Iraq dwindles at the bottom of an international ranking for business attractiveness

2022-10-27 03:50

Shafaq News/ Weighed down by poor governance and endemic insecurity, Iraq dwindles at the bottom of the Economist Intelligence Unit's Business Environment Ranking (BER).

BERs illustrate the impact of the pandemic in 2020, the asymmetric recovery in 2021 and the war in Ukraine in 2022—and all the policy changes that these have prompted—on global operating environments.

The BERs measure the attractiveness of the business environment in 82 countries on a quarterly basis, using a standard analytical framework with 91 indicators.

"Our rankings for the fourth quarter of 2022 show that western Europe and North America remain the best places in the world to do business. Asia ranks third, narrowly ahead of eastern Europe, while the Middle East and Africa region marginally outperforms Latin America," the Economist Intelligence Unit (EIU) said in an official report.

"A protracted period of low global oil prices has been followed by a sharp rebound in international oil prices since the start of this year, strengthening the macroeconomic environment in the Middle East region," it said.

High oil prices are enabling oil-producing economies to invest more heavily in technology and infrastructure upgrades.

The region is also benefiting from Europe’s reorientation of its gas supply from Russian pipeline gas to liquefied natural gas suppliers elsewhere, notably in the Gulf and the US. Cuts in capital spending in response to the fiscal deterioration that accompanied the pandemic have constrained the region’s macroeconomic score.

"However, the effect on the business environment has been positive, as countries have been forced to prioritise reforms that support business operations, such as improved frameworks for public-private partnerships, subsidies programmes and foreign investment."

"Poor governance and management of macroeconomic policy, as well as low income per head and limited market opportunities, mean that countries in Africa are generally low down in the BER rankings," it added.

By jumping 11 places, Qatar achieved a record for the most improved country in the Middle East territory. It has implemented a US$220bn investment programme over the past decade, mainly focused on infrastructure. Its BER score has benefited from the expansion of Hamad International Airport, further development of the road network and plans for tourism infrastructure, all accelerated by preparations for hosting the 2022 World Cup (in November-December). The North Field Expansion, a US$30bn natural gas project in the Persian Gulf, will further support business opportunities in 2023-27.

The UAE was another winner, gaining ten places in the rankings.

The score for the Middle East and Africa overall continues to be weighed down by poor governance and endemic insecurity in many parts of the region, including the spillover from the conflicts in Syria, Yemen and Libya, alongside political unrest in a number of countries, including Iraq and Lebanon. The region includes five of the bottom ten countries globally.

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