UAE is 11th best nation to do business
JUMPS 10 PLACES IN RANKINGS AMONG 190 COUNTRIES IN EASE OF DOING BUSINESS
The UAE once again emerged a top reformer globally to be ranked at 11 position in the World Bank’s Ease of Doing Business 2019.
The country jumped 10 places from 21st position last year to lead the Arab world for the sixth consecutive year.
The UAE is fast closing in to become one among the top 10 in the ease of doing business ranking of 190 countries by the World Bank.
The World Bank report ranks economies on the basis of ease of doing business from 1–190. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.
In the Middle East and North Africa (Mena) region, the UAE topped in ease of doing business followed by Morocco at 60th position.
Overall, the UAE is far ahead of its GCC peers in global ranking and the ten topics on which the ranking is based. In the GCC, Bahrain came second with an overall ranking of 62 followed by Oman 78, Qatar 83, Saudi Arabia 92 and Kuwait 97.
The World Bank report made
a special mention of the UAE’s efforts in nurturing entrepreneurs and progress in introducing new reforms and entry into top 20 in the global ranking.
In the report the top 10 economies on the basis of ease of doing business are New Zealand, Singapore and Denmark, which retain their first, second and third spots, respectively, for a second consecutive year, followed by Hong Kong, Republic of Korea, Georgia, Norway, United States, United Kingdom and FYR Macedonia.
The vast majority of businesses in the UAE are optimistic on their outlook for the next year thanks to the improving macro-economic environment of the country and the region, according to a survey of business by HSBC.
The study Navigator: Now, next and how for business covered 8,500 companies in 34 markets around the world including the UAE.
Increasing oil prices, alongside the UAE’s recently announced stimulus packages, and the upcoming Expo 2020 have boosted business confidence, according to the study. Reflecting the optimism, 87 per cent of the UAE businesses are positive on their outlook for the year ahead, while a similar proportion (86 per centre) are positive about the global trading environment.
The study showed more than a third (34 per cent) of the UAE’s businesses are expanding into new markets to attract new customers and drive growth. “The report speaks a lot about the business confidence of UAE-based companies. The fact that many businesses are making capital expenditure is a clear sign they have a positive view of the future,” said Mike Davis, Head of Commercial Banking for HSBC UAE.
Economic growth in the UAE slowed to an eight-year low in 2017, against a backdrop of low oil prices and voluntary oil production cuts which came as part of the Opec-plus agreement to rebalance the global oil market. The economy, however, is expected to recover this year, supported by rising oil prices, an improving regional macroeconomic backdrop and higher public spending and investment ahead of Expo 2020.
Improving economic prospects in the MENA [Middle East and North Africa] region is also expected to benefit the UAE business as they plan to expand into some of the key regional economies such as Egypt and Saudi Arabia. Overall, 89 per cent of UAE firms are confident their company will succeed in the current trading environment, higher than the global average of 81 per cent.
The HSBC Navigator survey indicates that more than four out of five businesses (86 per cent) believe the outlook for international trade is positive, higher than the global average of 78 per cent. In the near term, about a third of the firms surveyed identify growing market share as a top priority, while an increasing focus on international markets was also commonly cited.
Asian markets
“While ties with India and China will continue to strengthen, we are also seeing an increasing number of businesses look to other parts of Asia, such as South East Asia, to expand into new markets,” said Davis.
While international expansion will continue to be a priority, the survey also highlights an increase in intra-regional trade — with Saudi Arabia, Egypt and Oman being top growth markets for the UAE.
Davis says the strategic location of the UAE and the trade hub status make it less susceptible to impact from global trade disputes. “The country is as much a hub for regional trade as it is for international,” he said.