Kuwait Direct Investment Promotion Authority (KDIPA) said on Wednesday that World Bank Group report on Doing Business for 2016 showed a relative improvement in the position of Kuwait in the ease of doing business index. Kuwait registered a relative increase in the distance to frontier (DTF) according to the 2016 report from 59.77 in 2015 to 60.17 in 2016, the KDIPA added in press remarks to KUNA.
The World Bank Group report explained that the improvement in Kuwait's position is due to a number of reasons, including the Minister of Commerce and Industry's decision number 239/2015, in favor of decreasing the minimum capital requirement of companies, it said. This positive decision affected the cost of companies' minimum capital, especially those of limited liability, as the cost dropped from 74 percent of per capita income in 2015 report, to 8.2 percent in 2016 report, KDIPA added.
Kuwait's ranking in starting a business component improves from 150 to 148 among a list including 189 countries in the report, as the DTF increased from 71.28 percent to 75.37 percent, it mentioned. Despite the relative enhancement in this component, the World Bank Group registers a slight decrease in Kuwait's overall ranking from 100 in 2015 to 101 in 2016 report, it added.
Regarding the detailed data mentioned by the World Bank Group in its report according to its specialties, several improvements were monitored in the business environment in Kuwait, it said.
Among World Bank Group report on doing business 2016 improvements, we find a list of new indicators, building quality control index in issuance of construction licenses, as Kuwait reached 11, in a scale from 0 to 15 indicator, it added. Within the getting electricity component, another indicator is the reliability of supply and transparency of tariff index in a scale from 0 to 8, as Kuwait recorded three.
In properties registration, overall quality of land administration index was newly listed in a scale 0 to 30, as Kuwait registered 17.5, it said. In enforcing contacts, the quality of judicial processes index was listed in a scale from 0 to 18, and Kuwait ranked the 8th, it said.
Among the improvements in Kuwait's business environment, services have been developed at a number of ministries and state bodies, it mentioned. In the component of getting credit, credit bureau coverage increased from 32 percent in 2015 to 34.2 percent in 2016 report, out of the total adult population.
Meanwhile, regarding the credit registry coverage, Kuwait reached 15.3 in 2016, after only 10.8 percent in 2015 out of the total adult population. This approach towards a better performance in the field of business enforces KDIPA towards exerting further efforts to achieve more improvements, in cooperation and coordinated with related bodies according to the new strategy followed by the World Bank Group.