Doing Business Report - Economy Profile Djibouti 2018

Economy Profile
Djibouti
Doing Business 2018 Djibouti
Economy Pro le of Djibouti

Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and
permits safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and
the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework
for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and
selected cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations
applying to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides
quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings
of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on
the ease of doing business, it does present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and
over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business
climate of each economy.
In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent
cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend
reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other
cities in the economy or region and with the 190 economies that Doing Business has ranked.
The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11
indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except
for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,
Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second
largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The
project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide
an objective basis for understanding and improving the regulatory environment for business around the world. Page 2
for insolvency
Doing Business
Labor market 2018
regulation Djibouti
Flexibility in employment regulation and aspects of job quality
About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and
selected cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations
applying to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides
quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving
insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings
of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on
the ease of doing business, it does present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and
over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for
reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business
climate of each economy.
In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent
cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend
reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other
cities in the economy or region and with the 190 economies that Doing Business has ranked.
The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11
indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except
for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan,
Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second
largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The
project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide
an objective basis for understanding and improving the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best
performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s
distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the
frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the
aggregate distance to frontier scores, rounded to two decimals.
More about Doing Business (PDF, 5MB)
Ease of Doing Business in Middle East & North DB 2018 Rank

Region 190 1
Africa
Djibouti
Income Category Lower middle income 154
DB 2018 Distance to Frontier (DTF)
Population 942,333
0 100
GNI Per Capita (US$) 1,908 49.58
City Covered Djibouti Ville
0 100
67.20: Oman (Rank: 71)
56.72: Regional Average (Middle East & North Africa)
56.22: Egypt, Arab Rep. (Rank: 128)
49.58: Djibouti (Rank: 154)
47.77: Ethiopia (Rank: 161) Page 3

aggregate distance to frontier scores, rounded to two decimals.
More
Doingabout Doing Business
Business 2018 (PDF, 5MB)
Djibouti
Ease of Doing Business in Middle East & North DB 2018 Rank

Region 190 1
Africa
Djibouti
Income Category Lower middle income 154
Population 942,333
0 100
GNI Per Capita (US$) 1,908 49.58
0 100
67.20: Oman (Rank: 71)
47.77: Ethiopia (Rank: 161)
22.87: Eritrea (Rank: 189)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of
the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0
represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Djibouti
28
55
73
84
82 96
Rank
108
109 115
136
159
163 169 168
175
183
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Djibouti
100
83.38
80
68.48 68.91
60
DTF
51.67 51.87
48.32
40.75 42.65
40 34.78
20
5.00
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
Business Construction Change:+1.24 Change:+1.31 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:+0.12
Change:+11.95 Permits Change:+21.67 Change:0.00
Change:+3.61
Starting a Business Page 4

Business Construction Change:+1.24 Change:+1.31 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:+0.12
Change:+11.95 Permits Change:+21.67 Change:0.00
Change:+3.61
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized
limited liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically
owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and
employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting
a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned
by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores
obtained for each of the component indicators.
The latest round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and operate a To make the data comparable across economies, several assumptions
company (number) about the business and the procedures are used. It is assumed that any
required information is readily available and that the entrepreneur will pay
Pre-registration (for example, name verification
no bribes.
or reservation, notarization)
Registration in economy’s largest business city The business:
- Is a limited liability company (or its legal equivalent). If there is more than
Post-registration (for example, social security
one type of limited liability company in the economy, the most common
registration, company seal)
among domestic rms is chosen. Information on the most common form is
Obtaining approval from spouse to start business
obtained from incorporation lawyers or the statistical o ce.
or leave home to register company
- Operates in the economy’s largest business city and the entire o ce
Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11
can impact company registration, company economies the data are also collected for the second largest business city.
operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal
identity card entity; and has a start-up capital of 10 times income per capita and has a
Time required to complete each procedure turnover of at least 100 times income per capita.
(calendar days) - Performs general industrial or commercial activities, such as the
production or sale of goods or services to the public. The business does
Does not include time spent gathering not perform foreign trade activities and does not handle products subject
information to a special tax regime, for example, liquor or tobacco. It does not use
Each procedure starts on a separate day (2 heavily polluting production processes.
procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real
Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent
as ½ day to 1 times income per capita.
Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts.
document is received - Has at least 10 and up to 50 employees one month after the
commencement of operations, all of whom are domestic nationals.
No prior contact with officials
- Has a company deed 10 pages long.
Cost required to complete each procedure (% of
The owners:
income per capita)
- Have reached the legal age of majority. If there is no legal age of majority,
Official costs only, no bribes they are assumed to be 30 years old.
No professional fees unless services required by - Are sane, competent, in good health and have no criminal record.
law or commonly used in practice - Are married and the marriage is monogamous and registered with the
authorities.
Paid-in minimum capital (% of income per capita)
- Where the answer di ers according to the legal system applicable to the
Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there
before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the
incorporation majority of the population.
Standardized Company
Page 5
Legal form Limited Liability Company
incorporation majority of the population.
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement DJF 0
Middle East & OECD high

