Strong economic potential, good human resources and security, plus a high standard of living and a string of mega projects, have catapulted Bahrain’s capital city, Manama, to the top of fDi’s Middle East and North African Cities of the Future 2006/07 contest.
The judges were impressed both by the size and quality of the non-oil related projects, such as the Bahrain Financial Harbour development, Bahrain’s World Trade Centre, Bahrain Bay, Bahrain Investment Wharf, the Qatar causeway and the man-made island development projects.
Dubai ranked second, with other United Arab Emirates (UAE) cities Ras Al Khaimah and Abu Dhabi also in the top 10. Doha, Tunis and Sohar also scored well with the judges as lower-cost locations that have potential to become cities of the future.
fDi magazine’s judges noted that several large-scale developments across the region are now offering investors lower-cost alternatives to Dubai with equal or better investment incentives. Doha, Abu Dhabi, Aden and Tunis all scored well for incentives while Manama, Ras Al Khaimah and Tripoli scored well for recent foreign investment deals.
Multi-billion-dollar developments in cities like Manama, Dubai, Tunis, Abu Dhabi and Umm al-Qawain, plus some large projects in Sohar, Sharjah, Fujairah and Kuwait City, will change the investment landscape in these cities. The success of the projects will affect fDi’s City of the Future rankings for years to come.
Despite Dubai slipping off the top spot, the UAE’s overall economic strength is clear from fDi magazine’s first ranking of the region’s 50 special economic zones (see below).
Middle Eastern & North African Special Economic Zones of the Future 2006/07
Methodology During the summer, fDi magazine invited cities across North Africa and the Middle East to answer 39 questions in the eight broad categories listed right. A total of 16 cities were considered by fDi’s panel of judges, which scored each city according to the criteria listed (below). Judges awarded three points for the top city in each criterion, two points for second and one point for third. The winners are the cities that scored the most points in that category and the overall winner is the city that scored the most points across all eight categories.
(Please note that the tables show scores re-based to a scale of one to 100.)
Votes were cast by members of fDi’s editorial team and by independent guest judges.
THE JUDGING PANEL
 | Torbjörn Fredriksson Head of policy issues, Investment, Technology and Enterprise Development, UNCTAD |
 | Andrew Seidler, Director, taxation services, Tenon |
 | John E Xefos, Legal adviser in association with Baker & McKenzie |
 | Tel Rashid, Regional manager, Middle East & Africa, SpenglerFox Executive Search & HR Consultancy |
TOP 10 MENA CITIES
| Rank | City | Score |
| 1 | Manama, Bahrain | 100 |
| 2 | Dubai, UAE | 94 |
| 3 | Doha, Qatar | 92 |
| 4= | Tunis, Tunisia | 81 |
| 4= | Ras Al Khaimah, UAE | 81 |
| 6 | Abu Dhabi, UAE | 61 |
| 7 | Sohar, Oman | 59 |
| 8 | Aden, Yemen | 50 |
| 9 | Kuwait City, Kuwait | 41 |
| 10 | Tripoli, Libya | 38 |
JUDGING CRITERIA
Economic performance
Economic potential
GDP
GDP growth
GDP/capita
FDI/capita
Level of inward investment
FDI deals
Human resources
Universities
Number of 2006 graduates
Percentage of population with a degree
Level of adult literacy
Cost effectiveness
Out-of-town office rent
Centrally located office rent
Industrial rent
Secretarial salaries
Middle management salaries
Manual labour rates
Quality of life for expatriates
Housing
Healthcare
International schools
Natural and cultural heritage
Most secure
Reported incidents of crime per 1000 people (2005)
AON political risk rating
Government initiatives against organised crime and terrorism
Intellectual property protection
Transport and telecommunications
Transport
Mobile phone ownership (% of population)
Maximum broadband speed available
Telecommunication charges
Most business friendly
Number of days to register a company
Level of corporate taxation
Additional employment costs: for example, social security and other contributions
World Bank ‘difficulty of hiring’ rating
World Bank ‘difficulty of firing’ rating
Best FDI promotion strategy
Promotion channels and strategy
Targeted approach to attracting investment
Three biggest attractions for FDI incentives
Infrastructure and urban planning projects
Best Economic Performance
Best Human Resources
Best Transport Infrastructure & Telecommunications
Best Overall FDI Promotion
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