Saudi Arabia sees most improvement in ease of doing business: World Bank

Arab News
October 25, 2019

Riyadh, Oct 25: Saudi Arabia is the most improved country in the world for doing business, the World Bank said on Thursday. The Kingdom leapt 30 places in the annual survey of business efficiency in 190 countries, and was the top reforming country — the highest ranking since the bank launched its “Doing Business” survey 20 years ago.

The country now ranks 62nd in the world, ahead of many larger economies such as India, and it has introduced more reforms than China or Pakistan.

“Today, Saudi Arabia is celebrating,” Commerce and Investment Minister Majid Al-Qasabi said at the launch of the report in Riyadh. “And it is the outcome of tremendous efforts since the launch of Vision 2030.”

Simeon Djankov, the World Bank executive responsible for the report, said Saudi reformers had shown that “things that seemed impossible can be possible. Now the job remains to convince the rest of the world so they understand Saudi Arabia is open for business.”

“Something clearly is happening in the Gulf which has not happened before,” Djankov said.

The report ranked countries on their business climates, and found that the most improved countries over the previous year were in the Middle East – including Saudi Arabia, Jordan, Bahrain, and Kuwait.

“Achieving Aramco IPO is the single most important thing Saudi Arabia can do to improve its global business image," Djankov told Arab News. The time taken to start a business had been dramatically reduced and new online systems had speeded up export-import commerce, Djankov said. He also praised efforts to include more women in the workforce.

“A nation prospers when all its citizens benefit,” he said. “There are many areas in Saudi Arabia where women are on a par with men now, and the world should know about it.Thursday’s event also marked the inauguration of the National Competitiveness Centre, Tayseer, which will drive the Kingdom’s progress in business reform. Assistant Commerce Minister Iman Al-Mutairi, CEO of National Competitive Center (NCC), said the World Bank report was a “quantum leap” for the business community.

Saudi Arabia launched reforms in eight areas monitored by the World Bank, more than any other country. The report, based on interviews with 50,000 global private-sector executives, found the Kingdom had made the greatest progress in the area of business start-up. “It now costs only 5.4 percent of income per capita for an entrepreneur to start a business, which is lower than the Middle East and North Africa regional average of 16.7 per cent,” it said.

There has also been significant improvement in areas such as registry property and construction permits, and in the ease of obtaining electricity connections.

“Saudi Arabia’s impressive reforms … show its commitment to fulfilling a main pillar of its Vision 2030: A thriving economy,” said Issam Abousleiman, the World Bank’s GCC regional director.

Djankov said the Kingdom must now press on with reforms. “Why not repeat this performance next year, and the year after? The aim should be to be a better place to do business than Germany, France or the UK.” The World Bank said Saudi Arabia’s reforms included establishing a one-stop-shop for business registration, introducing a secured transactions law and an insolvency law, improving protections for minority investors, and measures to bring more women into the workforce.

“Everybody here in this region figured out we better diversify the economy in some direction and I think this is actually why the reforms are happening now,” he added.

The report coincides with the scheduled appearance of World Bank President David Malpass at a Saudi investment conference next week. The US Treasury Secretary Steven Mnuchin and presidential adviser Jared Kushner would also attend the conference.

“Removing barriers facing entrepreneurs generates better jobs, more tax revenues, and higher incomes, all of which are necessary to reduce poverty and raise living standards,” Malpass said in a statement.

The top 10 rankings in the survey were largely unchanged from a year ago, with New Zealand holding its top spot, followed by Singapore, Hong Kong, Denmark, South Korea, the United States, Georgia, Britain, Norway and Sweden.

Latin American countries lagged in the rankings, with Argentina falling seven places to 126th, and Mexico, the region’s highest-ranking economy, falling six spots to 60th.

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Agencies
June 9,2020

Dubai, Jun 9: Dubai's Emirates airline has begun laying off employees to reduce cost and save cash as the carrier looks to rightsize its workforce.

"We at Emirates have been doing everything possible to retain the talented people that make up our workforce for as long as we can. However, given the significant impact that the pandemic has had on our business, we simply cannot sustain excess resources and have to rightsize our workforce in line with our reduced operations. After reviewing all scenarios and options, we deeply regret that we have to let some of our people go," the spokesperson said in the statement.

Citing sources, Reuters and Bloomberg earlier reported that a majority of those being made redundant are cabin crew workers as well as a minority of its engineers and pilots, including those flew the Airbus A380.

"This was a very difficult decision and not one that we took lightly. The company is doing everything possible to protect the workforce wherever we can. Where we are forced to take tough decisions we will treat people with fairness and respect. We will work with impacted employees to provide them with all possible support," said the statement.

The spokesperson, however, didn't disclose how many employees are being made redundant in this latest round of rightsizing the workforce.

Emirates on Sunday confirmed that it extended the period of reduced pay for its staff for another three months till September. It had previously reduced basic wages by 25 to 50 per cent for three months from April, with junior employees exempted.

The airline had employed around 60,000 people at the end of its 2019-20 financial year.

