Worryingly, all of the Gulf have seen their rankings plummet in a key report focusing on the ease of doing business. This was on display in the 13th edition of ‘Doing Business 2016’ published by the World Bank.
The UAE retained its position as the best performer among Arab countries and the broader region. Yet, the country experienced a fall in its ranking by nine positions to 31st in the world in the 2016 index.
On a positive note, the report commends the UAE for easing the obtaining of construction permits by streamlining Civil Defence approvals. Certainly, enhanced processes are of value to real estate developers in terms of creating cost efficiency.
Bahrain overtook Qatar as the second best regional performer by placing 65th, though a distant second to the UAE. The other Gulf countries have a long way to go to catch up with the UAE with regards to ease of doing business.
Bahrain has been focusing on encouraging entrepreneurs, made possible partly via the government developing model business incubators, notably in manufacturing. Happily, the push towards entrepreneurship should prove effective in dealing with the adverse effects of the drop of oil prices and public spending.
Qatar lost 18 notches to arrive at the 68th position. But the report’s authors are pleased with the authorities for reducing the time required for handling transactions at the port.
Oman lost out on four positions, and the sultanate is credited for transferring cargo operations for exports and imports from the busy Sultan Qaboos Port to Sohar Port. Sohar is a key industrial area with relatively easy access to Dubai.
Saudi Arabia lost 33 positions to be 82nd, the biggest drop among GCC economies in the index.
Countries all over are taking steps to ease procedures to entice commercial activities for the benefit of local economies. In such a competitive environment, GCC countries need to enhance business practices by making them friendlier.
For instance, there is a need to streamline laws governing inward foreign investments by making them easier. Arguably, some GCC countries like Kuwait continue to place stringent restrictions on foreign ownership in the energy sector. Yet, international firms are the ones having the necessary know-how, expertise and technology to explore new energy sources.
Kuwait’s constitution bars foreign ownership in the strategic energy sector. Ranked at the 101st spot, Kuwait is the worst in the Gulf in the ease of doing business survey.
Clearly, some countries have succeeded in enhancing their standings at the expense of Gulf states by improving regulations and assuming business-friendly initiatives. The economies are ranked on 10 variables deemed essential for enticing businesses, and range from starting a business to dealings on construction permits, as well as registering property to getting credit and protecting investors.
The writer is a Member of Parliament in Bahrain.
