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Bahrain ranks 55th in economic freedom

Bahrain has been ranked 55th freest economy in the world, according to the 2025 Index of Economic Freedom released by The Heritage Foundation. The kingdom achieved a score of 65.6, an increase of 2.2 points from the previous year.

The index, which evaluates 184 economies, places Bahrain fourth out of 14 countries in the Middle East and North Africa (Mena) region. The kingdom’s score surpasses both global and regional averages, classifying its economy as “moderately free.”

Bahrain excelled in several key metrics, scoring 99.9 in Tax Burden, 90 in Investment Freedom, and 88.7 in Monetary Freedom. The report highlights the Kingdom’s competitive tax rates and open investment environment as key strengths.

“The overall investment framework is streamlined, and the commercial law system is relatively straightforward. Despite the challenging global economic environment, the country continues to be a dynamic business hub. Its openness to global commerce is sustained by a competitive regulatory environment. Enhancing the foundations of economic freedom by further improving the rule of law and fiscal policy remains critical to ensuring the country’s ongoing evolution,” the report stated.

Key economic indicators for Bahrain include a zero per cent individual and corporate income tax rate, a tax burden of 2.8pc of GDP, and public debt of 123.3pc of GDP.

In the Mena region, the UAE leads at 23rd, followed by Qatar (27th) and Oman (58th). Singapore retained its position as the world’s freest economy.

The global average economic freedom score increased to 59.7, with the report indicating that the world economy remains “mostly unfree.”