In today’s world that sadly continues on through not exactly a thin patch of worldwide traumas, the Arab League’s Arab Administrative Development Organisation as reported by Gulf Daily News of March 14, 2022, has awarded its Arab Government Excellence to Bahrain. It was 5 government institutions that were rewarded for their unified work as per the vision of the country’s monarch.
Bahrain wins five excellence awards
Five Bahraini ministries and government institutions have won awards at a ceremony to honour excellence in governance in the Arab world.
The announcement was made yesterday at a virtual celebration held under the patronage of UAE Vice President, Prime Minister and Dubai Ruler Shaikh Mohammed bin Rashid Al Maktoum in Dubai.
The Arab Government Excellence Award is organised by the Arab League’s Arab Administrative Development Organisation (ARADO), in co-operation with the UAE government.
The Health Ministry won the award for Best Arab Government Project for Developing the Health Sector, the Labour and Social Development Ministry (Best Arab Government Project for Community Development for its “Khatwa” programme for home projects) and the Interior Ministry’s Customs Directorate (Best Arab Government Development Initiative award for its Governance of Economic and Customs Information to Facilitate Trade).
The Information and eGovernment Authority picked up the Best Arab Government Smart App award in recognition of its Tawasul App for the National Suggestion and Complaint system. The Youth and Sports Affairs Ministry was selected for its Elite Project which was chosen as the best Arab government project for empowering the youth.
This achievement comes within the framework of the efforts made by the Bahraini government, led by His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince, Deputy Supreme Commander and Prime Minister, to benefit from the best practices in upgrading the government’s performance to achieve the kingdom’s Economic Vision 2030.
The award aims to promote the culture of institutional excellence among government work teams in Arab countries.
It also seeks to provide positive leadership thinking to adopt the approach of excellence and innovation in a way that enhances the ability of the governments to deal with the tasks assigned to them through continuous development of the work system and its methods.
New figures from GlobalData show that the construction sector in the Middle East and North Africa (MENA) region is healthier than in most other regions and is continuing to improve.
The MENA region has received an overall score of 0.87 in GlobalData’s January 2022 Construction Project Momentum Index, which provides an assessment of the health of the construction project pipeline at all stages of development from announcement through to completion.
Every construction project in GlobalData’s database is assigned a score of between 5 and -5 based on its current progress, a score that is continually updated over time. These are then weighted by the value of each project in order to arrive at overall scores for countries, regions and sectors.
That score puts the MENA region in third place out of 11 regions, and is an increase on its score from December 2021 (0.62) when it ranked in seventh place.
One reason for the region’s relatively good performance in the index is its energy and utilities sector, which scores 1.21, putting it in first place out of 11 regions worldwide.
The MENA region’s institutional sector, by contrast, has performed somewhat worse, with a score of 0.48 (putting it in ninth place globally).
Within the MENA region, construction projects are proceeding with fewest obstacles in Qatar, which scores 2.15 in the index. The situation in Oman, however, is somewhat less positive, with a score of -0.02.
The improving health of the construction pipeline in the MENA region is partly due to the resolution of issues in the region’s energy and utilities sector, which has seen its score in GlobalData’s Construction Project Momentum Index move from 0.51 in December 2021 to 1.21 in January 2022.
The construction sector is also seeing fewer and fewer problems in Qatar, which has seen its score on the index go from 1.07 in December 2021 to 2.15 in January 2022.
The Construction Project Momentum Index
GlobalData’s Construction Project Momentum Index is based on analysis of thousands of individual construction projects around the world.
Each project is continually monitored for updates, with updates indicating progress increasing the project’s score, while updates indicating delays or cancellations reduce the score. The score always sits between 5, the best possible score, and -5, the worst.
The scores for individual projects are then weighted based on their significance in order to create combined indices for each region or sector.
Events that can reduce a project’s score include the project being cancelled or put on hold, delays, the rejection of applications or tender bids, or the reduction of the project’s scope.
Events that can increase a project’s score in the index, by contrast, include the completion or commencement of construction, the awarding of major contracts, or the approval of applications.
Ben van der Merwe is a data journalist at GlobalData Media, specialising in FDI. He joined from the Reach Data Unit, where he was a fellow of the Google News Initiative. His investigative journalism has previously appeared in the Observer, VICE, Private Eye and New Statesman.
