Bahrain, UAE top Arab economic freedom index

Bahrain, Jordan and the UAE are the most economically free nations in the Arab world, according to a new Economic Freedom of the Arab World report.

Published by the Fraser Institute, an independent Canadian public policy think-tank, all three countries posted scores of 8 to top the regional list.

For Bahrain and the UAE, the score represented a slight decrease from their 8.1 scores that topped last year's report. Jordan, which ranked second last year, maintained its 8 score.

Among the other Gulf nations, Kuwait was ranked fourth (7.8) while Oman and Qatar were joint sixth (7.6) and Saudi Arabia eighth (7.4).

"Economic freedom is the key to increasing prosperity, creating jobs and reducing poverty. Economic freedom liberates people from government dependence and opens the door to democracy and other freedoms," said Fred McMahon and Dr Michael A Walker, research chair in Economic Freedom (Fraser Institute) and co-authors of the report.

Among the 18 nations in this year's report, Algeria, last year's last place country, again holds the dubious distinction of being the least economically free nation in the Arab world with a score of 5.8.

Mauritania and Iraq ranked 16th and 17th, with scores of 6.3 and 6.1 respectively. Due to the civil war in Syria, and the questionable data emanating from that country, it was not ranked in this year's report.

The Economic Freedom of the Arab World report compares and ranks Arab nations in five areas of economic freedom - size of government, including expenditures, taxes, and enterprises; commercial and economic law and security of property rights; access to sound money; freedom to trade internationally; and regulation of credit, labour, and business.

Economic freedom is based on the cornerstones of personal choice, voluntary exchange, freedom to compete, and security of private property.

Research shows that individuals living in countries with high levels of economic freedom enjoy higher levels of prosperity, greater individual freedoms and longer life spans.

A denial of economic freedom helped spark the Arab Spring.

The 2013 list in full:

1. Bahrain, Jordan and the UAE (8.0)

4. Kuwait (7.8)

5. Lebanon (7.7)

6. Oman and Qatar (7.6)

8. Saudi Arabia (7.4)

9. Yemen (7.3)

10. Tunisia (6.9)

11. Egypt (6.8)

12. Morocco (6.7)

13. Sudan (6.6)

14. Djibouti (6.5)

15. Comoros (6.4)

16. Mauritania (6.3)

17. Iraq (6.1)

18. Algeria (5.8