Indicator Djibouti North Africa income Overall Best Performer
Procedure – Men (number) 7 7.7 4.9 1.00 (New Zealand)
Time – Men (days) 14 18.6 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 35.2 18.7 3.1 0.00 (United Kingdom)
Procedure – Women (number) 7 8.4 4.9 1.00 (New Zealand)
Time – Women (days) 14 19.3 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 35.2 18.7 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 9.9 8.7 0.00 (113 Economies)
Figure – Starting a Business in Djibouti and comparator economies – Ranking and DTF
0 100
92.85: Oman (Rank: 31)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Starting a Business in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
14 20
12
Cost (% of income per capita)
15
10
Time (days)
8
10
6
4 Page 6
5
starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Starting a Business in Djibouti – Procedure, Time and Cost
14 20
12

15
10
Time (days)
8
10
6
4
5
0 0
1 2 3 4 5 6 *7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for
men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below.
Details – Starting a Business in Djibouti – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Deposit the initial capital at the bank and obtain a receipt 2 days no charge
Agency : Bank
The bank must check the origin of the funds and the purpose of the initial
capital. The parties must submit a document stating their intent to start a
new business. If during the company’s life the capital should change, the
company’s registrar must be noti ed.
2 Draft the company's articles of association with a lawyer 3 days DJF 10,000
Agency : Notary
There is no legal obligation to draft the company statutes with a lawyer and
since February 2014, statute templates are available online at the ODPIC
website (www.odpic.info). However, most entrepreneurs still draft the
company statutes with a lawyer.
Lawyers charge approximately FCFA 10,000 to draft the statutes.
When the statutes are drafted by a notary, the average cost is 100,000 FCFA.
3 Register articles of association with the Direction des Impôts 3 days on average DJF 50 000 for a
Agency : Service des Impots capital of less than
DJF 10 millions + DJF
All new companies must register statutes with the Direction des Impôts.
1000 per page stamp
duties (10 pages).
4 Reserve the company name, register with the Companies Registry and 1 day DJF 18,000
publish the notice of commencement of activity registration fees
Page 7
Agency : ODPIC (immatriculation),
Details – Starting a Business in Djibouti – Procedure, Time and Cost
1 Deposit the initial capital at the bank and obtain a receipt 2 days no charge
Agency : Bank
The bank must check the origin of the funds and the purpose of the initial
capital. The parties must submit a document stating their intent to start a
new business. If during the company’s life the capital should change, the
company’s registrar must be noti ed.
2 Draft the company's articles of association with a lawyer 3 days DJF 10,000
Agency : Notary
There is no legal obligation to draft the company statutes with a lawyer and
since February 2014, statute templates are available online at the ODPIC
website (www.odpic.info). However, most entrepreneurs still draft the
company statutes with a lawyer.
Lawyers charge approximately FCFA 10,000 to draft the statutes.
When the statutes are drafted by a notary, the average cost is 100,000 FCFA.
3 Register articles of association with the Direction des Impôts 3 days on average DJF 50 000 for a
Agency : Service des Impots capital of less than
DJF 10 millions + DJF
All new companies must register statutes with the Direction des Impôts.
1000 per page stamp
duties (10 pages).
4 Reserve the company name, register with the Companies Registry and 1 day DJF 18,000
publish the notice of commencement of activity registration fees
Agency : ODPIC (immatriculation),
DJF 18,000 for the
In order to obtain the name certi cate (certi cat negatif) and register with
publication and DJF
the Companies Registry, at the O ce djiboutien de la propriété Industrielle
5000 name
et commerciale (ODPIC), the following documents are required:
reservation
- forms CN1 and RC1
- 2 copies of the representative’s power of attorney
- 2 certi ed copies of the articles of association
- 2 copies of the bank deposit receipt
- 2 sworn statement copies or 2 copies of the criminal record.
The ODPIC is also in charge of the publication of the notice of

