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Saudi Arabia’s ranking fell to 22nd and 55th globally in investor protection and access to credit, according to the 2014 Doing Business report issued by the World Bank and the International Finance Corporation.
The Kingdom’s ranking for access to credit fell from 52nd in 2013 to 55th in 2014, while its ranking on the international list for investor protection fell from 21st in 2013 to 22nd in 2014.
The ease of access to credit is assessed based on several criteria, including «credit information systems, the legal rights of borrowers and lenders under relevant laws, and procedures regarding collateral and bankruptcy.»
The Kingdom ranked 17th globally in the 2012 Investor Protection Index, one of ten indices compiled annually by the World Bank to measure the ease of doing business in 183 countries.
The ”Investor Protection” index measures the ability of applicable rules and regulations to protect minority shareholders against the misuse of corporate assets by board members for personal gain.
These indicators distinguish between three dimensions of investor protection: transparency of related-party transactions (the Scope of Disclosure indicator); accountability for personal gain (the Scope of Accountability of Managers and Board Members indicator); and the ability of shareholders to sue directors and board members for misconduct (Ease of Shareholder Litigation).
These data were compiled based on a survey of attorneys specializing in corporate and securities law, and they are also based on securities regulations and rules, corporate laws, and the principles of civil and judicial procedures worldwide.
According to the overall ranking for 2014, the Kingdom’s ranking fell to 26th globally and second in the Arab world, The Kingdom’s global ranking in the new report fell by four places after it had ranked first in the region and 22nd globally in the 2013 Doing Business report, and it implemented two reforms.
The Doing Business report by the International Finance Corporation and the World Bank ranks 189 countries based on 10 indicators related to government procedures regulating business activities, which measure the time and cost required to complete government procedures and requirements in the areas of starting a business.
as well as obtaining construction permits, connecting to the electricity grid, registering property, accessing credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The World Bank report is considered an important barometer of the business climate in countries and is relied upon by decision-makers and investors to gain an unbiased view of the regulatory environment for business in these countries.
The report shows that a business environment that is both robust and flexible serves as a driver of economic growth, prosperity, and a country’s global competitiveness, which is why policymakers are working to develop policies and measures that encourage entrepreneurship in the local market and attract businesspeople and investors, thereby supporting economic diversification and innovation rates.
The Kingdom had previously ranked 44th globally in terms of enabling factors—specifically, the regulatory framework for the labor and business environment—according to the first edition of the GTC Global Talent Competitiveness Index,In its first edition, published by INSEAD.
In the Global Talent Competitiveness Index, the Kingdom ranked 42nd in terms of global knowledge skills, but it needs to improve in terms of practical and professional skills, where it ranked 55th, It ranked 37th globally in talent development and 44th globally in enabling factors.