The top featured image is for illustration and is credit to InvestorMonitor
Published by The Peninsula on how an emirate of the Gulf region does have a vision but how after it has since the early 1990s heavily invested in promoting its image through sports, it is getting ready to facing other challenges. Not only has it fought hard to win support for its 2022 World Cup hosting, it is now trying to further use its soft power to perhaps conquer the world. But would Qatar’s sports sector eying post-2022 horizon keep it alive and well? And if Qatar can silence critics with a strong tournament, an Olympic bid could be next; why not?
Qatar’s sports sector eyes post-2022 horizon
Doha: Interest around development of sports in Qatar has soared globally in the runup to FIFA World Cup Qatar 2022 and the sector has become the focus of global investors. With $6.5bn budgeted for the event, what opportunities does the wealthiest Gulf state offer after the much-awaited football celebration?
The Investment Promotion Agency Qatar (IPA Qatar) delves into the growth prospects of the sports industry and showcases the multi-sectoral opportunities on offer. Qatar’s Booming Sports Industry.
Over the last decade, the Middle East has hosted several key tournaments — Asian Football Confederation Cup, World Men’s Handball Championship and IAAF World Athletics Championships among others. This has helped establish the region as a global sporting destination. A PwC survey shows that the sports industry in the Middle East is expected to grow 8.7 percent in three to five years, while the expected growth of global sports business is not expected to exceed 3 percent in the same period. With Qatar hosting more than 50 international events in 2021, the survey points out that the sports industry in the Middle East is expected to fully recover from the pandemic in 2022.
The region’s sports industry has untapped potential. The first FIFA World Cup to be held in the Arab region is a catalysing force for unlocking that potential and “propelling the beautiful game”. Qatar has pursued a bold development strategy and is at the vanguard of countries with advanced sports infrastructure. In the “Ranking of Sports Cities 2020” by Burson Cohn & Wolfe, which evaluates the performance of cities in hosting sporting events based on digital landscape analysis, sports media, and international federations surveys, Doha has made it to the top 50 global cities and the first in the Arab World. Similarly, the “Global Sports Impact (GSI) Nations Index” by the Sports Market Intelligence’s company Sportcal ranked Qatar first in GCC and among the top 20 worldwide.
With an average growth of 4.5 percent over 11 years, between 2010 to 2020, Qatar’s GDP has grown steadily since it was awarded the right to host the World Cup in 2010, according to the International Monetary Fund (IMF). With economic diversification, the sports industry is poised for further growth. The Ministry of Commerce and Industry has identified 83 commercial and investment opportunities for the private sector until 2023, spanning event management and promotion, sport development, venue construction, sporting goods and equipment, sports commercialisation, sports tourism, and venue operations.
Esports Adds Momentum
While the pandemic has challenged economies, it has spotlighted the indispensability of technology integration and digital transformation. Sports is no exception. The global Esports market is expected to grow with a CAGR (2019 to 2024) of +8.7% to reach $218.7 billion in 2024. In the Middle East, Esports represents a natural fit for the region, where the majority of the population is young and internet-savvy.
It also holds promising growth potential as governments continue to invest in sport and digital transformation as a way to diversify their economies. A recent PwC survey shows that Saudi Arabia ranks among the top 20 countries for games revenue at $716m, with the UAE generating $313m and Egypt $287m.
Qatar has a strong starting point with advanced ICT and adaptability, ranked 8th in the Global Competitiveness Index’s “ICT Adoption” pillar. With the world’s 1st commercially available 5G network and with 99 percent internet penetration, the country continues to support investors to unfold opportunities through its licensing platforms such as Qatar Financial Centre and Qatar Sports Tech.
Sports healthcare to drive more opportunities
The global sports medicine and physiotherapy market was estimated at $8.2bn in 2020 and is projected to grow at a CAGR of 8.83 percent to reach $14.9bn by 2027. Qatar boasts futuristic sports medicine facilities. It is home to Aspetar – Qatar Orthopaedic and Sports Medicine Hospital – which is the first such facility in the region and is accredited by FIFA as a sports medicine centre of excellence.
Boasting some of the world’s finest sports infrastructure Qatar has cemented its position as a global sports destination.
