Dubai: The UAE improved its global ranking by two to reach 33 in World Bank’s annual Doing Business ranking published on Thursday.

“Saudi Arabia remained the regional leader with a global ease of doing business ranking of 12. Qatar implemented its first reforms since 2005 and climbed to 36 on the global scorecard by improving its credit information system. The UAE further streamlined the requirements for business start-up, and improved its ranking to 33,” according to the report.

A new IFC and World Bank report finds that 11 out of 18 economies in the Middle East and North Africa improved business regulations for entrepreneurs in the past year, moving forward despite political and economic uncertainty in the region.

Doing Business 2012: Doing Business in a More Transparent World assesses regulations affecting domestic firms in 183 economies.

The report ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and enforcing contracts. The study’s methodology expanded this year to include indicators on getting electricity connections.

This year’s report data cover regulations measured from June 2010 through May 2011. The report rankings on ease of doing business have expanded to include indicators on getting electricity.

The global report shows that governments in 125 economies out of 183 measured implemented a total of 245 business regulatory reforms—13 per cent more reforms than in the previous year. In Sub-Saharan Africa, a record 36 out of 46 economies improved business regulations this year.

Over the past six years, 163 economies have made their regulatory environment more business-friendly. China, India, and the Russian Federation are among the 30 economies that improved the most over time.

Morocco improved its business regulation the most compared to other global economies, climbing 21 places to 94, by simplifying the construction permitting process, easing the administrative burden of tax compliance, and providing greater protections to minority shareholders. Since 2005, Morocco has implemented 15 business regulatory reforms.

The report finds that six of the region’s 18 business regulatory reforms measured made it easier to start a business. For example, Jordan reduced the minimum capital required to start a company, and Oman’s new one-stop shop for entrepreneurs cut business registration time from seven days to three.

New data show that the region can improve access to information on business regulations. “The region’s entrepreneurs can be empowered by stronger institutions and better access to information,” said Neil Gregory, Senior Manager, Global Indicators and Analysis, World Bank Group.

“In more than half of the region’s economies, an entrepreneur must meet with an official to get fee schedules or documentation requirements for many business procedures. E-government initiatives, the global trend, can help relieve bureaucratic burdens on entrepreneurs by offering transparent and sustainable solutions.”

Over the past six years 17 economies in the Middle East and North Africa have made their regulatory environment more business-friendly.

“Making business regulations more efficient and accessible increases opportunities for economic growth,” said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group.
“By helping businesses get started, the economies of the Middle East and North Africa can offer hope to entrepreneurs, who are the engine behind job creation.”

Ranks

Doing Business 2012 Fact Sheet in the Middle East and North Africa
(In alphabetical order)

Algeria
Algeria improved its credit information system through a new ordinance guaranteeing the right of borrowers to inspect their personal data.

Areas of business regulation reform: Getting credit (credit information)
Rank in Doing Business 2012: 148
Rank in Doing Business 2011: 143

Bahrain
Rank in Doing Business 2012: 38
Rank in Doing Business 2011: 33

Djibouti
Djibouti made trading across borders faster by developing a new terminal, the Doraleh Container Terminal. The new terminal is capable of serving larger vessels and added extra handling capacity. Djibouti made dealing with construction permits costlier by increasing the fees for inspections and the building permit and adding a new inspection in the preconstruction phase.

Areas of business regulation reform: Trading across borders, Dealing with construction permits (making it more difficult)
Rank in Doing Business 2012: 170
Rank in Doing Business 2011: 167

Egypt
Rank in Doing Business 2012: 110
Rank in Doing Business 2011: 108

Iran
Rank in Doing Business 2012: 144
Rank in Doing Business 2011: 140

Iraq
In Iraq starting a business became more expensive because of an increase in the cost to obtain a name reservation certificate and in the cost for lawyers to draft articles of association.

