Bahrain has been identified as one of the fastest growing economies in the Arab world by a leading research institution.

Dubai School of Government (DSG) published a report on the Persian Gulf country disclosing that low inflation, labor market regulations and reasonable fiscal policies are driving economic growth in the region.

However, the study did identify a weakness in the country's workforce, which is supported by migrant labor and is currently struggling to meet the demands placed upon it by significant expansion.

To address this issue DSG recommended that the government sustain efforts to streamline the country's labor market regulatory structure, which should contribute significantly to future national wealth.

Bahrain's economy is supported by the country's vast petroleum reserves which account for 70 per cent of government revenues and 60 per cent of export receipts, according to the Central Intelligence Agency.