Doha, Qatar: Qatar has been ranked the third freest country out of 14 countries in the Middle East/North Africa region and 28th globally in a ranking of 184 countries, according to the 2024 edition of Index of Economic Freedom by The Heritage Foundation, a US think tank based in Washington.

The country’s rating has increased by 0.2 point from last year and its economic freedom score is higher than the world and regional averages.

The top four countries on the index are Singapore with a score of 83.5, Switzerland 83, Ireland 82.6 and Taiwan 80. Among the GCC countries, Qatar ranks second after United Arab Emirates, which has been ranked 22nd on the index with a score of 71.1.

Bahrain has been ranked 54th with a score of 63.4, and Oman 56th with 62.9. Saudi Arabia has been placed on the 69th spot with a score of 61.9 and Kuwait on 90th spot with a score of 58.5.

Qatar has been ranked higher than many advanced countries on the index. United Kingdom is ranked 30th with a score of 68.6, Japan is ranked 38th with a score of 67.5, Spain 55th with 63.3, and France 62nd with 62.5.

“Qatar’s economy is considered ‘moderately free’ according to the 2024 Index. It is trying to improve its entrepreneurial environment and broaden its economic base. The foundations of economic freedom are relatively solid. The regulatory system is flexible. The country’s open trade regime and growing status as a regional financial hub have encouraged more diversified private-sector growth,” the report said.

“Procedures for launching a business and completing licensing requirements have been made easier. The labour force consists primarily of expatriate workers, and immigration and employment rules are tightly managed.”

Qatar’s score on the index is 68.8, while the world average is 58.6 and the regional average 57.4. Qatar ranks highly on Property Rights with a score of 70.4, which is considered mostly free, and on Tax Burden its score is even higher with a score of 99.7 (considered totally free). Qatar’s score on Government Spending is 74 (considered mostly free), Fiscal Health 96.4 (free), Business Freedom 66.1 (moderately free), Monetary Freedom 72.2 (mostly free), Trade Freedom 81.6 (free). On Investment Freedom and Financial Freedom Qatar’s scores are 60 for each (considered moderately free).

“The overall rule of law is relatively well respected in Qatar. The country’s property rights score is above the world average and its government integrity score is above the world average,” the report said.

“The top individual income tax rate is 0 percent, and the top corporate tax rate is 0 percent. The tax burden equals 5.7 percent of the GDP. Three-year government spending and budget balance averages are, respectively, 29.4 percent and 6.4 percent of the GDP. Public debt amounts to 42.4 percent of the GDP,” it added.

The report said Qatar’s overall regulatory environment is relatively well institutionalised. The country’s business freedom score is above the world average and its monetary freedom score is above the world average.

“The trade-weighted average tariff rate is 4.2 percent. Openness to global commerce through trade and investment underpins Qatar’s competitiveness. Foreign investment in several sectors of the economy is capped. Banking remains stable and competitive. Growth in financial services has contributed to economic diversification,” the index said.

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