Bahrain attains another e-feat

Manama 

Bahrain’s Internet economy is ranked among the 30 best in the world, according to a new report by The Boston Consulting Group (BCG), a  management consulting firm. 

The research also found that, globally, the difference between countries with large digital economies and those with low economic activity amounts to about 2.5 per cent of GDP – a material figure for any nation.

The new study, titled Which Wheels to Grease? Reducing Friction in the Internet Economy, serves as a follow-up to BCG’s previous report The Connected World: Greasing the Wheels of the Internet Economy. The 2014 analysis identified 55 indicators of e-friction that inhibit online activity by consumers, businesses, and governments. The BCG e-Friction Index – introduced in last year’s study – then used those indicators to rank 65 economies according to four types of e-friction: infrastructure-related frictions that limit basic access; industry and individual frictions that affect the ability of companies and consumers to engage in online transactions; and information frictions that involve availability of, and access to, online content. 

The 2015 BCG e-Friction Index highlights that Bahrain has one of the world’s most advanced and productive Internet economies. On a global level, Bahrain is ranked 27th – ahead of a number of strong emerging economies such as Brazil, China, India, South Africa, and Turkey (Exhibit 1). On a regional level, Bahrain is ranked third after Qatar and the UAE.

 “In Bahrain, consumers and businesses face few restrictions or constraints on digital activity – what we refer to as ‘e-friction,” said Joerg Hildebrandt, Partner and Managing Director at BCG Middle East. 

“The nations that are still lagging behind, however, both in the GCC and in the rest of the world, need to imminently address their sources of e-friction; after all, doing so could have a strong impact on national competitiveness as well as on social and economic development.”

 He also added, “Based on our study, the broad causes of e-friction include wealth, population density, the urban-rural population mix, literacy, and English-language skills. And, while some of these can be influenced by policy initiatives, others require more creative approaches.”