Saj Ahmad, chief analyst at StrategicAero Research, said the announced job cuts at Emirates will likely not be the last given the unprecedented damage that Covid-19 has had not just on air travel, but on the entire aviation industry as a whole.

"Emirates' massive international network means that job reductions were always a last resort option as the company staves off cash burn and expenses at a time when revenues are dried up. While Emirates SkyCargo is enjoying a resurgence in activities, the reality is that this income will never offset the lost money from passenger operations," he added.

"Whilst some salary reduction schemes have prevented bigger job cuts for now, the absence of a cure or medicinal suppressant of Covid-19 means that air travel is unlikely to even reach pre-9/11 levels within 3-5 years, let alone pre-Covid-19 levels in that same time period. For that reason, Emirates' reduction in headcount is necessary to stay competitive, agile and be ready for when air travel can resume with a degree of normalcy that we have been accustomed to for decades," said Ahmad.

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News Network
April 24,2020

Apr 24: Dubai's Supreme Committee of Crisis and Disaster Management has announced partial easing of restrictions on public movement in the emirate starting from Friday amid the COVID-19 outbreak.

The announcement is in line with the decisions of the Ministry of Health and Prevention and the National Emergency Crisis and Disaster Management Authority (NCEMA), a statement released late on Thursday said.

The move, which coincides with the start of the fasting month of Ramzan, will allow increased freedom of movement while ensuring the continuation of strict precautionary and preventive measures, the statement said.

The Committee has also outlined a new set of guidelines on movement and a list of exempted commercial activities and vital sectors, it added.

The decision to reduce restrictions on movement in Dubai follows a careful assessment of the current situation and analysis of reports from various authorities working to combat the pandemic, the committee said.

Underlining the emirate’s success in countering the spread of the virus, it said that stringent measures undertaken over the last three weeks have significantly helped to mitigate the crisis.

It further stressed that despite the partial easing of restrictions on movement, people will not be allowed to hold public or private gatherings and those who breach the guidelines will face legal action.

The need to ensure the safety and wellbeing of the community cannot be underestimated, the Committee stressed.

"Despite the difficult circumstances the world is facing today, the UAE has set an example for dealing with the crisis. This was also made possible through the commitment of all individuals and institutions both in the private and public sector,” the committee said in the statement.

“All measures undertaken by the country have been driven by the objective of safeguarding everyone’s safety and wellbeing,” it added.

Public transport (bus and metro), restaurants and cafes (except for buffet and shisha), retail sector (malls, high-street outlets and souqs), wholesale sector and maintenance shops will be allowed to operate under certain conditions, it said.

Shopping malls, markets and commercial outlets will be open daily from 12 pm to 10 pm. Restaurants and shops are allowed to operate at a maximum of 30 per cent capacity at shopping malls, it said.

Malls and retail outlets are not allowed to hold entertainment events to avoid congestion and crowding, it added.

Restaurants and cafés too have been allowed to operate but are not permitted to serve shisha and buffet. Dine-in customers are allowed but should occupy only a maximum of 30 per cent of the outlet’s capacity and only single-use cutlery can be used at restaurants and cafes, it said.

However, family entertainment facilities, cinemas, changing rooms and prayer rooms will not be allowed to operate. Hotels will be allowed to operate without opening pools, gyms, sauna and massage parlours.

A maximum of 30 per cent of the workforce of all organisations will be allowed to work from their offices while the rest will be required to work from home.

As part of the first phase of easing of restrictions, the stringent curbs on public movement will now be limited to the period between 10 pm to 6 am. During this period, the public will be allowed to leave their homes only for medical emergencies.

Individuals will be able to leave their homes between 6 am and 10 pm without a permit.

The public will be required to strictly follow precautionary measures which include maintaining physical distance from others as per guidelines and wearing a face mask. Those who do not wear a mask will be subject to a fine of AED 1,000.

Members of the public have also been allowed to exercise outside their homes provided they do not leave their area of residence. They can undertake activities such as walking, running or cycling for 1-2 hours each time. Only a maximum of three people can exercise at the same time.

Permission has also been granted to allow visit first and second degree relatives as long as gatherings are restricted to not more than five people. However, visiting high-risk individuals (individuals above 60 years and those with underlying medical conditions) should be avoided.

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Agencies
June 22,2020

Riyadh, Jun 22: The Ministry of Municipal and Rural Affairs (MMRA) in Saudi Arabia has announced the continuation of the ban on providing Shisha (hubble-bubble), and the closure of children's play areas in restaurants as a precautionary measure for protecting the health of citizens and residents from the novel coronavirus COVID-19 infection.

The new stage, in which the Kingdom is beginning to coexist with the virus, focuses on the concept of "social distancing" that has emerged since the start of the coronavirus crisis throughout the world,

It stipulates leaving at least 2 meters between one person and the other in public places to prevent the transmission of infection, in addition to covering the mouth and nose by wearing a facemask.

It also specifies complying with the preventive protocols in workplaces, stores, shops, mosques and tourist attractions, with human gatherings not to exceed 50 people, as a maximum.

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