Ease of Doing Business (EODB)

Ease of Doing Business (EODB)
Ease of Doing Business (EODB) is a ranking system initiated by the World Bank Group. In the EODB index,
'higher rankings' (a lower numerical value) indicate better, usually simpler, regulations for businesses and
stronger protections of property rights.
Saudi Arabia’s performance in EODB rankings is given below
Analysis of Parameters
2 parameters where Saudi Arabia has fared better:
1. Protecting minority investors- Saudi Arabia strengthened minority investor protections by providing clear
rules for the liability of directors and increasing the role of shareholders in major decisions.
2. Registering property- Saudi Arabia has one of the best property transfer laws, single window systems
which makes it one of the best countries in this aspect.
2 parameters where Saudi Arabia has performed worst:

1. Starting a business
2. Resolving insolvency
Global Competitiveness
The World Economic Forum (WEF) publishes a yearly report since the year 2004, The Global Competitiveness
Report (GCR). This report ranks countries on the basis of Global Competitiveness Index. The report "assesses the
ability of countries to provide high levels of prosperity to their citizens". This in turn depends on how productively
a country uses available resources. Therefore, the Global Competitiveness Index measures the set of institutions,
policies, and factors that set the sustainable current and medium-term levels of economic prosperity.
Overall Global Competitiveness Score & Ranking

Saudi Arabia’s score: 67.5
Saudi Arabia’s rank: 39
The graphic below presents Saudi Arabia’s score and ranking across the 12 pillars of competitiveness
3 parameters where Saudi Arabia scores the best

1. Macroeconomic stability
2. Market Size
3. Infrastructure
3 parameters where Saudi Arabia scores the worst
1. Innovation capability
2. Business Dynamism
3. Labour market
Corruption Perception Index
The index, which ranks 180 countries and territories by their perceived levels of public sector corruption
according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean.
Transparency International commissioned the University of Passau's Johann Graf Lambsdorff to produce the
CPI. The 2012 CPI takes into account 16 different surveys and assessments from 12 different institutions.
Saudi Arabia’s rank and score 2015-18
Year Rank Score

2015 48/167 52/100
2016 62/176 46/100
2017 57/180 49/100
2018 58/180 49/100
Freedom in the World Index

Saudi Arabia is one of the worst performers in this category. The country has long targeted political dissidents
within and outside its own territory with practices such as harassment, kidnapping, extradition requests and
assassinations. Saudi Arabia’s murder of journalist Jamal Khashoggi in Turkey is a manifestation of the
authoritarian regime in Saudi Arabia. Saudi Arabia, after the government drew praise for easing its draconian ban
on women driving, authorities arrested high-profile women’s rights activists and clamped down on even mild
forms of dissent
Aggregate Freedom Score and Rating

Aggregate Freedom Score-7 (lowest score)
Aggregate Freedom Rating-7 (lowest rating)
Rating on political rights and civil liberties

Rating on political rights- 7
Rating on civil liberties- 7
How attractive is your country as an investment decision and why?
 Both businesses and individuals benefit from the country’s competitive tax regime. Among the common
forms of taxation absent in Saudi Arabia are income tax, sales tax, and property tax (although not currently
present, Value Added Tax (VAT) is planned for implementation in 2018 across the GCC, including in
Saudi Arabia)
 Tax exemptions are available on earnings from exports, while tax credits apply on research and
development investments.
 For overseas investors, there is further good news, with a relatively low 20 percent corporate tax on total
profits from companies and 5% withholding tax, but any losses can be carried forward indefinitely to
offset future taxes
 But, with the recent drone attacks, there is a high risk involved for investors as regulations might be high
Overall, Saudi at the moment is a good place to invest as the Vision 2030 program is in full swing.
Which sectors would you suggest to investors for investments?

 Financial Services
The country did not face much disruption during the 2008 financial crisis and The Saudi Stock exchange
is the largest stock exchange in the Gulf region. It can be a great business idea to start in Saudi Arabia.
 Agricultural sector
Going for a startup of the business of wheat in Saudi Arabia is one of the unique business ideas in Saudi
Arabia in 2019. You can earn a lot of money by cultivating wheat and barley both on medium and small
scales.
 Health care
KSA has one of the largest markets for selling the medical products and the healthcare equipment in
Middle East. There is a thought of catering the unmet demand of healthcare services throughout the
Middle-eastern world. So it can be a great business opportunity in Riyadh and other cities of Saudi Arabia.
 Solar energy
You all know about the extreme hot climate of Saudi Arabia. This climate is perfect for the production of
solar energy. The Government of KSA also encourages the investments made for the creation of solar
power as an alternative source of power; thus reducing the pollution produced by fuel consumption. It
can be a great business idea to make an investment in the sector of the production of solar energy.
 Honey and Beverages

There is a great demand for purified honey as well as the processed beverages in the country. Therefore,
there is an excessive potential in such a kind of business. People consume honey in Saudi Arabia because
of the therapeutic advantages. Almost every citizen of Saudi Arabia takes honey as least once a week. You
see, how lucrative it would be to sell the product.

Ease of Doing Business (EODB)

Uploaded by

Copyright:

Available Formats

Ease of Doing Business (EODB)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ease of Doing Business (EODB)

Uploaded by

Copyright:

Available Formats

Ease of Doing Business (EODB)

2 parameters where Saudi Arabia has performed worst:

Overall Global Competitiveness Score & Ranking

3 parameters where Saudi Arabia scores the best

Saudi Arabia’s rank and score 2015-18

Year Rank Score

Freedom in the World Index

Aggregate Freedom Score and Rating

Rating on political rights and civil liberties

Which sectors would you suggest to investors for investments?

 Honey and Beverages

You might also like