By IPS Correspondents
ABU DHABI, Apr 9 2003 (IPS)

The United Arab Emirates (UAE) ranked second in the Arab world in terms of economic freedom and 24th among 161 world countries, according to the 2003 Economic Freedom Index.

Under the Index, prepared by the Heritage Foundation and US ‘Wall Street Journal’, the UAE has surpassed many other countries in terms of monetary policies, level of government intervention, trade freedom, financial burdens on the government, wage and price indexes, ownership rights and the black market, according to a report in the ‘Khaleej Times’.

The Index data has shown that those levels of monetary policies, government financial burdens, government intervention and wage/price employed in the UAE have matched those of Hong Kong, the first on the Index, while the trade freedom the UAE enjoys is no less than that of the US, which ranked sixth in the world list.

The UAE also outmatched many world leading economies such as Italy, Spain, Norway, Japan, Poland, France and Mexico.

The figures given by the Foundation indicated that the UAE does not impose high customs duties or strict protective measures, while stable monetary policies, government financial burdens and government intervention have enabled the UAE to maintain an inflation rate of 2.02 percent during the period from 1992 to 2001, according to International Monetary Fund data.

The Heritage Foundation statistics rated as "medium" the level of capital and investment flows into the UAE as the country’s free trade zones have attracted considerable investments, offering 100 percent ownership.

In measuring the level of economic freedom, the Foundation relies on experimental studies and precise analysis of 10 factors, including trade policies, government financial burdens, government intervention, monetary policies, flow of foreign capital and investments, banks and financing procedures, wage/price indicators, ownership rights and the black market.

Excerpt: