1. Arab World Economies
Arab World Economic Freedom
IRF
November 2010

2. Kerosene Lamp

3. Studying under the street lights

4. Night Satellite photo of the World

5. Pakistan

6. North Korea

7. Canada

8. Inherited Prosperity
• Prosperity is derived from selling inherited natural
resources or real estate.
• Prosperity is limited by the amount of natural resources
available, and ultimately temporary.
• Focus gravitates towards the distribution of wealth as
interest groups seek a bigger share.
• Government is the central actor in the economy as the
owner and distributor of wealth.

9. Created Prosperity
• Prosperity is derived from creating valuable products and
services
• Prosperity is created by firms
• Prosperity is unlimited, based only by the innovativeness and
productivity of companies
• Creating the conditions for productivity and innovation are
the central policy question
• Companies are the central actors in the economy
• The government’s role is to create the enabling conditions

10.  Consumer Spending
 Government Spending
 Export Development
Create demand and access to disposal
income

11.  Global recession will not affect the Arab
World as predicted.
 Resource rich countries maintained high
government spending.
 Labor abundant countries will have delay
effect due to low remittance, reduced
FDI and reduced tourists inflow.
 Countries less globally integrated will not
to be severely affected.

13. 1 Size of the government
 Gov. influence in economic or business decisions
(incentives/subsidies, legislation, ownership and
government expenditure) .
 Size of the government as net producer and
consumer ( percentage of GDP).
 Number, scale and types of government.
Enterprises.
 Taxation.

14. Size of Government
Source: IRF - 2010
Country Score
Lebanon 8.4
Comoros 8.3
W. Bank Gaza 7.2
Egypt 7.1
Oman 5.3
Djibouti 5.3
KSA 5.0
Algeria 4.6

15. 2 - Legal Structure
 Impartiality of judiciary
 Independence
 Access to justice
 Efficiency and speed of legal system
 Protection of property rights
 Enforcement of Contracts

16. 2- Legal Structure
Source: IRF - 2010
Country Score
KSA 8.2
Oman 8.0
Kuwait 7.8
Mauritania 7.7
Algeria 5.8
Syria 5.7
Iraq 4.2
Somalia 1.3

17. 3 - Access to Sound Money
 Power, responsibility and independence of
the Central Bank.
 Inflation rate.
 Access to foreign currencies.
 Local/foreign currency controls.

18. 3- Access to Sound Money
Source: IRF - 2010
Country Score
Bahrain 9.1
Kuwait 8.9
Lebanon 8.8
KSA 8.6
Mauritania 5.8
Sudan 5.6
Iraq 5.4
Libya 5.2

19. 4 – Freedom to exchange with foreigners
 Taxes on international trade.
 Regulatory trade barriers.
 International capital market controls.
 Access to foreign capital
 Restrictions on foreign capital transactions

20. 4- Freedom to Exchange with foreigners
Source: IRF - 2010
Country Score
Yemen 8.7
Bahrain 8.4
Qatar 8.2
Jordan 8
Morocco 5.3
Algeria 5.1
Syria 5.1
Tunisia 4.9

21. 5 - Regulation of credit,labour & business
 Credit market regulations (banks, extension of
credit, interest rate controls)
 Labour market regulations (localization of labour,
impact of minimum wage, hiring and firing
practices)
 Business regulations (price controls, barriers to
enter new business, effect of bureaucracy on
business efficiency/productivity

22. Country Score
Bahrain 8.7
KSA 8.1
Lebanon 8
Oman 7.9
Egypt 5.9
Sudan 5.9
Mauritania 5.8
Syria 5.5
5 - Regulations of Credit, Labor, & business
Source: IRF - 2010

23. Summary Ratings
Source: IRF - 2010
Country Score
Bahrain 8
Kuwait 7.8
Lebanon 7.6
Oman 7.5
Mauritania 6.3
Tunisia 6.3
Syria 5.7
Algeria 5.5

24. Thank You