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UAE a ‘Most Active Economic Reformer’: WB

The country rose from 47^th to 33^rd among 183 economies worldwide in terms of the overall ease of doing business, thanks to having scrapped the minimum capital requirement for business start-ups and simplified registration procedures, the World Bank said in a report issued jointly with its investment arm, the International Financial Corporation. The report reviewed the period between June 2008 and May 2009.

The UAE has steadily improved its position since 2007 in terms of the ease of doing business. It moved nine positions — from 54^th in 2007 to 47^th — in 2008. In the Arab world, the UAE ranked fourth in 2008 for the ease of doing business.

Apart from the UAE, this year’s top 10 global reformers included Egypt from the Middle East and North Africa.

The UAE shortened the time it takes to deliver building permits by improving its online system for processing applications. It also made it easier for new businesses by simplifying the documents needed to register them, abolishing the minimum capital requirement, and removing the rule that proof of a deposit of capital be shown for registration, the report said.

“Abolishing the minimum capital requirement, as the UAE has done, is considered by the World Bank as one of the top five reform features in the costs of starting a business... In the past five years, 115 economies around the world have simplified business start-up through 193 reforms,” said Dr Nasser Saidi, Chief Economist of Dubai International Financial Centre.

The report noted that the Middle East and North Africa picked up the pace of business regulatory reform faster than any other region in a year of global financial uncertainty, with 17 of 19 economies in the region passing regulatory reforms to create opportunities for domestic entrepreneurs. The report is the seventh in an annual series.

Economies in the region are reforming at an impressive rate, and in sustained and comprehensive ways that highlight insights gained from other reformers, said Dahlia Khalifa, an author of the report.

With no major reform recorded during the period, Qatar was ranked 39^th. Kuwait, ranking 61^st, established a law enabling the restructuring of companies facing financial difficulty or insolvency, the report noted.

Bahrain, ranked 20^th, consolidated preliminary approvals for building permits in a one-stop shop and reduced the time needed to obtain a building permit.

Egypt, at 106^th, was among the world’s 10 most active reformers for the fourth time.

· issacjohn@khaleejtimes