The State of Economic Freedom in the Middle East & Central Asia in 2023
Introduction
Economic freedom, a cornerstone of growth and prosperity, provides a valuable lens to assess the latitude granted to individuals and enterprises in shaping their economic destinies. In regions plagued by limited economic freedom, governments wield their power to constrict personal and corporate liberties, constricting the realm of choices available. This encumbrance inevitably dampens the prospects for flourishing and inhibits the flow of abundance.
Economic Freedom in the Middle East 2023
The map below uses the annual?Index of Economic Freedom?from the Heritage Foundation to showcase the level of economic freedom in the middle east on a scale of 0-100, looking at factors like property rights, tax burdens, labour freedom, etc.
The ranking categorizing scores of 80+ as free economies, 70-79.9 as mostly free, 60-69.9 as moderately free, 50-59.9 as mostly unfree, and 0-49.9 as repressed.
Unsurprisingly, the United Arab Emirates (UAE) stands tall as the pacesetter in the Middle East when it comes to economic freedom. The UAE has orchestrated a symphony of strategies, encompassing tax exemptions, duty-free enclaves, simplified business registration protocols, and adaptable regulatory structures, all meticulously crafted to cultivate a vibrant entrepreneurial ecosystem and attract substantial foreign direct investment. Notably, both individuals and corporations revel in the absence of tax burdens, as the highest tax rates rest comfortably at minimal.
Measuring Economic Freedom
This ranking uses four broad categories with three key indicators each, both qualitative and quantitative, to measure economic freedom.
The Above data is taken from the?Index of Economic Freedom?from the Heritage Foundation and Visual Capitalist Report