The Economist Intelligence Unit (EIU) has released its latest report on the best countries for doing business, and the news is not good for the Middle East and Africa (MEA) region. MEA’s overall score is the lowest of any region, weighed down by poor governance and endemic insecurity, including spillover from conflicts in Syria, Yemen, and Libya, as well as political unrest in countries like Iraq and Lebanon.
The highest-ranked countries in the region are Israel and the Gulf states, with Qatar, Saudi Arabia, and the UAE expected to improve further between 2023-27. Despite weak corporate governance and regulation, poorly trained labour forces, and an over-reliance on hydrocarbons in countries like Angola, Nigeria, and the Gulf states, rates of return can still be high for firms that master the region’s complicated political and regulatory climate.
South Africa was the only country in the MEA region to see a modest rise, up by four spots. However, this improvement reflects a low base given the disruptions to critical public services such as power supply that characterise the current business environment. Bahrain and Kuwait were the biggest losers, falling by nine and six spots, respectively, due to deteriorating market opportunity scores as a consequence of falling global oil prices and a lack of progress on regulations and reforms.
While the MEA region still faces significant challenges, the report highlights the potential for progress with business-friendly reforms and improvements in public-private partnerships and foreign investment. Companies that can navigate the region’s complex landscape could still see high rates of return.
EIU offers deep insight and analysis of the economic and political developments in the increasingly complex global environment; identifying opportunities, trends, and risks on a global and national scale. Formed in 1946, with more than 70 years of experience, it is ideally positioned to be a commentator, interpreter and forecaster on the phenomenon of globalisation as it gathers pace, enabling businesses, financial firms, educational institutions and governments to plan effectively for uncertain futures.
