Doing business is not getting easier

World Bank report points to persistent weaknesses

Authorities in Lebanon made no efforts to improve the country’s rank in Doing Business. Lebanon ranked 111th out of 189 countries in terms of ease of doing business, according to the ‘Doing Business 2014’ report jointly issued by World Bank and International Finance Corporation.

The country’s ranking slightly improved compared to the previous year when it ranked 115th among 185 economies.

Lebanon came in ninth place among 21 Arab states. It was directly preceded by Kuwait (104) and Morocco (87), ahead of Jordan (119) and Egypt (128). The United Arab Emirates came in first place (23).

The report benchmarks the regulations that affect private sector firms. It presents quantitative indicators on 11 areas of business regulation such as starting, running, and closing down a business.

In terms of starting a business, Lebanon regressed to 120th place. The process of obtaining construction permits, for example, actually became longer, requiring 20 procedures and 246 days (27 days more than in the previous year).

It also regressed in terms of paying taxes and access to electricity. Three procedures and 35 days are required to get electricity in UAE compared to five procedures and 75 days in Lebanon. Taxes are paid 19 times over a period of 180 days locally whereas they are paid four times in the UAE.

Resolving insolvency improved by more than 30 places compared to last year, putting the country in 93rd place. Protecting investors was also up by two places to 98th place.

Other main areas of business included registering property, which dropped four places compared to 2013. Getting credit dropped five places while trading across borders predictably went down two spots. Enforcing contracts went down five slots as well but actually matched UAE figures.