New sports legacy
Hosting the FIFA World Cup has helped Qatar draw investment. The country has introduced measures that will not only deliver an unparalleled World Cup experience but create opportunities. The mega projects — from a railway and airport expansion to construction projects worth $200bn will boost business and draw investment in 2022 and beyond.
With over a million fans travelling to the country, tourism and hospitality will benefit immensely from preparation for sporting events. Describing Qatar’s economy post-World Cup 2022, Nasser Al Khater, CEO of FIFA World Cup Qatar 2022, said, “The country’s focus will shift from infrastructure development to tourism and will likely go in the direction of Russia post-World Cup 2018”. The tournament added $14bn to the Russian economy, and the benefits are still being felt.
Qatar is poised to spur development. The country’s vision and futuristic infrastructure have not only accelerated the development of sports industry, but also bolstered growth potential of different sectors.
MENA region’s GDP to surge by over 3x by 2050 according to Gulf Capital White Paper as reported by SME10X . In effect, the oil and gas trade revenues allow considerable financial power and a strategic position on the international scene for those exporting countries but also a source of vulnerability for their economies, especially in the aftermath of not only this recent COP26 but to also the ensuing COPs Let us nevertheless look at this prediction of this white paper.
MENA region’s GDP to surge by over 3x by 2050
A New report quantifies unprecedented growth opportunities across “Ascending Asia” which is set to drive 40 percent of global consumption by 2040.
The study, jointly published by Gulf Capital and Dr Parag Khanna, Founder and Managing Partner of FutureMap, reveals that the MENA region is expected to increase its GDP by over 3x by 2050, the ASEAN region is expected to grow by 3.7x, and India by 5x. This turbo-charged growth is in sharp contrast to the projected slower growth of the European and US economies at only 1.5x and 1.8x respectively for the same period.
Within greater Asia, the GCC and Southeast Asia are two ascending regions with rising youth populations where demographic and technological shifts will generate a significant expansion of the services sectors. Across these societies, rising affluence and consumption will drive business expansion, corporate profits, and higher valuations. Longer-term reforms including capital account liberalization and accelerated privatization will unlock fresh investment inflows into new Asian listings.
Dr Karim El Solh, Co-Founder and Chief Executive Officer of Gulf Capital, said: “The unprecedented growth opportunities presented by the emergence of ‘Ascending Asia’ have never been greater. The strong macro-economic fundamentals, a growing middle class and youth population, increasing GDP per capita, rapid adoption of technology, and growing intra-regional trade and investment flows will only strengthen the case for the Asian economies. We are fortunate to be investing and operating across Ascending Asia from the GCC to the Near East and Southeast Asia, where we have acquired a large number of companies in the past.”
Additionally, East and West Asia’s deepening trade and investment networks indicate that capital, companies, and consumers will increasingly traverse the Indian Ocean and strengthen ties along the new Silk Roads, stitching the region into a whole greater than the sum of its parts.
El Solh concluded, “Against the backdrop of the evolving megatrends of deepening trade links, sizable FDI flows, greater political cooperation, and the fastest growing consumer sector, Gulf Capital is ideally poised to capitalize on this once in a generation cross-border opportunity. It is our firm belief that if investors want to capture rapid growth over the next three decades, they need significant exposure to the fastest growing industries across Ascending Asia.”
The following story is about how one country responded to disappointing Doing Business scores to reform its rules and regulations for its own benefit. Would discontinuation of this instrument mean its non-availability to others?
The above image is for illustration and is of iStock.
How one country responded to disappointing Doing Business scores
On September 16, 2021, the World Bank discontinued the Doing Business (DB) report, one of its flagship diagnostic products. This action follows what the World Bank called “a series of reviews and audits of the report and its methodology.”
The DB report, published each year since 2004, was one of the World Bank’s most influential reports in recent years. Every autumn, people around the world would wait eagerly and, in some cases, with some trepidation, for its release. Over time, the reports increasingly attracted the attention of heads of governments who wanted to see their countries do well in the rankings.
When the DB report came out in 2015, the Indian government was disappointed. Soon after taking office in 2014, Prime Minister Modi announced his government’s intention to bring India’s ranking into the top 50 within a few years. Several reforms were carried out in the following months, which the Indian government hoped would put India on a trajectory of rapid annual improvements in the ranking. The 2015 report (officially called “Doing Business in 2016”, since the World Bank always gave the report a forward-looking title) indicated only a modest improvement in India’s rank, from 142 to 130.
