Bahrain ‘most open economy’ in GCC

Tuesday, 26 July 2011 00:01 - - {{hitsCtrl.values.hits}}

Bahrain’s comparative lack of hydrocarbons has lead to its status as one of GCC’s most ‘financially forward-thinking’ countries, according to a new report.

In KPMG’s ‘Succeeding in a Changing World’ survey of 1,500 executives across 22 European, Middle Eastern and African countries, Bahrain earned the reputation of ‘regional trailblazer’ with the ‘GCC’s most open economy.’

‘Having long since realized that it cannot rely on oil and gas exports to ensure its continuing prosperity, the kingdom has strived over the past several decades to diversify its economy away from the extraction of natural resources and towards a more sustainable model of development based on manufacturing and the provision of services, especially finance,’ the report said.

The building blocks of Bahrain’s economy remain intact despite recent unrest, and investors are optimistic about the country’s future, according to the report.

‘Going forward, government and regional investments are expected to have an immediate impact on Bahrain’s economic recovery,’ it said.

The report added that Bahrain’s expected revision of the national economic strategy will be a vital measure to ensure long-term prosperity. To this end, organizations are reviewing their internal structure to enhance performance efficiency and are concentrating on business performance management.

Compared to other countries, Bahraini executives place a higher weight on mitigating risk throughout organizations at 42 per cent versus the average 30 per cent.

KPMG Fakhro and Bahrain’s head of advisory Narayanan Ramachandran said this demonstrates Bahrain’s ‘increasing emphasis on corporate governance and financial risk management.’