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Doing Business Indicators: Egypt's Reforms and Rankings

This report examines the Doing Business indicators in Egypt from 2007-2008, focusing on starting a business, dealing with licenses, and registering property, among other factors. It also highlights Egypt's rise in the rankings and the reforms implemented to improve the ease of doing business. The report includes a comparison of Egypt with other top countries in terms of ease of doing business.

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Doing Business Indicators: Egypt's Reforms and Rankings

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  1. Mierta Capaul, World Bank Group December 8, 2007 Semiramis Intercontinental Hotel, Cairo 1

  2. What are the Doing Business indicators? 2007 2008 2009 • Starting a business • Dealing with licenses • Employing workers • Registering property • Getting credit • Protecting investors • Paying taxes • Trading across borders • Enforcing contracts • Closing a business • Update of 2007 • Add 3 countries • Reformer’s Club: • 11 case studies • Add Not paying bribes • Add Using infrastructure • Research program on regulation and business opportunities for women

  3. Top 30 countries on the ease of doing business • Singapore • New Zealand • United States • Hong Kong, China • Denmark • United Kingdom • Canada • Ireland • Australia • Iceland • Norway • Japan • Finland • Sweden • Thailand • Switzerland • Estonia • Georgia • Belgium • Germany • Netherlands • Latvia • Saudi Arabia • Malaysia • Austria • Lithuania • Mauritius • Puerto Rico • Israel • Korea 126. Egypt Source: Doing Business database

  4. Egyptis the world’s top reformer

  5. Egypt’s rankremains below average in the region 146 141 137 135 129 126 125 117 113 88 85 80 68 49 40 29 23 Israel Kuwait Oman Egypt Iran Syria Iraq Djibouti* Jordan Lebanon Tunisia Yemen Morocco Algeria Saudi Arabia United Arab Emirates West Bank and Gaza .. although Egypt made the single fastest climb in the overall ranking – jumping 26 places in one year. Rank on the ease of doing business Countries that improved their ranking in DB08 Source: Doing Business database

  6. Doing Business in Egypt 2008measuring 3 indicators across 3 governorates Alexandria, Assiut, Cairo • Starting a business • Dealing with licenses • Registering property Reforms in getting credit, protecting investors, trading across borders, paying taxes

  7. Is it easy to start a business – or notin Alexandria, Assiut, and Cairo • Registering business at one-stop shop in Assiut or Alexandria has become as easy and almost as fastas in Cairo • The boldest reform in 2006/7 was to cut the minimum capital requirement – to 12.9% of income per capita

  8. Outcome of reform: More new businesses 2006 Before reform 2007 After reform 152 148 160 140 123 120 103 93 100 89 87 80 74 80 67 53 60 49 40 20 0 January February March April May June Source: Doing Business database

  9. Where is it easy to deal with licensesin Alexandria, Assiut, and Cairo 35 300 30 28 30 250 25 200 19 20 150 15 100 10 5 50 0 0 Alexandria Assiut Cairo Alexandria Assiut Cairo Procedures (number) Time (days) • It takes 26 procedures on average to get a construction license across Egypt, time varies but cost is the same • Getting a construction permit is easiest in Assiut 249 207 109 Source: Doing Business database

  10. Fewer construction procedures in Assiut 4 4 5 5 4 10 10 5 1 11 9 9 Assiut Cairo Alexandria Procedures before construction Procedures during construction Procedures after construction Procedures associated with utilities Source: Doing Business database

  11. Registering property in Alexandria and Assiut • There are 7 procedures, cost varies from 0.7-1 % of property value, but there are big differences in time Time needed to register property in Alexandria and Assiut Alexandria 180 (159 days) 160 Time (days) 140 120 100 80 60 Assiut 40 (33 days) 20 0 Procedures Source: Doing Business database

  12. Improving Egypt’s rankings by adoptinggood practices within the country

  13. Starting a business Registering property Enforcing contracts Aguascalientes √ √ √ Querétaro √ √ √ Yucatán √ √ √ Guanajuato √ √ Nuevo León √ √ San Luis Potosí √ √ Chihuahua √ Coahuila √ Mexico City √ Puebla √ What gets measured - gets done 9 of 12 Mexican cities benchmarked in 2006 and 2007 reformed

  14. Investors lookfor upside potential Source: Doing Business database, Morgan Stanley Capital International data

  15. Global roll outSubnational and Regional Doing Business projects Central Asia Russia SEE - Balkans New York Italy China Morocco Pakistan OECS Abu Dhabi Mexico Philippines India Brazil Colombia Bangladesh Turkey Egypt South Africa Central Asia Russia SEE New York Italy China Morroco Pakistán OECS Abu Dhabi Mexico Phillipines India Brazil Colombia Bangladesh Ongoing Planned Turkey Egypt South Africa

  16. Manythanks! www.DoingBusiness.org/subnational www.DoingBusiness.org/egypt MCapaul@worldbank.org

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