Business Reforms in Middle East & North Africa

Algeria

DB 2013:

Algeria improved access to credit information by eliminating the minimum threshold for loans to be included in the database.

DB 2012:

Algeria improved its credit information system by guaranteeing by law the right of borrowers to inspect their personal data.

DB 2010:

Algeria introduced new regulations to better administer the construction permitting process and ensure the timely and safe completion of construction projects.

Algeria has made it easier and less costly to register property by reducing notary fees by 0.39% of the value of the property and eliminating the capital gains tax.

Algeria reduced the corporate income tax rate from 25% to 19% for production of goods, construction and public works and tourism.

Algeria has improved contract enforcement with a new Code of Civil Procedure that reduces steps and time, and the courts are now being fully computerized that includes setting up an electronic case register and case management software.

DB 2008:

Algeria has made trading across borders more difficult by increasing the amount of inspections carried out by authorities.

Bahrain

DB 2011:

Bahrain made registering property more burdensome by increasing the fees at the Survey and Land Registration Bureau.

Bahrain made it easier to trade by building a modern new port, improving the electronic data interchange system and introducing risk-based inspections.

DB 2010:

Bahrain made obtaining construction permits easier by further consolidating preliminary approvals for building permits in the one-stop shop and reducing the time to obtain a building permit.

Djibouti

DB 2012:

Djibouti made dealing with construction permits costlier by increasing the fees for inspections and the building permit and adding a new inspection in the preconstruction phase.

Djibouti made trading across borders faster by developing a new container terminal.

DB 2010:

Djibouti eased the burden of paying taxes on businesses by introducing VAT of 7% on the supply of goods and services to replace the consumption tax.

DB 2009:

Port administration improvements and abolishing of documents decreased export and import documentation, as well as import time.

DB 2008:

Djibouti eased trading across borders by implementing an e-manifest system.

Property registration was sped up by improving efficiency at the Service des Domaines.

Egypt

DB 2011:

Egypt reduced the cost to start a business.

Egypt made trading easier by introducing an electronic system for submitting export and import documents.

DB 2010:

Egypt eased the process of enforcing contracts by creating commercial courts.

Access to credit information in Egypt has expanded with the addition of retailers to the database of the private credit bureau, I-score.

Egypt continued to ease the process of dealing with construction permits with the issuance of the Executive Articles of the 2008 Construction Law, and eliminating most pre-approvals for construction permits.

Egypt has eased the business start- up process by abolishing the minimum capital requirement.

DB 2009:

Egypt upgraded port facilities at Alexandria and speeded up customs clearance and greater competition in the banking sector led to a reduction in the time to open a letter of credit.

Egypt simplified administrative procedures, reorganized the business workflow between the real estate registry and the Egyptian Surveying Authority (ESA) and introduced time limits in several procedures. These reforms decreased the time to transfer a property in Cairo from 193 to 72 days.

Egypt strengthened investor protections by requiring that an independent body (auditor) assess transactions between interested parties as a prior step to approval.

Egypt passed a new building code in 2008 that aims to establish a single window for processing construction related approvals and reduce procedures and time.

Borrowers have the right to inspect the data stored in the private credit bureau, thanks to new regulations from the Central Bank of Egypt. Allowing borrowers to check their data helps improve the quality and accuracy of credit information in Egypt.

Paid in minimum capital was reduced by 20%, and cost was reduced as a result of bar association fees’ abolishment and time was cut due to tax registration automation.

DB 2008:

The cost of registering property was reduced from 3% of the property value to a low fixed fee.

Egypt eased the access to credit information by creating a new private credit bureau. The new credit bureau will distribute negative data about consumers and firms. It is guaranteed by law that borrowers can access the credit information stored in the private bureau.

Egypt eased trade by improving customs administration.

Egypt made obtaining construction permits less expensive by reducing the fee for building registration.

The minimum capital required to start a business was cut from EGP 50,000 to EGP 1,000, and halved start-up time and cost.

Iran

DB 2013:

The Islamic Republic of Iran made starting a business more difficult by requiring company founders to obtain a criminal record clearance to register a new company.