commencement of activity in the newspaper La Nation.
5 Register for taxes and obtain professional license (patente) 2 days no charge
Agency : Tax administration
Entrepreneurs must go to the Service des Patentes to obtain a license, using

the registration number obtained at the registrar. This registration also
serves as tax registration.
Companies from class 5 to 8 are exempted from paying the professional

license fees during the rst three years of the company.
6 Create a company seal, letterhead and books 3 days DJF 2,000 - 3,000 (for
Agency : Seal-making shop seal and letterhead)
+ DJF 5,000 - 7,000
Creating a company seal, letterhead and books can be done at the Seal- Page 8
(books)
maker for DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books).
Companies from class 5 to 8 are exempted from paying the professional
Doing license fees during
Business 2018 the rst three years of the company.
Djibouti
6 Create a company seal, letterhead and books 3 days DJF 2,000 - 3,000 (for
Agency : Seal-making shop seal and letterhead)
+ DJF 5,000 - 7,000
Creating a company seal, letterhead and books can be done at the Seal-
(books)
maker for DJF 2000 - 3000 (for seal and letterhead) + DJF 5000 - 7000 (books).
7 Register employees with the Caisse Nationale de la Sécurité Sociale 1 day no charge
Agency : Caisse Nationale de la Sécurité Sociale (simultaneous with
previous
The Company must register and register each employee to the Social
procedure)
Security.
Applies to women only.

