Economy, Business And Markets

Iran's National Business Environment Index Improves

National Business Environment Index ImprovesNational Business Environment Index Improves

Iran’s National Business Environment Index in last winter (Dec. 21, 2016-March 20, 2017) stood at 5.83, registering a 0.03 unit or 0.6% improvement compared with autumn (Sept. 23-Dec. 20,2016), according to a recent report published by Iran Chamber of Commerce, Industries, Mines and Agriculture.

The index calculated by ICCIMA seeks to measure the business friendliness of Iran’s economy, with 10 indicating the worst grade. The lower the figure, the better the business environment.

The chamber also measures the index for each of the 31 Iranian provinces. The provinces of Hamedan with 5.03, East Azarbaijan with 5.04 and West Azarbaijan with 5.13 had the best scores while Golestan with 6.87, Ardebil with 6.59 and Qom with 6.35 had the worst, the Persian daily Hamshahri reported.

The chamber also breaks down the index based on economic sectors. Water supply, waste management, sewage and water refinement had the best scores while real estate and housing had the worst.

Economic players who took part in the ICCIMA survey believe that difficulties in getting banking facilities were the main stumbling block in the way of their business while easy access to electricity was the most prominent factor in improving the business environment in the sectors of agriculture, industries and services.

The ICCIMA index is fashioned after World Bank’s “Ease of Doing Business” index.

According to WB’s 2017 report (the latest report available), which analyzed business environments worldwide by breaking them down into 10 broad categories in accordance with the business life cycle from the start to the end, Iran was ranked 120th out of 190 economies in the Ease of Doing Business ranking, down three notches from its 117th place last year.

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

In terms of “protecting minority investors” and “trading across borders”, Iran improved one notch to rank 165th and 170th respectively.

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

The country also slid from 90th to 94th place in “getting electricity”, from 85th to 86th place 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 status remained unchanged in “dealing with construction permits” category from last year’s 27th.


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