Big jump for Bahrain in emerging markets index

MANAMA: Bahrain has jumped five spots in this year’s Agility Emerging Markets Logistics Index, taking 23rd place overall – the third-largest leap of all the 50 emerging markets ranked in the report.

The kingdom’s rise is due to an overall reduction in trade barriers combined with a more stable environment in comparison to recent years, said a statement.

Six of the 10 emerging markets with the best conditions for business are Gulf states and include in order of ranking: The UAE (1), Qatar (2), Oman (3), Bahrain (4), Saudi Arabia (7) and Kuwait (10).

To score business conditions, the index looked at the strength of the service sector, urbanisation, security, foreign investment, wealth distribution and the levels of bureaucracy and regulation confronted by businesses.

The index, now in its eighth year, offers an annual snapshot of industry sentiment and ranks the world’s leading emerging markets by size, business conditions, and transport infrastructure and connections. It includes a survey of more than 800 global logistics executives.

Robust growth and long-anticipated tax and economic reform pushed India to second place in the index and impressed logistics executives responding to the survey.

Despite upbeat views of India, industry professionals sounded notes of caution about the broad outlook for emerging markets.

In the survey, supply chain executives identified the direction of China’s economy as the factor most likely to drive global economic and trade growth this year, with 76 per cent of respondents saying China’s economy was slowing.

Nearly 69pc expressed concern that the UK’s Brexit vote and the failure of global and regional trade initiatives signal a threat to trade.

A sizeable minority – 43pc – said the International Monetary Fund was too optimistic in forecasting 4.6pc growth for emerging markets in the coming year.

Outside of the Gulf countries and Turkey, Egypt (20) and Morocco (22) were the Mena countries ranking highest in the index.

Logistics executives picked Syria, Libya and Iraq, all in the grip of violence and war, as the three emerging markets countries with the least logistics potential.

Transport Intelligence (Ti), an analysis and research firm for the logistics industry, compiled the index.

“Uncertainty and volatility have characterised many emerging markets last year,” said Ti chief executive John Manners-Bell.

“This has been compounded by the political environment in Europe and the US, which will have direct consequences on trade with Latin America, Asia and Africa.

“However there have been many positives too – for example, the strong performance of India.

More than ever, the index identifies and contrasts those markets which will prosper from the most vulnerable and poorest performing,” he added.

Source: https://www.gdnonline.com/Details/156182/Big-jump-for-Bahrain-in-emerging-markets-index