October 2007 – Tunisia is ranked 88th among 178 countries this year, nearly same rank as last year (2006 ranking has been reviewed to reflect new methodologic changes and the introduction of 3 new countries). Strenghts
Tunisia strenghts are still enterprise creation and import-export procedures. The country implemented good reforms: it computerized the files in its property registry, reducing the time needed to register a property from 57 to 49 days. Tunisia also reduced the corporate profit tax to 30% from 35%, and enhanced its credit information by lowering the minimum loan requirement at its public registry from 20,000 DT to zero. Weaknesses
Labor code is still rigid, the legal system of contracts procurement - in which managers or majority shareholders are directly or indirectly concerned - is weak, and high taxes are still supported by medium-size enterprises. However, Tunisia made progresses in investment especially by reducing number of administrative autorizations for some activities, by reforming VAT and tax system, and by implementing law on financial transactions' security (for a better enterprise governance). A healthy macroeconomic management and a commercial openness enable investment in Tunisia.
Doing Business in Middle East and North Africa (MENA)
Egypt is the top reformer in the world for 2006/07, finds Doing Business 2008—the fifth in an annual series issued by the World Bank and IFC. Egypt outpaced other reformers worldwide and in the Middle East and North Africa in making it easier to do business, with improvements in five of the 10 areas studied by the report. Saudi Arabia —the seventh-fastest reformer globally and second-fastest in the region—joined the ranks of the top 25 countries worldwide on the ease of doing business. It had reforms in three of the 10 areas studied. The country has made starting a business more accessible by eliminating what had been, in U.S. dollar terms, the highest minimum capital requirement in the world.
The Middle East and North Africa saw 25 reforms including three negative changes—in 11 of its economies. The region ranks fourth in the world—behind Eastern Europe and Central Asia, South Asia, and the OECD high-income countries—on the pace of reform. Rankings criteria
The rankings are based on 10 indicators of business regulation that track the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure. They do not reflect such areas as macroeconomic policy, quality of infrastructure, currency volatility, investor perceptions, or crime rates. Since 2003 Doing Business has inspired or informed more than 113 reforms around the world. “The report finds that equity returns are highest in countries that are reforming the most,” said Michael Klein, World Bank/IFC Vice President for Financial and Private Sector Development. “Investors are looking for upside potential, and they find it in economies that are reforming—regardless of their starting point,” he added. Large emerging markets are reforming fast: Egypt, China, India, Vietnam, and Turkey all improved in the ease of doing business. The report also finds that as more countries simplify regulation to make it easier to do business, more entrepreneurs are going into business. Besides Egypt, the other top 10 reformers this year are, in order, Croatia, Ghana, FYR Macedonia, Georgia, Colombia, Saudi Arabia, Kenya, China, and Bulgaria. Reformers made it simpler to start a business, strengthened property rights, enhanced investor protections, increased access to credit, eased tax burdens, and expedited trade while reducing costs. In all, 200 positive reforms—in 98 economies—were introduced between April 2006 and June 2007. Higher rankings on the ease of doing business are associated with higher percentages of women among entrepreneurs and employees. “Increased regulatory reform leads to especially large benefits for women,” said Dahlia Khalifa, Doing Business spokesperson. “Women often face regulations that may be aimed at protecting them, but that instead force women into the informal sector, where they have little job security and few social benefits.” Women in the United Arab Emirates and Yemen are forbidden to work at night. And now so are women in Kuwait, because of a new law passed in June 2007. |
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