Date : 13/08/2009
Author: anu abraham
The World Bank Group has published their annual "Doing Business" report that ranks 181 countries on how friendly their regulatory climate is to entrepreneurs. The report provides a quantitative measure of regulations for starting a business as they apply to domestic small and medium-size enterprises. Economies are ranked on their ease of doing business. The ease of doing business index means the regulatory environment is conducive to the operation of business.
(Source : http://www.pnmsoft.com/best_countries_for_entrepreneurs.aspx)
To make the data comparable across economies, detailed assumptions about the type of business are used. Among these assumptions are the following: the business is a limited liability company conducting general commercial activities in the largest business city; it is 100% domestically owned, with a start-up capital of 10 times income per capita, a turnover of at least 100 times income per capita and between 10 and 50 employees; and it does not qualify for any special benefits, nor does it own real estate.
According to the Doing Business report, covering the period June 2007 through May 2008 , the top ten economies are :
The aggregate rankings of the MENA region are :
(Source : http://www.doingbusiness.org/Documents/RegionalReports/DB09_Middle_East_North_Africa.pdf)
The chart below showsthe recalculated scores of the ranking criteria’s for theMENA region :
(Source : http://www.doingbusiness.org/economyrankings/?regionid=4)
Interestingly Saudi Arabia scores higher than Kuwait on the parameters of Starting a business, Registering property and Trading across borders. Also, Kuwait scores higher than UAE on parameters of Protecting Investors, Enforcing Contracts and Closing a business.
At an overall level GCC states scored poorly on enforcing contracts and starting a business reflecting the need to enhance legislation and improve governance related parameters.
Though the survey is based on a combination of qualitative and quantitative factors, the survey raises interesting pointers for the GCC governments.
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