The Islamic Republic of Iran strengthened investor protections by requiring greater immediate disclosure of related-party transactions.

DB 2011:

The Islamic Republic of Iran eased business start-up by installing a web portal allowing entrepreneurs to search for and reserve a unique company name.

The establishment of a new private credit bureau improved access to credit information.

The Islamic Republic of Iran made enforcing contracts easier and faster by introducing electronic filing of some documents, text message notification and an electronic case management system.

DB 2010:

The Islamic Republic of Iran simplified business start- up with an electronic registration system.

The Islamic Republic of Iran eased the process of dealing with construction permits with the introduction of e-service offices in Tehran, streamlining the process for obtaining location approvals, construction permits and building completion certificates, and the time to obtain water and electricity connections fell substantially.

The Islamic Republic of Iran sped trade time with the installation of scanners at the port of Shahid Rajaee and reorganization of the customs clearance offices separating special goods (chemicals, petroleum) from general goods inspections.

The Islamic Republic of Iran has eased the tax burden on business by converting the sales tax into value added tax.

Iraq

DB 2012:

In Iraq starting a business became more expensive because of an increase in the cost to obtain a name reservation certificate and in the cost for lawyers to draft articles of association.

Jordan

DB 2012:

Jordan made starting a business easier by reducing the minimum capital requirement from 1,000 Jordanian dinars to 1 dinar, of which only half must be deposited before company registration.

Jordan made trading across borders faster by introducing X-ray scanners for risk management systems.

DB 2011:

Jordan improved its credit information system by setting up a regulatory framework for establishing a private credit bureau as well as lowering the threshold for loans to be reported to the public credit registry.

Jordan abolished certain taxes and made it possible to file income and sales tax returns electronically.

DB 2010:

Jordan eased the process of paying taxes for business with the introduction of an online filing and payment system, and a simplification of filing forms.

Jordan reduced property transfer fees from 10 to 7.5% of property value.

The implementation of a risk-based inspections regime of post-destination clearance for pre-approved traders as well as a reduction of the number of containers subject to physical inspection to 30% as well as the full implementation of ASYCUDA WORLD, allowing online customs declaration submission, have reduced the clearance time by customs by 2 days for exporters and 3 days for importers.

Jordan has improved contract enforcement by setting up a specialized commercial court division and equipping its courts with a computer aided case-management system. Further, a raise in threshold of the Conciliation Court (the lower Court) is expected to result in a better distribution of case load.

Jordan eased the process of dealing with construction permits by extending the services of the one-stop shop at the Greater Amman to mid-size commercial construction projects in 2009.

Jordan eased the process of business start up by offering a single reception service for company registration at the company registrar.

DB 2009:

The minimum paid in capital was reduced by more than 96%.

DB 2008:

Operations within the one-stop shop at the Company Registry were enhanced and a representative of the municipality of Amman was made present at the Company Registry, reducing the number of procedures and the time to start a business.

Kuwait

DB 2010:

Improvement of the customs administrative procedures and training of human resources have helped reduce the time to clear goods in Kuwait.

Kuwait introduced a new law that establishes a new legal procedure enabling companies in financial difficulties on the verge of insolvency to restructure.

DB 2008:

Kuwait made obtaining construction permits faster by introducing a new automated system for utility approvals and therefore reduced the total time.

The private credit bureau has added retailers to its information suppliers database.

Lebanon

DB 2012:

Lebanon made getting electricity less costly by reducing the application fees and security deposit for a new connection.

DB 2011:

Lebanon increased the cost of starting a business.

Lebanon improved its credit information system by allowing banks online access to the public credit registry’s reports.

DB 2010:

Lebanon has made it easier to pay taxes by removing the requirement to obtain permission to use accelerated depreciation, and by introducing electronic payment.

Lebanon simplified business start up process through the simplification of the formalities to stamp company books.

DB 2009:

Streamlining of the business registration process resulted in a tremendous time reduction.

Morocco

DB 2013:

Morocco made starting a business easier by eliminating the minimum capital requirement for limited liability companies.

Morocco made registering property more costly by increasing property registration fees.

DB 2012:

Morocco made dealing with construction permits easier by opening a one-stop shop.

