For 2023, Kuwait Ranks 108th On The Index Of Economic Freedom

Kuwait ranked 108 out of 176 countries in the American Heritage Economic Freedom Index for 2023, down seven positions from last year, reports Al-Qabas daily. The index ranked Kuwait this year among the most economically unfree countries. Its ranking in the previous report was moderate economically free. Kuwait ranked last among the Gulf countries. The UAE, Qatar and Bahrain came first, second and third respectively in the region, followed by Oman in fourth place and Saudi Arabia in fifth.

Freedom of the economy
The report indicates that Kuwait ranked 108 out of 176 countries in terms of economic freedom in 2023, with 56.7 points out of 100. Kuwait’s score decreased by 1.6 points this year. Kuwait ranked ninth out of the 14 countries in the Middle East and North Africa region, and its overall score results are below the global and regional average. Kuwait's institutional weaknesses continue to limit comprehensive economic freedom according to the "Heritage Index" report. The judicial system lacks the ability to effectively defend property rights. Despite some progress, corruption still undermines development prospects.

In Kuwait, efforts have been made to enhance the efficiency of the regulatory framework for business, but progress has been slow. The rule of law is generally weak in Kuwait, as the degree of property rights in the country is lower than the global average, as well as with regard to the degree of judicial effectiveness and the degree of integrity of the government. On the other hand, the Kuwaiti government took steps to improve its regulatory frameworks for business, but that progress in this regard was gradual and unstable. Business regulations in Kuwait lack flexibility, as the government provides many subsidies and controls prices through state-owned facilities and companies.

Non-tariff barriers increase the costs of trade. Although the Kuwaiti economy is generally open to foreign investment, some economic sectors in the country are still restricted, and the Kuwaiti banking sector still enjoys good capital. Globally, Singapore, Switzerland and Ireland topped the Index of Economic Freedom for the year 2023, followed by Taiwan, New Zealand and Estonia in the fourth, fifth and sixth positions respectively.

They are followed by Luxembourg, the Netherlands, and Denmark in the seventh, eighth, and ninth positions, and by Sweden, Finland, and Norway in the 10th, 11th, and 12th positions, respectively. In terms of the least economically free countries in 2023, North Korea ranked 176, followed by Cuba (175), Venezuela (174), Sudan (173), Zimbabwe (172), Eritrea (171), Burundi (170), Iran (169), and Algeria (168).

 

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