Economic Freedom in Bahrain continues to rise, placing the kingdom first in the Gulf and second in the Arab world. The Ministry of Finance and National Economy reported this achievement in its third-quarter 2025 economic report. This ranking highlights Bahrain’s growing reputation as a competitive and investor-friendly economy.
The report cited the Fraser Institute’s 2025 Economic Freedom of the World Index, which assesses 165 countries using five measures: regulation, sound money, international trade freedom, government size, and legal system efficiency. Bahrain ranked first in the Arab world for regulation, while GCC nations led in sound money and government size.
According to the ministry, these results reflect Bahrain’s strong economic and financial frameworks. Moreover, the rankings emphasize the kingdom’s flexible business environment and competitive policies. Efficient economic systems helped Bahrain maintain a high position among freer economies worldwide. The report also stressed that Bahrain’s reforms meet international standards of economic freedom.
In a related assessment, Bahrain performed strongly in the World Bank’s B-READY report, which evaluates 101 countries on business readiness. This report measures regulatory frameworks, public services, and operational efficiency across ten key areas. Bahrain led Arab nations in four fields: utilities, labour, dispute resolution, and corporate insolvency.
The ministry highlighted that Bahrain ranked third globally in dispute resolution, scoring 74.05 out of 100. This score reflects high standards in handling legal and commercial conflicts. The report also noted the kingdom’s efficiency in regulatory frameworks and the ease of complying with laws as major contributors to economic competitiveness.
Public services also played a key role in Bahrain’s success. These services improve investment activity, streamline business operations, and increase transparency. Analysts said these strengths reinforce Bahrain’s position as a regional hub for trade and investment.
Looking ahead, Bahrain aims to strengthen its global standing. Continued reforms, better regulations, and enhanced public services are expected to further boost Economic Freedom. These steps are likely to increase investor confidence and support sustainable economic growth.
