Bahrain ranked fourth most competitive Arabic economy according to The Global Competitiveness Report 2019, published Wednesday by the World Economic Forum.
Bahrain's performance has improved by a total of five points over the past year, ranking it 45th globally.
The Kingdom's performance witnessed an improvement in 65 out of 103 indicators calculated in the report, allowing it to compete with some of the world's largest and most competitive economies.
"The Global Competitiveness Index 4.0 provides a compass for thriving in the new economy where innovation becomes the key factor of competitiveness. The report shows that those countries which integrate into their economic policies an emphasis on infrastructure, skills, research and development and support those left behind are more successful compared to those that focus only on traditional factors of growth," said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.
The Report documents emerging areas of promising policies, reforms and incentives to build more sustainable and inclusive economies. To manage the transition to a greener economy, the Report recommends four key areas of action: engage in openness and international collaboration, update carbon taxes and subsidies, create incentives for R&D, and implement green public procurement. To foster shared prosperity, the Report recommends four additional areas of action: increase equality of opportunity, foster fair competition, update tax systems and their composition as well as social protection measures, and foster competitiveness-enhancing investments.
"What is of greatest concern today is the reduced ability of governments and central banks to use monetary policy to stimulate economic growth. This makes it all the more important that competitiveness-enhancing polices are adopted that are able to boost productivity, encourage social mobility and reduce income inequality," said Saadia Zahidi, Head of the Centre for the New Economy and Society at the World Economic Forum.