Takes place simultaneously with previous procedure.
Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,
submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In
addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of
building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more
information
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions
about the construction company, the warehouse project and the utility
Submitting all relevant documents and obtaining
connections are used.
all necessary clearances, licenses, permits and
certificates The construction company (BuildCo):
Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the
receiving all necessary inspections economy’s largest business city. For 11 economies the data are also
collected for the second largest business city.
Obtaining utility connections for water and
- Is 100% domestically and privately owned; has ve owners, none of whom
sewerage
is a legal entity. Has a licensed architect and a licensed engineer, both
Registering and selling the warehouse after its
registered with the local association of architects or engineers. BuildCo is
completion
not assumed to have any other employees who are technical or licensed
Time required to complete each procedure experts, such as geological or topographical experts.
(calendar days) - Owns the land on which the warehouse will be built and will sell the
warehouse upon its completion.
Does not include time spent gathering
information
The warehouse:
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or
though procedures that can be fully completed
stationery.
online are an exception to this rule
- Will have two stories, both above ground, with a total constructed area of
Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will
document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of
No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned
by BuildCo, and the warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a
warehouse value)
licensed architect. If preparation of the plans requires such steps as
Official costs only, no bribes obtaining further documentation or getting prior approvals from external
Building quality control index (0-15) agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative
Sum of the scores of six component indices: and regulatory requirements).
Quality of building regulations (0-2)
The water and sewerage connections: Page 9
Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer
Applies to women only.
Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits,
submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In
addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of
building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more
information
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions
about the construction company, the warehouse project and the utility
connections are used.
all necessary clearances, licenses, permits and
certificates The construction company (BuildCo):
Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the
receiving all necessary inspections economy’s largest business city. For 11 economies the data are also
collected for the second largest business city.
Obtaining utility connections for water and
- Is 100% domestically and privately owned; has ve owners, none of whom
sewerage
is a legal entity. Has a licensed architect and a licensed engineer, both
Registering and selling the warehouse after its
registered with the local association of architects or engineers. BuildCo is
completion
not assumed to have any other employees who are technical or licensed
Time required to complete each procedure experts, such as geological or topographical experts.
(calendar days) - Owns the land on which the warehouse will be built and will sell the
warehouse upon its completion.
information
The warehouse:
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or
though procedures that can be fully completed
stationery.
online are an exception to this rule
- Will have two stories, both above ground, with a total constructed area of
Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will
document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of
No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned
by BuildCo, and the warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a
warehouse value)
licensed architect. If preparation of the plans requires such steps as
Official costs only, no bribes obtaining further documentation or getting prior approvals from external
Building quality control index (0-15) agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative
Sum of the scores of six component indices: and regulatory requirements).
Quality of building regulations (0-2)
The water and sewerage connections:
Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer
Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole
Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the
smallest size available will be installed or built.
Liability and insurance regimes (0-2)
- Will have an average water use of 662 liters (175 gallons) a day and an
Professional certifications (0-4)
average wastewater ow of 568 liters (150 gallons) a day. Will have a peak
water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of
1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater ow
throughout the year; will be 1 inch in diameter for the water connection
and 4 inches in diameter for the sewerage connection.
Standardized Warehouse Page 10

and 4 inches in diameter for the sewerage connection.
Standardized Warehouse
Estimated value of warehouse DJF 16,957,260.40

Procedures (number) 17 16.2 12.5 7.00 (Denmark)
Time (days) 111 132.1 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 5.4 4.3 1.6 0.10 (5 Economies)
Building quality control index (0-15) 11.0 11.8 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Djibouti and comparator economies – Ranking and DTF
0 100
72.15: Oman (Rank: 60)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier
scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the
component indicators.
Figure – Dealing with Construction Permits in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
100
2.5
Cost (% of warehouse value)
80
2
Time (days)
60
1.5
40
1
20 0.5
0 0
1 2 3 4 5 6 7 8 9 10 11 12 * 13 * 14 * 15 16 * 17
Procedures (number)
Page 11
component indicators.
Figure – Dealing with Construction Permits in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
100
2.5
Cost (% of warehouse value)

80
2
Time (days)
60
1.5
40
1
20 0.5
0 0
1 2 3 4 5 6 7 8 9 10 11 12 * 13 * 14 * 15 16 * 17
Procedures (number)
Figure – Dealing with Construction Permits in Djibouti and comparator economies – Measure of Quality
16
14.0
14
11.8
12 11.0 11.0
Index score
10
8 7.0
6
4
2
0
no practice
Djibouti Egypt, Arab Rep. Eritrea Ethiopia Oman Middle East & North Africa
Details – Dealing with Construction Permits in Djibouti – Procedure, Time and Cost
1 Obtain lot plan and a certi cate of registration 7 days no charge

Agency : Cadastre - Direction des Domaines et Conservation foncière
BuildCo must obtain a certi ed zoning map and a certi cate of registration in
order to apply for a permis de remblai.
2 Apply and obtain a "permis de remblai" (embankment) at the Direction 7 days no charge
de l'Habitat et l'Urbanisme
Agency : Department of Housing and Urban Development (Direction de
l'Habitat et l'Urbanisme)
To apply and obtain an embankment permit, BuildCo must submit:

• A letter Page 12
Details – Dealing with Construction Permits in Djibouti – Procedure, Time and Cost
1 Obtain lot plan and a certi cate of registration 7 days no charge

