1. dOINg BuSINeSS
HOW EASY
IS IT?
In recent years, the legal framework for setting up a business in Qatar has
been streamlined and simpli�ied to provide a more business-friendly process.
However, work remains to be done if we are to improve Qatar’s competitiveness
in the world. Ahmad Hawi, Statistical Specialist, QDB, examines the World
Bank’s publication which highlights the areas for improvement.
The World Bank publishes an index that measures the The index is calculated as the simple average of the
ease of doing business in 183 countries around the world. country’s ranking on ten business areas (see T able 1).
T make the data comparable across countries, the index
o The index is based on in-depth interviews and thus
examines limited liability companies operating in the reflects prevailing opinions and attitudes amongst
countries’ largest city. The index measures the easiness, or business people. However, it does not include measures
lack thereof, that a local entrepreneur faces in opening on the quality of infrastructure, security, transparency,
and running a small to medium-size enterprise (SME). institutional development or macroeconomic conditions.
Likewise, it measures the impact of business regulations
and their enforcement across the countries. Qatar’s overall rank on the ease of doing business indicator
is 36 out of 183 economies worldwide, an improvement of
two positions compared to last year.
Ahmad Hawi is a Statistical Specialist at QDB. He worked as Likewise, the table shows Qatar’s ranking on each of
statistical analyst at Dubai Chamber of Commerce and as Statistician the ten topics that comprise the aggregate ease of
for World Health Organisation. He graduated from University of doing business indicator. The green arrows indicate
Versailles, France, in 2004 with a master’s degree in statistics and has an improvement in the raking while the red ones
more than ten years of experience in the field of statistics and data show a decline and the yellow ones reflect no change.
analysis. Ahmad can be contacted at a.hawi@qdb.qa As can be seen, the results reveal the changing nature
38

2. Table 1: Qatar ranking on ease of doing business
TOPIC RANKINGS 2012 2011 Change in Rank
When compared to OCED
INDICATORS Qatar MENA
Ease of Doing Business 36 38 2 economies, however, there is 8
Procedure (number) 8
Starting a Business 116 124 8 clearlyDuration (days)improvement.
room for 12 20
Dealing with Construction Permits 24 24 0 Indeed, the of income pernumber of
Cost (% average capita) 8.3 35
Getting Electricity 18 18 0 proceduresMin. the OECD is five
Paid-in in Capital
64 86.7
Registering Property 37 37 0 (% of income per capita)
(compared to eight in Qatar)
Getting Credit 98 130 32
while the cost is almost half of
Protecting Investors 97 93 -4
Paying Taxes 2 2 0
that endured in Qatar. Paid-in
Trading Across Borders 57 47 -10 minimum capital is significantly
Enforcing Contracts 95 97 2 less in OECD countries as well.
Resolving Insolvency 37 36 -1
Source: QDB, based on data from World Bank
of our economy. Qatar is within the upper echelon For entrepreneurs, knowing how easy and viable it is to
when it comes to the ease of paying taxes and getting do business in a country is fundamental. Knowing how
electricity, but it is only mid-level as far as starting a the economy does when compared to other economies,
Rank INDICATORS business is concerned.
Qatar MENA OECD including within the region (see T able 2), is also very useful.
Procedure (number) 8 8 5 According to the data, starting a business in Qatar requires
Duration (days)
Furthermore, the index 12 remained unchanged
12 20
on average eight procedures which is the same throughout
regarding the ease of dealing with construction the MENA region. On the other hand, Qatar ranked much
Cost (% of income per capita) 8.3 35 4.7
permit, getting electricity, registering property better in terms of the duration, cost and minimum paid-up
Paid-in Min. Capital
(% of income per capita) and paying taxes, while it 14.1
64 86.7 deteriorated with respect compared to the average MENA region.
to property investor, trading across borders and
RANK resolving insolvency. It is worth pointing out that this
RANK When compared to OCED economies, however, there
RANK
80 deterioration does not mean that Qatar has made its
80 is clearly room for improvement. Indeed, the average
80
business regulation less friendly, but rather that the number of procedures in the OECD is five (compared
70 70 70
2012 2011
perception amongst local business people worsened
71 to eight in Qatar) while the cost is almost half of that
2012 2011
67
vis-a-vis business perceptions in other countries. The endured in Qatar. Paid-in minimum capital is significantly
60 60 60
case where Qatar’s indexes improved is similar. less in OECD countries as well.
50 53 50 50
49
40 40 Table 2: Doing business comparison, 2012
40
30 35 36 38 38
30 35 36 38 38
INDICATORS30
Qatar’s overall rank on 2012 33 2011 doing2in Rank
TOPIC RANKINGS
33
Ease of Doing Business
the ease of Change
36 38
33
Qatar MENA OECD 33
Procedure (number) 8 8 5
20
business indicator is 36116 of 183 economies
Starting a Business out 124 8
20 20
Duration (days) 12 20 12
10 worldwide, an improvement of two positions
Dealing with Construction Permits
12 10
24 24 0 10 Cost (% of income per capita)
10
12 10
8.3 35 4.7
Getting Electricity 18 18 0 Paid-in Min. Capital
0 compared to last year. 37
Registering Property 37 0 0 (% of income0 capita)
per 64 86.7 14.1
Saudi Arabia Credit
Getting UAE Qatar Bahrain
98 130Oman Kuwait
32 Saudi Arabia UAE Qatar Bahrain
Protecting Investors 97 93 -4 Source: QDB, based on data from World Bank
Paying Taxes GCC ranking on ease 2 doing business, 2011-2012
Figure1: of 2 0
NK RANK Trading Across Borders 57 47 -10 RANK
80 80 Enforcing Contracts 95 97 2 80
Resolving Insolvency 37 36 -1 The above analysis may be used as a roadmap for
70 70 70
2012 2011 71 improvements in Qatar. There is no doubt that
67
60 60 60 excessive bureaucracy and red-tape in general have
50 50 50
hindered Qatari business in the past. Comparisons
53
49 with other countries, including the indexes from the
40 40 40
World Economic Forum, can establish the necessary
30 30 35 36 38 38
30 benchmarks to guide regulatory changes that meet
33 33
business needs in the future. Benchmarks against
20 20 20
highly competitive economies, in particular, would
10 10
12 10
10 provide a standard of competitiveness that would boost
0 0 0
entrepreneurial activities in Qatar. The Ministry of
RANK Saudi Arabia UAE Qatar Bahrain Oman Kuwait
RANK Business and Trade continues to work on improving the
RANK
80
Source: QDB, based on data from World Bank
80 business environment of Qatar, while strengthening its
80
70 70
position as a safe haven for investments.
70
2012 2011 71 2012 2011 71
67 67
60 60 60
50 53 50 50 53
49 JaNuary 2013
49 39
40 40 40
30 35 36 38 38
30 30 35 36 38 38