Bahrain is one of the fastest growing Arab economies due to low inflation and “sensible fiscal policies,” while Oman is facing “significant long-term challenges,” according to the latest research published on Sunday.
Country profiles compiled by the Cairo-based Economic Research Forum found that Bahrain’s trade agreements with international partners had helped increase development.
>But, internal labour pressures and rigid market regulations have continued to inhibit the kingdom’s economic expansion. The report said efforts to reform labour laws will alleviate pressures on the market.
Meanwhile, Oman’s faced significant challenges with regard to “the sustainability of growth, volatility, employment creation and governance,” the report said.
Oman’s dependence on oil production is now threatened due to declining reserves and escalating production costs. But, “high oil prices have increased the fiscal space for Omani policy makers, and the government is taking advantage of this window of opportunity,” the report said.
Dr Tarik Yousef, dean of the Dubai School of Government, and Paul Dyer, research associate, both assisted in compiling the country reports