The World Bank explained to the Indian government that while several reforms may have been enacted on paper, Indian businesses did not report feeling an impact on the ground. Some responded, “What reforms?”, while others heard about the reforms but had not seen improvement on the ground. The reforms could not be officially recognized until the private sector reported real improvements. The World Bank suggested that the government put in place feedback loops to provide real-time information from businesses on whether the reforms were being well implemented. The government, instead of whining further about the scores, started working on such feedback loops. For several regulatory reforms covered by the DB indicators, it started surveying businesses on whether they felt any reform impact on the ground.
From February 2016 to May 2017, the government carried out a series of business-to-government (B2G) feedback exercises and focus group discussions (FGDs) on how much the businesses were aware of the enacted reforms and their views on the quality of reform implementation. Nine B2G feedback exercises were carried out. Topics covered construction permits (three surveys each in Delhi and Mumbai), starting a business (two surveys), and trading across borders.
The exercises revealed several implementation gaps, some major and some minor. An example is construction permitting. A business survey carried out in Delhi in March 2016 revealed the following implementation issues: a) significant lack of agency coordination—architects still need to obtain approvals from up to 10 different agencies; b) some facilities for online payment were not properly implemented and certain fees were still paid manually; c) very low awareness of the online system among users; d) no way to track the status of an application; e) information lacking on documentary and other requirements. In other words, the reforms had not gone far enough to have impact on the ground.
This feedback exercise helped generate several recommendations to address the deficiencies. These were provided to the Municipal Corporation of Delhi (MCD), and most were acted upon. Follow-up feedback exercises in October 2016 and February 2017 validated these actions while generating additional recommendations for further improvement. A similar effort was made in Mumbai.
The impact of these efforts can be seen in the trends in India’s performance on the “Dealing with Construction Permits” indicator. In the Doing Business in 2016 report, India’s ranked 183 on this indicator. Thirty-three procedures were involved taking 191 days according to the indicators. Two years later, the number of days had come down to 144 with a modest improvement in the rank to 180. The more substantial improvements came the following year when the DB report published in October 2018 indicated a reduction in the number of procedures and days required to 18 and 95 respectively. Still a long way to go but enough to propel India’s ranking on this indicator to 52. While all this improvement cannot be attributed to the feedback exercises alone, it is possible to trace a substantial part of this improvement to actions taken as a result of these exercises.
The Indian government also recognized that the DB indicators did not cover many regulatory interfaces that created problems for businesses and that the indicator measures were based on conditions in just two cities, i.e., New Delhi and Mumbai. Thus, in parallel to its efforts on the DB front, the Indian government embarked on an ambitious regulatory reform program at the state-level covering all states and union territories in the country. A long list of regulatory reforms was identified covering several regulatory areas, and state governments were instructed to carry out the reforms. Called the Business Reforms Action Plan, the program started in 2015.
Progress was monitored through annual indicators that ranked states according to their performance on implementing the reforms. The first such indicators, published in 2015, did not take into account business feedback. However, seeing the usefulness of the feedback exercises carried out as part of the DB program, the government changed the state-level reform indicators in 2018 by making a substantial part of the indicator scores dependent on business feedback.
The powerful demonstration effect of such feedback exercises had touched individual state governments too. In 2018, four state governments, Chhattisgarh, Jharkhand, Orissa, and Rajasthan, expressed an interest in knowing why there was poor uptake of self-certification and third-party certification options provided in business inspection reforms carried out by these states. At their request, the World Bank carried out an independent feedback exercise that could help design corrective actions to improve uptake.
The Indian experience from 2016 onward is a good example of what the DB indicators can lead to if governments use them well. First, the government refocused its attention from reforms on paper to reforms on the ground. Second, it recognized the importance of consulting with the private sector, which knows best where the shoe pinched, and designed corrective actions based on the feedback. This iterative process helped improve reform implementation quality. Third, the government recognized that while the DB indicators were useful, they were not adequate to diagnose the myriad of regulatory issues that businesses all over India faced. Thus, the government embarked on a more comprehensive, state-level, reform program, and, inspired by the power of indicators, underpinned this program by a set of performance indicators. Finally, once the pioneering DB-related feedback exercises proved useful, they created a demonstration effect, first within the central government, which replicated such exercises for the state-level reform program, and then on individual state governments.
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