(MENAFN- Khaleej Times) Doing business in the UAE has become a lot easier over the past one year with the country, on the back of a string of pro-business reforms, improving its global ranking to 21 from 26 in the World Bank's "Ease of Doing Business" ranking.
New Zealand took the top place for the second straight year, followed by Singapore, Denmark, South Korea and Hong Kong. Macedonia dropped out of the top 10, while Georgia jumped into the ninth spot. Among the top 20 ranked economies, the former Soviet republic has enacted the most business-friendly reforms since the World Bank started tracking them in 2003, according to the report.
A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. In starting business, dealing with construction permits registering property, getting credit, trading across borders, and paying taxes, the UAE scored impressively.
Five other GCC countries also are in the global 100 ranking. Bahrain was ranked 66, Oman 71, Qatar 83, Saudi Arabia 92 and Kuwait 96 in the World Bank list.
The economies of the Middle East and North Africa implemented 29 reforms in the past year. The region has implemented 292 reforms in the past 15 years. As a result, it takes 17 days on average to start a business in the region, compared to 43 days in 2003. However, the region lags on gender-related issues, with 14 economies imposing additional barriers for women entrepreneurs, the World Bank said.
The report ranks countries based on 11 indicators such as the ability to start a business, dealing with construction permits, accessing electricity, obtaining credit, trading across borders and paying taxes.
Developing economies such as Nigeria, India, Thailand and El Salvador have made the largest strides in improving their business climates.
"It is particularly gratifying to see that many of the reforms are being carried out in economies and sectors where they are most needed," Rita Ramalho, acting head of the bank's Global Indicators Group, said.
Governments in 119 economies carried out 264 business reforms in the past year to create jobs, attract investment and become more competitive, says the report: "Doing Business 2018: Reforming to Create Jobs."
Marking its 15th anniversary, the report notes that 3,188 business reforms have been carried out since it began monitoring the ease of doing business for domestic small and medium enterprises around the world.
"Job creation is one of the transformational gains that countries and communities can achieve when the private sector is allowed to flourish. Fair, efficient and transparent rules, which Doing Business promotes, improve governance and tackle corruption," said World Bank chief executive officer Kristalina Georgieva.
War-torn Somalia remained at the bottom of the list while the island nation of Mauritius ranked 25th, higher than Thailand, Poland and Spain - showing broad variety of experiences in Sub-Saharan Africa.India ranked 100th, up more than 30 places, and was among the top ten most-improved, having implemented eight reforms between 2016 and 2017. India also had the highest score in South Asia for protecting minority investors.
The US moved up two places to sixth, ahead of Britain but behind Hong Kong and South Korea.
Mainland China, the world's second-largest economy, held steady at 78th and scored a low 172nd in for dealing with construction permits, even though the country's recent building boom helped propel economic growth.
According to the World Bank, Beijing and Shanghai perform below international best-practices, with 23 steps and 249 days required to obtain a permit and related costs amounting to 7.8 per cent of the cost of actual construction.
Russia advanced to 35th out of 190 countries in the World Bank's 2018 business rankings, from 40th in 2017.
The US moved up two positions to sixth in the development lender's rankings of 190 countries based on ease of doing business, while the UK retained its spot in seventh place.
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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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