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Mierta Capaul, World Bank Group
December 8, 2007Semiramis Intercontinental Hotel, Cairo
2
What are the Doing Business indicators?
2007 2008• 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
2009
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Top 30 countries on the ease of doing business
16. Switzerland17. Estonia18. Georgia 19. Belgium20. Germany21. Netherlands22. Latvia23. Saudi Arabia24. Malaysia25. Austria26. Lithuania27. Mauritius28. Puerto Rico29. Israel30. Korea
1. Singapore2. New Zealand3. United States4. Hong Kong, China5. Denmark6. United Kingdom7. Canada8. Ireland9. Australia10. Iceland11. Norway12. Japan 13. Finland14. Sweden15. Thailand
126. Egypt
Source: Doing Business database
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Egypt is the world’s top reformer
Economy Starting a
business
Dealing with
licenses
Employing
workers
Registering property
Getting credit
Protecting
investors
Paying taxes
Trading across
borders
Enforcing
contracts
Closing a
business
Egypt
Croatia
Ghana
Macedonia FYR
Georgia
Colombia
Saudi Arabia
Kenya
China
Bulgaria
5
Egypt’s rank remains below average in the region
Countries that improved their ranking in DB08
2329
4049
68
8085 88
113117
125 126 129135 137
141146
Saudi A
rabia
Isra
el
Kuwait
Oman
United A
rab E
mira
tes
Jord
an
Leban
on
Tunisia
Yemen
Wes
t Ban
k an
d Gaz
a
Alger
i
aEgyp
t
Moro
cco
Iran
Syria
Iraq
Djibouti*
.. although Egypt made the single fastest climb in the overall ranking – jumping 26 places in one year.
Rank on the ease of doing business
Source: Doing Business database
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Alexandria, Assiut, Cairo
Starting a businessDealing with licensesRegistering property
Reforms in getting credit, protecting investors, trading across borders, paying taxes
Doing Business in Egypt 2008 measuring 3 indicators across 3 governorates
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Is it easy to start a business – or not in Alexandria, Assiut, and Cairo
• Registering business at one-stop shop in Assiut or Alexandria has become as easy and almost as fast as in Cairo
• The boldest reform in 2006/7 was to cut the minimum capital requirement – to 12.9% of income per capita
Procedures(number)
Time(days)
Cost(% of income per
capita)
Alexandria 8 15 28.6
Assiut 8 14 28.6
Cairo 7 9 28.6
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Outcome of reform: More new businesses
5367
74
49
87 808993
152
103
148
123
0
20
40
60
80
100
120
140
160
January February March April May June
2006 Before reform
2007 After reform
Source: Doing Business database
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Where is it easy to deal with licenses in Alexandria, Assiut, and Cairo
• 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
Procedures (number)
30
19
28
0
5
10
15
20
25
30
35
Alexandria Assiut Cairo
Time (days)
0
50
100
150
200
250
300
Alexandria Assiut Cairo
249
109
207
Source: Doing Business database
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Fewer construction procedures in Assiut
Procedures before construction
Procedures during construction
Procedures after construction
Procedures associated with utilities
Source: Doing Business database
9 9 11
1
1010
5
55
4
44
Assiut Cairo Alexandria
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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
0
20
40
60
80
100
120
140
160
180
Procedures
Tim
e (d
ays
)
Assiut
(33 days)
Alexandria
(159 days)
Time needed to register property in Alexandria and Assiut
Source: Doing Business database
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Improving Egypt’s rankings by adopting good practices within the country
Indicator Global ranking Egypt (Cairo)
Best classified city in Egypt
Global ranking best classified city
Days to open a business
16 Cairo 16
Cost to register property
23 Assiut 20
Days to deal with licenses
130 Assiut 25
Procedures to open a business
43 Cairo 43
Days to register property
154 Assiut 58
Cost to open a business
102 Alexandria, Assiut, Cairo
102
Procedures to deal with licenses
160 Assiut 104
Procedures to register property
105 Alexandria, Assiut, Cairo
105
Cost to deal with licenses
119 Alexandria, Cairo 119
13
√ Puebla
√Mexico City
√Coahuila
√ Chihuahua
√√San Luis Potosí
√√Nuevo León
√√Guanajuato
√√√Yucatán
√√√Querétaro
√√√Aguascalientes
Enforcing contracts
Registering property
Starting a business
What gets measured - gets done9 of 12 Mexican cities benchmarked in 2006 and 2007 reformed
14
Investors look for upside potential
Source: Doing Business database, Morgan Stanley Capital International data
15
OECS
Brazil
Colombia
Mexico
Phillipines
India
Morroco
New York
RussiaSEE
ItalyChina
Bangladesh
Turkey
South Africa
Pakistán
Abu Dhabi
Central Asia
Global roll out Subnational and Regional Doing Business projects
Egypt
OECS
Brazil
Colombia
Mexico
Philippines
India
Morocco
NewYork
RussiaSEE - Balkans
ItalyChina
Bangladesh
Turkey
South Africa
Pakistan
Abu Dhabi
Central Asia
EgyptOngoing
Planned