Agency : Cadastre - Direction des Domaines et Conservation foncière
BuildCo must obtain a certi ed zoning map and a certi cate of registration in
order to apply for a permis de remblai.
2 Apply and obtain a "permis de remblai" (embankment) at the Direction 7 days no charge
de l'Habitat et l'Urbanisme
Agency : Department of Housing and Urban Development (Direction de
l'Habitat et l'Urbanisme)
To apply and obtain an embankment permit, BuildCo must submit:

• A letter
• A registration certi cate issued by the Direction des Domaines et de la
Conservation Fonciere
• A location plan/urbanisme plan issued by the cadastre service at the
Direction des Domaines et de la Conservation Fonciere
Upon this request, the Direction de l'Habitat et l'Urbanisme will issue a

"permis de remblai" and its volume.
3 Apply for the certi cate of compliance for embankment 1 day no charge
Agency : Direction de l'Habitat et l'Urbanisme
Once the works for the embankment are authorized, BuildCo must request
the certi cate of compliance from the Direction de l'Habitat et l'Urbanisme
(DHU). In order to do so, BuildCo must le a copy of the permis de remblai
and an application letter.
DHU will inspect the site to verify that the speci cations for the embankment
were respected. If satis ed, the request for a certi cate of compliance is
transmitted to the Laboratoire Central du Bâtiment et de l'Equipement
(LCBE). LCBE will verify the compactness of the soil.
4 Receive inspection to verify the compactness of the embankment from 1 day DJF 90,000
the LBCE
Agency : LBCE- Laboratoire Central du Bâtiment et de l'Equipement
The LBCE -- Laboratoire Central du Bâtiment et de l'Equipement -- will inspect

the embankment. The cost that LBCE o ers for a test of compactness is DJF
6,000.00 for every 200 sq. m. at a depth of 30 cm.
It is assumed that BuildCo will request a depth of 90 cm. Therefore for a plot
of land of 929 sq. m. and a compactness of 0.9 m, the cost paid by BuildCo's
would be land (DJF 6,000.00 * (5 * 3)) = DJF 90,000.00.
If LBCE is satis ed that the compactness is adequate, they will transmit the
signed request to DHU for the issuance of the certi cate of compliance for
the embankment.
5 Obtain certi cate of compliance for the embankment (certi cat de 14 days no charge
conformite de remblai)
Once the signed document from LBCE is received, the Direction de l'Habitat Page 13
et l'Urbanisme will issue the certi cate of compliance (certi cat de
signed request to DHU for the issuance of the certi cate of compliance for
Doing the embankment.
Business 2018 Djibouti
5 Obtain certi cate of compliance for the embankment (certi cat de 14 days no charge
conformite de remblai)
Once the signed document from LBCE is received, the Direction de l'Habitat
et l'Urbanisme will issue the certi cate of compliance (certi cat de
conformité de remblai) for BuildCo.
6 Request and obtain nal ground plans (plan de masse cadastral) 7 days DJF 83,610
Agency : Sous Direction de la Conservation Foncière (de la Direction des
Domaines et de la Conservation Foncière)
After obtaining the permit and certi cate of compliance for the
embankment, BuildCo must request and obtain the nal ground plans at the
Sous Direction de la Conservation Foncière (de la Direction des Domaines et
de la Conservation Foncière). A tax on embankment must be paid: DJF 100.00
per cubic meter.
This map de nes the boundaries of the land and must be attached to the
application for the building permit, or else the application will not be
accepted by the DHU. Sub-Directorate of Lands and Land Conservation will
identify a date to issue the Plan de Masse Cadastral and the nal pegs
installation on the lot.
7 Obtain building permit 15 days DJF 423,932

