The 2017 version of Economic Freedom of the World hands out exceptionally low rankings for the Gulf countries, especially Kuwait, Oman and Saudi Arabia. The report was issued by the Frazer Institute of Canada, and ranks 159 economies.

The UAE is placed 37th and just ahead of Japan. But it is inconceivable that there is more appreciation for the principles of economic freedom in Armenia, Rwanda and Panama than in the UAE. Dubai on its own has won renown for serving as a hub for diverse types of economic activities.

The index ranks Qatar in the 45th position and on par with Mongolia, something not comprehendible. It grants Bahrain the 49th position and along with Qatar rank ahead of EU member states such as France and Italy as well as Asian giants Malaysia and Indonesia.

Kuwait and Oman are ranked 97th globally, after India and ahead of Russia. And Saudi Arabia is ranked 122nd, one position ahead of Yemen. To be sure, Yemeni nationals are noted for their business tendencies and engage in business activities even in the difficult circumstances that have engulfed the country.

The index relies on 42 variables, certainly a sizeable number. These are grouped into five broad areas, namely 1) size of the government in terms of expenditures, subsidies and investments; 2) legal system and property rights with regards to impartiality of the judicial system as well as enforcement of contracts; 3) sound money like inflationary threats and money supply growth; 4) freedom to trade internationally such as tariffs plus capital control; and 5) regulation of credit market, labour concerning hiring practices and minimum wage and business such as bureaucracy.

A major drawback relates to relying on secondary sources rather than carrying out primary research. This has a negative bearing on the results.

Make no mistake, the public sector plays a vital role in GCC economies, with governmental spending compromising a major component of GDP. At times and in some places, private sector establishments must compete with the public sector for banking facilities.

GCC governments partly depend on local banks to help cover financial deficits, a rising phenomenon since the plunge in oil prices since mid-2014. Yet, there is increasing reliance on securities issued in international financial markets denominated in foreign currencies.

Nevertheless, the rankings provided to GCC member states can be considered as unbalanced in light of the economic qualities of the six-nation grouping.

The study does not take into account the fact that foreign workers constitute the majority of the labour force in the six countries, something extraordinary by international standards. The expatriates do not face restrictions whatsoever with regards to repatriation of funds.

In fact, Bahrain stands out for regularly enhancing laws concerning foreign workers. Migrant workers have the right to change sponsors under certain conditions. These include a failure by the sponsor to provide salaries for several months in a row.

Another amended law gives expatriates overstaying on their cancelled visas to apply for a correction of their status and whereby they could become their own sponsors. However, this requires prepayment of all necessary fees.

Unquestionably, GCC countries deserve more appreciation for the openness of their economies.

The writer is a Member Parliament in Bahrain