Publication:
Eliminating Minimum Capital Requirement and Facilitating Business Start-Up in Saudi Arabia

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dc.contributor.authorAl-Awwad, Dr. Awwad
dc.date.accessioned2012-08-13T12:32:40Z
dc.date.available2012-08-13T12:32:40Z
dc.date.issued2007-10
dc.description.abstractWith the 10-by-10 initiative's inception, the Saudi Arabian General Investment Authority (SAGIA) created the National Competitiveness Center (NCC) in June 2006. Monitoring, assessing, and supporting the simplification of the business entry process were among its main roles. The NCC observed in June 2006 that entrepreneurial activity in Saudi Arabia was low. One of the reasons was the fact that the process for starting a business was lengthy exceeding 5 weeks and costly, with one of the highest minimum paid-in capital (MPIC) requirements in the World- US$125,000. Businesses still started and were registered, but only 12,194 were limited liability companies, versus 646,900 sole proprietorships. Starting a limited liability company was simply too costly. Saudi Arabia boldly eliminated the minimum capital requirement, which was 1,057 percent of income per capita. And it was done in four months, reversing the common belief that dropping the minimum capital requirement entails years of legal procedures and debates. The author also cut other start-up formalities, decreasing the number of procedures from 13 to seven. In one year, the country's rank in the ease of starting a business soared from 159 to 36 in doing business 2008. Last but not least, new business registrations jumped 81 percent. The author suggest there were three key factors: (a) disregard the argument that this is the way it was always done, and go for quick wins to create momentum; (b) use a results-based incentive system, with credit for the ones that deliver; and (c) use facts to build coalitions and speed up the process.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/10/9890773/eliminating-minimum-capital-requirement-facilitating-business-start-up-saudi-arabia
dc.identifier.doi10.1596/10642
dc.identifier.urihttps://hdl.handle.net/10986/10642
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesIFC Smart Lessons Brief
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectADVISORY SERVICES
dc.subjectARTICLES OF ASSOCIATION
dc.subjectBANK ACCOUNT
dc.subjectBUSINESS ENTRY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS REGISTRATIONS
dc.subjectBUSINESSES
dc.subjectCAPITAL REQUIREMENT
dc.subjectCHAMBER OF COMMERCE
dc.subjectCIVIL CODE
dc.subjectCOMMERCIAL PAPERS
dc.subjectCOMPANY LAW
dc.subjectCOMPETITIVENESS
dc.subjectCONTRIBUTION
dc.subjectDEPOSIT
dc.subjectEMPLOYER
dc.subjectENTREPRENEUR
dc.subjectENTREPRENEURIAL ACTIVITY
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectINCOME
dc.subjectINCOME TAX
dc.subjectINITIAL CAPITAL
dc.subjectINSURANCE
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectLABOR FORCE
dc.subjectLABOR MARKET
dc.subjectLEGISLATIVE REFORM
dc.subjectLICENSE
dc.subjectLIMITED
dc.subjectLIMITED LIABILITY
dc.subjectLIMITED LIABILITY COMPANIES
dc.subjectLIMITED LIABILITY COMPANY
dc.subjectMEDIUM ENTERPRISES
dc.subjectMIDDLE EAST
dc.subjectMINIMUM CAPITAL REQUIREMENT
dc.subjectMUNICIPALITY
dc.subjectNEW BUSINESS
dc.subjectNEW COMPANY
dc.subjectNEW JOBS
dc.subjectNORTH AFRICA
dc.subjectNOTARY
dc.subjectNOTARY PUBLIC
dc.subjectPROSPERITY
dc.subjectPROTOCOL
dc.subjectRESULTS
dc.subjectSOCIAL INSURANCE
dc.subjectSOLE PROPRIETORSHIPS
dc.subjectSTART-UP
dc.subjectTARGETS
dc.subjectTAX
dc.subjectTREATIES
dc.subjectUNEMPLOYMENT
dc.titleEliminating Minimum Capital Requirement and Facilitating Business Start-Up in Saudi Arabiaen
dspace.entity.typePublication
okr.date.doiregistration2025-04-29T10:15:08.182741Z
okr.doctypePublications & Research::Brief
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/10/9890773/eliminating-minimum-capital-requirement-facilitating-business-start-up-saudi-arabia
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid140001468107637589
okr.identifier.externaldocumentum000333037_20080929021430
okr.identifier.internaldocumentum9890773
okr.identifier.report45660
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2008/09/29/000333037_20080929021430/Rendered/PDF/456600BRI0Box31ia1Starting1Business.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countrySaudi Arabia
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicLaw and Development::Corporate Law
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicPrivate Sector Development::E-Business
okr.unitDoing Business - WB (GIADB)
okr.volume1 of 1
relation.isSeriesOfPublication99147cd6-fa98-4a58-b3e7-81af3f4ffd98
relation.isSeriesOfPublication.latestForDiscovery99147cd6-fa98-4a58-b3e7-81af3f4ffd98
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