors of the economy are capped. The banking sector continues to evolve with commercial banks performing well. Most credit is offered at market rates but the government uses subsidised loans to promote investment' it said.

However Oman's scores declined in terms of government spending labour freedom and freedom from corruption.

It said that the economic freedom in the UAE has advanced for the eighth year in a row. 'With a transparent and favourable business climate and a high degree of political stability the UAE has created a dynamic entrepreneurial environment for international investors.'

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