Bahrain is among the World Bank group’s Top 10 economies where business climates improved the most, according to the Doing Business 2020 study which recognizes the work countries have done to improve their regulatory environment.

The study which review 190 economies says that Bahrain implemented the highest number of reforms, improving in nine out of ten areas measured by the report. Bahrain also led both the region and the world in the number of reforms implemented. China and Saudi Arabia followed with eight reforms each.

The report says that Bahrain’s recently introduced bankruptcy law strengthened the rights of minority shareholders and revamped the process of obtaining building permits through a new online platform. Besides, the Kingdom made enforcing contracts easier by creating a specialized commercial court, establishing time standards for key court events and allowing electronic service of the summons. Bahrain is also ranked as the best performer globally in tax compliance time, requiring just 22.5 hours per yer to file and pay taxes.

For starting a business, Bahrain (ranked 67) takes 8.5 days, while immediate neighbor Saudi Arabia (38) takes 10.5 days. Top-ranked UAE needs just 4 days. To provide construction permits, Bahrain (17) takes 71 days, whie Saudi (28) takes 100 days. UAE (3) does that in 47.5 days.

Bahrain (79) takes 69 days to provide a new electrical connection where Saudi (18) takes 35 days and UAE (1) 7 days.

Overall, the region performs the best in the areas of paying taxes, getting electricity and dealing with construction permits. However, some economies in the region still fall short.

The report further stated that there is an urgent need for economic diversification–on a steady rise–which is partly driving reforms across the Gulf economies. Economies in the region implemented the most reforms on record to ease doing business for domestic enterprises–57 business regulatory reforms, up from 43 during the previous 12-month period covered by the study. The region thus hosted the four most-improved countries worldwide: Saudi Arabia, Jordan, Bahrain and Kuwait accounting for “almost half of the region’s reforms”.

Source Credit: The Daily Tribune–News of Bahrain