Saudi Arabia’s economy has been recognised as one of the most notably improved in Doing Business 2020. With an improvement score of 7.7, Saudi is the most improved out of the economies with eight major reforms.
The reforms that have been made to put Saudi so high on the list include starting a business, dealing with construction permits, getting electricity and credit, protecting minority investors, trading across borders, enforcing contracts and resolving insolvency.
Details of some of the reforms made are below.
Starting a business
Saudi Arabia has made starting a business easier by merging several pre- and post registration procedures.
Dealing with construction permits
Handling construction permits was easier by launching an online platform and by enabling civil defense approval after the issue of the building permit.
Saudi Arabia improved access to credit by introducing a secured transactions law and insolvency law. These new laws provide secured creditors with absolute priority inside bankruptcy, allow all types of debts and obligations to be secured between the parties, and allow out-of-court enforcement of security interests.
Protecting minority investors
Saudi Arabia strengthened minority investor protections by increasing access to evidence at trial.
Trading across borders
Import and export was made easier by improving electronic trade single window, enabling risk-based inspections, launching an online platform for certification of imported goods and upgrading infrastructure at Jeddah Port.
Insolvency was made easier to resolve by introducing a reorganization procedure and allowing debtors to initiate it, improving voting arrangements in reorganization, improving the continuation of businesses and the treatment of contracts during insolvency proceedings, allowing post commencement credit, and increasing the participation of creditors in the insolvency proceedings.