BuildCo must submit 6 copies of the le for the building permit request to
the DHU (Direction de l'Habitat et l'Urbanisme).
The 2.5% tax that the company must pay is divided as follows:
• 1.5% for analysis of the request for the building permit
• 1.0% for the surveillance of the concrete structure (study and works)
8 Receive rst concrete test from the LBCE- Laboratoire Central du 7 days DJF 172,800
Bâtiment et de l'Equipement
Construction testing occurs at each phase of the building process. Concrete

crushing test is done at 7 days, then at 14 days and nal one at 21 days.
9 Receive second resistance test from the LBCE- Laboratoire Central du 7 days no charge
This is the second concrete crushing test done 7 days after the rst one.
10 Receive nal resistance test from the LBCE- Laboratoire Central du 7 days no charge
This is the nal concrete crushing test done 7 days after the second test was
done.
11 Request and receive an earthquake certi cate issued by the Direction de 2 days no charge
l'Habitat et l'Urbanisme
To obtain the certi cate of conformity after construction is complete, it is

mandatory to obtain an earthquake certi cate issued by the Direction de Page 14
l'Habitat et l'Urbanisme. BuildCo can request this certi cate by visiting the
This is the nal concrete crushing test done 7 days after the second test was
Doing done.
11 Request and receive an earthquake certi cate issued by the Direction de 2 days no charge
l'Habitat et l'Urbanisme

mandatory to obtain an earthquake certi cate issued by the Direction de
l'Habitat et l'Urbanisme. BuildCo can request this certi cate by visiting the
agency in person. The earthquake certi cate is obtained as soon as the
di erent slabs have been casted from the Sous-Direction Contrôle de la
Direction de l'Habitat et de l'Urbanisme on the basis of "good casting." The
certi cate is issued the next day after veri cation of compliance with seismic
standards. BuildCo does not have to wait for the completion of the
construction to request this certi cate.
12 Request and receive foundation inspection from the Direction de 14 days USD 300
l'Habitat et l'Urbanisme, Sous-direction Contrôle et Réglementation
Agency : Direction de l'Habitat et l'Urbanisme, Sous-direction Contrôle et
Réglementation
The works begin when the concrete plans are accepted by the Sous-direction
Contrôle et Réglementation. An inspection takes place when slabs are laid.
This procedure is not mandatory but is standard practice.
Request and receive an electrical certi cate of compliance 2 days no charge

13 Agency : Direction de l'Habitat et l'Urbanisme

mandatory to obtain an electrical certi cate of compliance issued by the
Department of Housing and Urban Development. The electrical certi cate of
compliance can be requested once the internal wiring is done in compliance
with the standards.
O cers from the Sous-Direction de l'Urbanisme will conduct a site visit and
the electrician will explain the internal wiring to the o cers. The inspection
takes place one day after the request for the certi cate of compliance. After
1-2 days, the Sous-Direction de l'Urbanisme issues the electrical certi cate of
compliance.
Request and receive an alignment certi cate 2 days no charge

14 Agency : Direction des Domaines et de la Conservation Foncière

mandatory to obtain an alignment certi cate issued by the Direction des
Domaines et de la Conservation Foncière.
Request and receive the sanitary certi cate issued by the National 2 days no charge
15 Institute of Public Health
Agency : National Institute of Public Health (l’Institut National de Santé
Publique de Djibouti)

mandatory to obtain sanitary certi cate for the septic tank issued by the
National Institute of Public Health in Djibouti.
16 Submit all certi cates of compliance and obtain nal certi cate of 7 days no charge
compliance (certi cat de conformité)
Agency : Ministry of Housing (Ministère de l’Habitat)
Page 15
Compliance of new construction is con rmed by the issuance of a Certi cate
mandatory to obtain sanitary certi cate for the septic tank issued by the
Doing National
Business Institute
2018 of Public Health in Djibouti.
Djibouti
16 Submit all certi cates of compliance and obtain nal certi cate of 7 days no charge
compliance (certi cat de conformité)
Agency : Ministry of Housing (Ministère de l’Habitat)
Compliance of new construction is con rmed by the issuance of a Certi cate