Morocco strengthened investor protections by allowing minority shareholders to obtain any nonconfidential corporate document during trial.

Morocco eased the administrative burden of paying taxes for firms by enhancing electronic filing and payment of the corporate income tax and value added tax.

DB 2011:

Morocco strengthened investor protections by requiring greater disclosure in companies’ annual reports.

DB 2010:

Morocco has strengthened access to credit with a new private credit bureau which started operations in March 2009.

DB 2009:

New regulations in Morocco guarantee the right of borrowers to inspect the data stored in the public credit registry. By being able to review their credit information, borrowers help improve the quality and accuracy of the credit data utilized by financial institutions.

Morocco abolished the container ID card thereby speeding up the import and export process.

Effective 2008, the corporate income tax rate was reduced from 35% to 30%. Gains made from sale of certain buildings are exempt from Capital Gains Tax. Fixed registration duty rates on deeds were abolished and the various tax rates on insurance contracts were increased.

DB 2008:

Morocco made registering property more cumbersome by implementing the requirement to check several tax agencies, rather than just one, in order to obtain a tax clearance certificate.

Morocco eased trading across borders by introducing a risk-based system for inspections.

Morocco made obtaining construction permits easier by introducing a one-stop shop which made the permit application less time consuming.

Oman

DB 2013:

Oman improved access to credit information by guaranteeing borrowers’ right to inspect their personal data.

Oman reduced the maximum number of working days per week and increased the paid annual leave applicable for employees with one year of service.

DB 2012:

Oman enacted a new income tax law that redefined the scope of taxation.

Oman improved its credit information system by launching the Bank Credit and Statistical Bureau System, which collects historical information on performing and nonperforming loans for both firms and individuals.

The one-stop shop in Oman introduced online company registration and sped up the process to register a business from 7 days to 3 days.

DB 2010:

A new tax law in Oman has been legislated to modernise the existing tax regime and simplify procedures.

Oman simplified business start up with the introduction of online name registration and payment at the registry with a prepaid card.

DB 2009:

The operationalization of the one-stop shop and the simplification of licensing procedures has resulted in reducing the number of procedures and days significantly.

Qatar

DB 2013:

Qatar reduced the time to export and import by introducing a new website allowing electronic data interchange for customs clearance at the Doha seaport.

DB 2012:

Qatar made starting a business easier by combining commercial registration and registration with the Chamber of Commerce and Industry at the one-stop shop.

Qatar improved its credit information system by starting to distribute historical data and eliminating the minimum threshold for loans included in the database.

Qatar made dealing with construction permits more difficult by increasing the time and cost to process building permits.

DB 2011:

Qatar made starting a business more difficult by adding a procedure to register for taxes and obtain a company seal.

Saudi Arabia

DB 2013:

Saudi Arabia made enforcing contracts easier by expanding the computerization of its courts and introducing an electronic filing system.

Saudi Arabia made getting electricity more expensive by increasing the connection fees.

Saudi Arabia made paying taxes easier for companies by introducing online filing and payment systems for social security contributions.

DB 2012:

Saudi Arabia made starting a business easier by bringing together representatives from the Department of Zakat and Income Tax and the General Organization of Social Insurance at the Unified Center to register new companies with their agencies.

DB 2011:

Saudi Arabia made dealing with construction permits easier for the second year in a row by introducing a new, streamlined process.

An amendment to Saudi Arabia’s commercial lien law enhanced access to credit by making secured lending more flexible and allowing out-of-court enforcement in case of default.

Saudi Arabia reduced the time to import by launching a new container terminal at the Jeddah Islamic Port.

Saudi Arabia speeded up the insolvency process by providing earlier access to amicable settlements and putting time limits on the settlements to encourage creditors to participate.

DB 2010:

Saudi Arabia eased business start up with the introduction of a new one-stop Unified Office at the Ministry of Commerce that merged registration procedures and simplified the publication requirements.

Saudi Arabia sped up the process of dealing with construction permits by introducing a 1 day permitting procedure, where builders can obtain a temporary building permit allowing them to begin construction after 1 day and a final building permit after 1 week.

