2023-06-07 12:39:58
18% of the informal activities percentage of the gross product of the countries of the region
Dubai – Al Arabiya.net
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A recent report revealed initiatives and strategies in the GCC countries aimed at reducing the size of shadow economies and enabling small and medium enterprises to contribute to supporting the economy by enhancing their economic and financial inclusion and integration into local economies.
A report issued by the “Arthur D. Little” management consultancy, of which Al Arabiya.net received a copy, indicated that the size of the shadow economies in the GCC countries is remarkably small compared to the global average, as informal businesses and activities represent only 18% of GDP. to the countries of the region.
It is estimated that the activity of shadow economies represents 15% of GDP in Saudi Arabia, 17% in Bahrain, 22% in Kuwait, and 24% in each of the Emirates and Oman, according to a report entitled: “Enabling Inclusive Growth.”
The report confirmed that these percentages are less than the global average of regarding 28%, indicating that the issue of integrating shadow businesses into the official local economies remains a top priority for the GCC states.
The report notes that the GCC countries are taking the initiative to reduce the size of the shadow economy in the Middle East and North Africa region by implementing effective policies and measures that stimulate companies operating in the shadow economy to make tangible contributions to the formal economies.
These measures include improving tax enforcement, supporting small businesses, accelerating the pace of digitization, and enhancing standards of transparency and financial inclusion, through the provision of financial services, and increasing access to credit services.
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