Economy, Business And Markets

Iran’s “Distance to Frontier” Score Improves in WB’s Business Report

Iran’s “Distance to Frontier” Score Improves in WB’s Business ReportIran’s “Distance to Frontier” Score Improves in WB’s Business Report

In the latest report released by the World Bank titled “Doing Business 2017: Equal Opportunity for All”, Iran shows an improvement of 0.18 percentage points in distance to frontier score, as it scored 57.26 compared to the previous year’s 57.08 percentage points.

DTF measures the distance of each economy to the “frontier”, which represents the best performance observed on each of the indicators across all economies.

Iran is ranked 120th out of 190 economies in the WB’s Ease of Doing Business ranking, down three notches from its 117th place last year.

According to the organization’s annual ranking report, which analyzes countries’ business environments by breaking them down into 10 broad categories in accordance with the business life cycle from start to closure, Iran received 57.26 points in total.

The report checks legal and administrative rules and practices, as well as feedback from experts and businessmen from related fields and is designed to provide the best practice benchmarks that can be followed by developing countries.

Broken down by sector, Iran moved up the rating ladder in two sectors, lost ground in seven areas and remained unchanged in one category.

In terms of ‘protecting minority investors’ and ‘trading across borders’, Iran improved one step to rank 165 and 170 respectively.

On the downside, however, Tehran’s ranking in ‘starting a business’ stood at 102 of all countries surveyed, down five steps compared to 2016.

The country also slid from 90th place to 94th in ‘getting electricity’, from 85th to 86th in registering property, from 97th to 101st in ‘getting credit’ and from 99th to 100th in ‘paying taxes’.

Iran’s ranking dropped in ‘enforcing contracts’ from 69th in 2016 to 70th this year and in ‘resolving insolvency’ from 155th to 156th. Iran’s place remained unchanged in ‘dealing with construction permits’ sector from last year’s 27th.

The highest-ranked country for ease of doing business was New Zealand, while Somalia came in last.

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