The history of the Middle East dates back to thousands of years, and throughout history the region has been a major center of world affairs and business. Today, the Middle East remains a strategically, economically, politically, culturally, and religiously sensitive region for world business.

However, doing business is becoming easier in most parts of the Arab World, according to "Doing Business 2009 in the Arab World," a report that examines the business regulatory environment of 20 Arab economies. The report, based on the data from the global Doing Business survey by the World Bank and International Financial Corporation (IFC), compares the ease of operating a private business, benchmarks regulations, and identifies reforms and global good practices.

Thirteen Arab economies introduced 29 reforms between June 2007 and June 2008 in the areas measured by Doing Business. It finds that over the past five years, the most popular Doing Business reform in the Arab World has been in business start-ups, with 10 reforming economies. Getting credit information was the second-most-popular reform, followed by improvement in trade across borders. Multiple reforms also took place in protecting investors, dealing with licenses, registry property, paying taxes, and closing a business.

Dahlia Khalifa, a coauthor of the report, said, "Good rules that are efficient, transparent, and accessible make it easier, especially for small and medium enterprises, to do business in a fast-changing world. Otherwise, businesses can be trapped in the unregulated, informal economy, where they have less access to finance, hire fewer workers, and workers lack the protection of labor law. Arab economies recognize this and are taking action to reform their business regulatory environments."

Initial results show that reforms lead to change on the ground. Six months after Egypt reformed its property registry, title registrations increased and related revenue rose by 39 percent. Commercial registrations in Oman increased by 93 percent over the past year after Oman implemented a one-stop shop for business start-ups. In Saudi Arabia, reducing minimum capital requirements led to an 81 percent increase in new company registrations.

Dr Hazem El Beblawi, advisor to the Arab Monetary Fund, said: "This new report offers Arab economies examples of reform and good practices from the Arab world and other economies. Regulatory reforms make it easier for local entrepreneurs to do business, and overall enhance business environments and regional competitiveness."

The report is co-sponsored by the Arab Monetary Fund, World Bank, and IFC.

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Sources:
U.S. Commercial Services
Doing Business