Reforms earn World Bank’s praise

The UAE climbed 14 places in a key World Bank ranking for regulatory reform after taking steps to eliminate capital requirements for start-up companies and simplifying the registration of new businesses.

The country rose in the ranking compiled by the World Bank and its International Finance Corporation after the UAE Government abolished a Dh150,000 (US$40,839) minimum capital requirement for some start-ups.

“That is a very important reform,” said Dahlia Khalifa, a World Bank senior economist. “The Doing Business report focuses on the SME sector and we take this from the vantage point of domestic entrepreneurs. Minimum capital requirements can stand as a big obstacle for small business start-ups.”