Areas of business regulation reform: Starting a business (making it more difficult)
Rank in Doing Business 2012: 164
Rank in Doing Business 2011: 159

Jordan
Jordan made trading across borders faster by introducing X-ray scanners to improve the risk management system for customs inspections and by electronically connecting customs and the port operator (Aqaba Container Terminal). Jordan also made starting a business easier. It reduced the minimum capital requirement from 1,000 Jordanian dinars to 1 dinar, of which only half must be deposited before company registration.

Areas of business regulation reform: Trading across borders, Starting a business
Rank in Doing Business 2012: 96
Rank in Doing Business 2011: 95

Kuwait
Rank in Doing Business 2012: 67 Rank in Doing Business 2011: 71

Lebanon
Made getting electricity less costly by reducing the application fee and security deposit for a new electricity connection. This was done as part of a major revision by the Ministry of Energy.

Areas of business regulation reform: Getting electricity
Rank in Doing Business 2012: 104
Rank in Doing Business 2011: 103

Morocco
Made dealing with construction permits easier. A one-stop shop became fully operational and widely used by the second half of 2010. In addition, Morocco eased the administrative burden of paying taxes for firms by enhancing electronic filing and payment of the corporate income tax and value added tax. The two electronic systems are now used by the majority of taxpayers. Morocco strengthened investor protections by allowing minority shareholders to obtain any non-confidential corporate document during trial.

Areas of business regulation reform: Dealing with construction permits, Paying taxes, Protecting investors
Rank in Doing Business 2012: 94
Rank in Doing Business 2011: 115

Oman
Improved its credit information system by launching the Bank Credit and Statistical Bureau System, which collects historical information on performing and nonperforming loans for both firms and individuals. In addition, Oman introduced online company registration and reduced the time to register a business Oman made it easier to pay taxes by enacting a new income tax law that redefined the scope of taxation.

Areas of business regulation reform: Getting credit (credit information), Starting a business, Paying taxes
Rank in Doing Business 2012: 49
Rank in Doing Business 2011: 53

Qatar
Improved its credit information system by starting to distribute historical data and eliminating the minimum threshold for loans included in the database. The Qatar Credit Bureau, which became operational in March 2011, collects and distributes historical credit information—both positive and negative. Qatar also made starting a business easier, by combining commercial registration and registration with the Chamber of Commerce and Industry at the one-stop shop. Qatar made dealing with construction permits more difficult by increasing the time and cost to process building permits.

Areas of business regulation reform: Getting credit (credit information), Starting a business, Dealing with construction permits (making it more difficult)
Rank in Doing Business 2012: 36
Rank in Doing Business 2011: 38

Saudi Arabia
Made starting a business easier by bringing together representatives from the Department of Zakat and Income Tax and the General Organisation of Social Insurance at the Unified Center to register new companies with their agencies.

Areas of business regulation reform: Starting a business
Rank in Doing Business 2012: 12
Rank in Doing Business 2011: 10

Syria
The Syrian Arab Republic made starting a business less costly by reducing the minimum capital requirement and by reducing the cost of publication for the registration notice.

Areas of business regulation reform: Starting a business
Rank in Doing Business 2012: 134
Rank in Doing Business 2011: 136

Tunisia
Rank in Doing Business 2012: 46
Rank in Doing Business 2011: 40

UAE
The United Arab Emirates improved its credit information system through a new law allowing the establishment of a federal credit bureau under the supervision of the central bank.

The new law also allows the free flow of credit information among credit providers (including utilities and retailers). In addition, the United Arab Emirates made starting a business easier by merging the requirements to file company documents with the Department for Economic Development, to obtain a trade license, and to register with the Dubai Chamber of Commerce and Industry.

Areas of business regulation reform: Getting credit (credit information), Starting a business
Rank in Doing Business 2012: 33
Rank in Doing Business 2011: 35

West Bank and Gaza
Rank in Doing Business 2012: 131
Rank in Doing Business 2011: 128

Yemen
The Republic of Yemen enacted a new tax law that reduced the general corporate tax rate from 35 percent to 20 percent and abolished all tax exemptions except those granted under the investment law for investment projects.

Areas of business regulation reform: Paying taxes
Rank in Doing Business 2012: 99
Rank in Doing Business 2011: 94