Flip through the latest issue of Gulf Weekly.
Bahrain and Saudi Arabia both maintain their position as the only two nations from the Middle East and North Africa (Mena) to feature in the world's top 20 for ease of doing business.
For the fifth consecutive year, Saudi Arabia has been ranked as the best place to do business in the entire Middle East and the Arab World by the IFC and the World Bank.
Saudi Arabia rose to 13 from 15 on the ease of doing business by establishing a one-stop centre for business registration and a faster process for construction permits, says the World Bank in a report titled 'Doing Business 2010: Reforming through Difficult Times'.
This year's World Bank ranking demonstrates Saudi Arabia's continued progress towards its goal of becoming one of the top 10 most competitive countries in the world known as the '10 x 10 Programme'.
"Saudi Arabia has set a goal for the kingdom to become one of the top 10 most competitive countries in the world by 2010. Government ministries, private companies, investors, and the Saudi public have collaborated extensively to strive towards this vision," says Amr Al Dabbagh, governor of the Saudi Arabian General Investment Authority (Sagia).
Saudi Arabia's economic reforms, including its 2005 membership in the World Trade Organisation, have attracted an increasing amount of foreign investment and increased diversity to the economy. In 2006, Saudi Arabia was the largest recipient of direct foreign investment in the Arab world. Since 2004, the kingdom has advanced its overall Doing Business rankings, from 67th to 13th.
Bahrain was ranked among the top 25 global economies on a number of measures including dealing with construction permits (14th, first in Mena)), employing workers (13th, first in Mena), registering property (22nd) and paying taxes (13th).
Other aspects of the business environment that matter to firms and investors, such as an economy's quality of infrastructure and macroeconomic conditions, are not studied directly by the Doing Business report. However, a report published by the World Economic Forum (WEF) earlier this week ranked Bahrain's macroeconomic environment as the fifth most stable worldwide (up from 20 in 2008).
The WEF Global Competitiveness Report 2009-10 had also highlighted significant improvements in the kingdom's healthcare, education, training and labour market practices, together with its strong infrastructure which has been boosted by new developments such as the Bahrain Logistics Zone (BLZ) and Khalifa Bin Salman Port (KBSP).
Bahrain has taken a number of measures designed to preserve and grow the prosperity that the kingdom has nurtured for many years, including prudent financial policies, long term strategy of diversification and a commitment to the highest international standards.
Kamal Ahmed, chief operating officer of the Bahrain Economic Development Board (EDB), says: "Bahrain's consistently high ranking on the World Bank's ease of doing business index shows that our tried and tested regulatory environment is conducive to the operation of business. It is the result of prudent domestic measures taken to strengthen our long term prosperity and a commitment to creating an attractive business environment for international companies looking to access the growing markets of the Gulf - already approaching one trillion dollars."
Among other GCC countries, the UAE moved up to 33 from 47 on the ease of doing business and became one of the world's 10 most active reformers for the first time by eliminating the minimum capital requirement for business start-ups and simplifying registration.
The UAE shortened the time for delivering building permits by improving its online system for processing applications. Business start-up was eased by simplifying the documents needed for registration, abolishing the minimum capital requirement, and removing the requirement that proof of deposit of capital be shown for registration. Greater capacity at the container terminal, elimination of the terminal handling receipt as a required document, and an increase in trade finance products have improved trade processes.
Kuwait's ranking in ease of doing business fell from 52 to 61 this year.
However, Kuwait established a law enabling restructuring of companies facing financial difficulty or insolvency. Improvements to customs administration procedures and staff training have helped shorten the time required to clear goods for import and export. The country also introduced reforms in procedures to close a business and to ease trading across the borders.
Oman, which fell from 57 to 65 in ease of doing business ranking, simplified business start-up by introducing an online name registry and enabling payment with a prepaid card. A new tax law will modernise the tax regime and simplify procedures. The sultanate introduced reforms to procedures for starting business and paying taxes.
Qatar's rank also fell this year, from 37 to 39, even as no major reform has been noted in the country.
The report notes that governments in Mena are now reforming at a rate similar to those in Eastern Europe and Central Asia. Seventeen of 19 economies reformed in 2008-09.
"Economies in the Middle East and North Africa are reforming at an impressive rate, and in sustained and comprehensive ways that highlight insights gained from other reformers," says Dahlia Khalifa, an author of the report. "Governments are paying attention to the quality of business regulation to make their economies more competitive and encourage entrepreneurs. This is always important, but especially during these difficult times," he adds.