DB 2009:

Simplification of the start-up processes by eliminating non-added value formalities and thus reducing registration fees and number of days.

The Ministry of Commerce introduced strict deadlines for bankruptcy procedures. Auctions of debtors’ assets now take place quicker than before.

Saudi Arabia strengthened investor protections by prohibiting interested parties to vote on the approval of related-party transactions, and by increasing sanctions against directors.

Saudi Arabia adopted a comprehensive electronic system of registering title deeds. Procedures that were done manually, such as sending the original title deed to the Records Department or copy the details of the transaction are now done electronically from the Notary Public’s office.

DB 2008:

The minimum capital requirement of 1057% income per capita was eliminated and company registration was sped up.

Saudi Arabia eased importing by abolishing the requirement for a consular certificate as well as allowing the transfer of data electronically thereby not requiring hard copies of documents to be submitted. There has also been an improvement in the capacity of ports facilities, thus allowing the port of Jeddah to clear higher number of containers per day.

The credit information index for the private bureau was enhanced by launching a commercial credit bureau that issues reports including the credit exposure of companies.

Syria

DB 2013:

Syria improved access to credit information by establishing an online system for data exchange between all banks and microfinance institutions and the central bank’s credit registry.

DB 2012:

Syria eased the starting a business process by reducing the minimum capital requirement from SYP 1 million to SYP 400,000 and by reducing the cost of publication from SYP 25,000 to SYP 4,000.

DB 2011:

Syria eased business start-up by reducing the minimum capital requirement for limited liability companies by two-thirds. It also decentralized approval of the company memorandum.

Syria enhanced access to credit by eliminating the minimum threshold for loans included in the database, which expanded the coverage of individuals and firms to 2.8% of the adult population.

DB 2010:

Syria eased business start up by reducing the minimum paid in capital requirement, and allowing access to online standardized incorporation forms.

DB 2009:

The entry of private banks into the Syrian market sped up the issuing of Letters of Credit.

A new commercial code simplified the registration process, abolished the court and lawyers involvement in the registration process, and reforms at the tax directorate further simplified tax registration reducing number of procedures and time significantly.

DB 2008:

Syria made paying taxes less costly for companies by reducing the corporate income tax rate. At the same time, Syria set up a large-taxpayer unit to make it easier for large businesses to pay taxes.

Syria enforced the requirement for Limited Liability Companies and Joint Stock Companies to publish their memorandum of association in the official gazette and showing proof of payment.

Tunisia

DB 2011:

Tunisia introduced the use of electronic systems for payment of corporate income tax and value added tax.

Tunisia upgraded its electronic data interchange system for imports and exports, speeding up the assembly of import documents.

DB 2010:

Tunisia has increased the tax cost of employment by raising social security contributions.

Through the expansion of the TradeNet electronic single window, Tunisian traders can quickly file all documents required to clear their cargo online. While this has decreased the delays of processing by 2 days, the requirement to still physically provide original documents obstruct on the greater impact the technological innovation could have.

Tunisia amended the Code des Sociétés Commerciales that strengthened investor protections by requiring greater corporate disclosure.

DB 2009:

Paid-in minimum capital was abolished.

After a legal reform, Tunisia now collects and distributes more detailed information from banks, including positive information (like loan amounts) and negative information (like arrears and defaults). Also, it is now guaranteed by law that individuals and firms can consult their credit data in all Central Bank offices.

Tunisia required freight arriving at the port to be accompanied by a unit of the customs authority and thereby increased the time to import.

Tunisia strengthened investor protections by allowing minority investors to request in court the rescission of prejudicial related-party transactions.

On March 15, 2008, the Ministry of Finance introduced the option for téléliquidation which enables online declaration of taxes accompanied by physical payments at the tax bureaus.

DB 2008:

Tunisia made paying taxes less costly for companies by reducing the corporate income tax rate.

Credit information was enhanced by lowering the minimum loan requirement at its public registry from 20,000 DT to zero.

Property registry files were computerized, reducing the time needed to register a property.

United Arab Emirates

DB 2013:

The United Arab Emirates made starting a business easier by eliminating the requirement for a company to prepare a name board in English and Arabic after having received clearance on the use of office premises.

In the United Arab Emirates the Dubai Electricity and Water Authority made getting electricity easier by introducing an electronic “one window, one step” application process allowing customers to submit and track their applications online and reducing the time for processing the applications.

The United Arab Emirates made paying taxes easier for companies by establishing an online filing and payment system for social security contributions.

DB 2012:

The United Arab Emirates made starting a business easier by merging the requirements to file company documents with the Department for Economic Development, to obtain a trade license and to register with the Dubai Chamber of Commerce and Industry.

The United Arab Emirates improved its credit information system through a new law allowing the establishment of a federal credit bureau under the supervision of the central bank.

DB 2011:

The United Arab Emirates enhanced access to credit by setting up a legal framework for the operation of the private credit bureau and requiring that financial institutions share credit information.

The United Arab Emirates streamlined document preparation and reduced the time to trade with the launch of Dubai Customs’ comprehensive new customs system, Mirsal 2.

DB 2010:

Trading across borders in Dubai has improved due to greater capacity at the container terminal, the elimination of the terminal handling receipt as a necessary document, and increased trade finance products.

The United Arab Emirates eased the process of business start-up by abolishing the minimum capital requirement and removing the requirement to show proof of deposit of capital for registration, and further simplified the documents necessary for registration.

The United Arab Emirates continued to improve it's online system for processing building permits, which sped up building permit delivery times.

DB 2009:

The United Arab Emirates introduced e-filing.

The United Arab Emirates established a new private credit bureau that collects information on all loans. Borrowers also have the right to inspect their credit data in the new bureau. The bureau will significantly increase the capacity of banks to better assess the credit worthiness of borrowers.

DB 2008:

United Arab Emirates eased the process of starting a business by allowing the publication of the records of the company to be done at DED.

West Bank and Gaza

DB 2013:

West Bank and Gaza made transferring property more costly by increasing the property transfer fee.

West Bank and Gaza improved access to credit information by guaranteeing borrowers’ right to inspect their personal data.

DB 2011:

West Bank and Gaza made starting a business more difficult by increasing the lawyers’ fees that must be paid for incorporation.

More efficient processes at Palestinian customs made trading easier in the West Bank.

DB 2010:

West Bank and Gaza made it more difficult to start a business by increasing the minimum capital requirement.

In the West Bank and Gaza, contract enforcement has sped up as new judges have been trained, recruited and appointed. Courts now have an “enforcement judge” in charge solely of execution, and now possess computerized case management software.

West Bank and Gaza has sped up the process of registering property with a major project to computerize records at the land registry.

DB 2009:

West Bank and Gaza’s public credit registry set up an online system for banks to update information and obtain credit reports. Facilitating the exchange of information increases the quality and scope of information distributed by the public credit registry.

Rising prices for construction materials and price indexation increased the cost of dealing with building permits by ILS 14,923.499.

Full operationalization of the Information Management System project at the commercial registry resulted in substantial time reduction.

DB 2008:

The public credit registry lowered the minimum loan requirement from 10,000 USD to 0, and instructed all the banks to disclose all loans granted to customers without minimum requirements; coverage has tripled.

West Bank and Gaza reduced the tax burden for companies by reducing the CIT rate.

Yemen

DB 2012:

The Republic of Yemen enacted a new tax law that reduced the general corporate tax rate from 35% to 20% and abolished all tax exemptions except those granted under the investment law for investment projects.

DB 2010:

The implementation of a risk-based inspection and the installation of an EDI system has reduced the time required to clear goods at the customs.

The Republic of Yemen improved its access to credit information by removing the minimum loan threshold for inclusion in the database and guaranteeing the right of borrowers to view their credit reports.

The Republic of Yemen simplified the process of business start up by deleting the requirement of obtaining a bank account certificate as a requirement to register the company.

DB 2009:

The activation of the one-stop shop made it possible to complete the start-up process at once in a single location and made it easier to obtain a license from the municipality and to register with the chamber of commerce and the tax office. It also abolished the seal and paid-in minimum capital requirements reducing substantially the number of procedures and days.