of General Conformity issued by the Department of Housing and Urban
Development at the end of the work.
This certi cate attests the conformity of the building in accordance to the
approved building permit. Several compliance certi cates must be
submitted: earthquake, sanitation, alignment, foundation and electrical
Request and receive water and sewage connection 21 days USD 500
17 Agency : O ce Nationale des Eaux de Djibouti (ONED)
For the sewage network a health certi cate is issued by the Department of
Epidemiology and Health Information, which is obtained in procedure 15.
The water company provides the meter at no charge and BuildCo lays down
the pipes to connect it to the main line.
Details – Dealing with Construction Permits in Djibouti – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge; In
o cial gazette.
Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during Inspections at 2.0
construction? (0-2) various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice
during
construction;
Page 16
Mandatory
Details – Dealing with Construction Permits in Djibouti – Measure of Quality
Answer Score
Building quality control index (0-15) 11.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge; In
o cial gazette.
Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during Inspections at 2.0
construction? (0-2) various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice
during
construction;
Mandatory
inspections are
done most of the
time during
construction.
Quality control after construction index (0-3) 3.0
Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0
accordance with the approved plans and regulations? (0-2) engineer
submits report
for nal
inspection.
Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in Page 17
charge of the
Liability
Doing and insurance
Business 2018 regimes index (0-2)
Djibouti 1.0
Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0
building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0
possible structural aws or problems in the building once it is in use (Latent Defect required by law
Liability Insurance or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certi cations index (0-4) 2.0
What are the quali cation requirements for the professional responsible for verifying Minimum 1.0
that the architectural plans or drawings are in compliance with existing building number of years
regulations? (0-2) of experience;
University
degree in
architecture or
engineering.
What are the quali cation requirements for the professional who supervises the Minimum 1.0
construction on the ground? (0-2) number of years
of experience;
University
degree in
engineering,
construction or
construction
management.
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,
transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June
2017. See the methodology for more information.
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are
(number) used.

The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
Completing all required notifications and
- Is located in the economy’s largest business city. For 11 economies the
receiving all necessary inspections
data are also collected for the second largest business city.
Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is
purchasing material for these works in an area with no physical constraints. For example, the property is not
Concluding any necessary supply contract and near a railway.
obtaining final supply - Is a new construction and is being connected to electricity for the rst
time.
Time required to complete each procedure
- Has two stories with a total surface area of approximately 1,300.6 square
(calendar days)
meters (14,000 square feet). The plot of land on which it is builtPage
is 929
18
Is at least 1 calendar day square meters (10,000 square feet).
construction
management.
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,
transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June
2017. See the methodology for more information.
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are
(number) used.

The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
Completing all required notifications and
- Is located in the economy’s largest business city. For 11 economies the
receiving all necessary inspections
data are also collected for the second largest business city.
Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is
purchasing material for these works in an area with no physical constraints. For example, the property is not
Concluding any necessary supply contract and near a railway.
obtaining final supply - Is a new construction and is being connected to electricity for the rst
time.
Time required to complete each procedure
- Has two stories with a total surface area of approximately 1,300.6 square
(calendar days)
meters (14,000 square feet). The plot of land on which it is built is 929
Is at least 1 calendar day square meters (10,000 square feet).
Each procedure starts on a separate day
Does not include time spent gathering The electricity connection:
information - Is a permanent one with a three-phase, four-wire Y connection with a
subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1,
Reflects the time spent in practice, with little
when 1 kVA = 1 kilowatt (kW).
follow-up and no prior contact with officials
- Has a length of 150 meters. The connection is to either the low- or
Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or
income per capita) underground, whichever is more common in the area where the
Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10-
meter road (such as by excavation or overhead lines) but are all carried out
Value added tax excluded
on public land. There is no crossing of other owners’ private property
The reliability of supply and transparency of because the warehouse has access to a road.
tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This
has already been completed up to and including the customer’s service
Duration and frequency of power outages (0–3)
panel or switchboard and the meter base.
Tools to monitor power outages (0–1)
Tools to restore power supply (0–1) The monthly consumption:
Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00
(0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity
Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity
reasons) and the monthly energy consumption is 26,880 kilowatt-hours
Transparency and accessibility of tariffs (0–1)
(kWh); hourly consumption is 112 kWh.
Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the
Price based on monthly bill for commercial cheapest supplier.
warehouse in case study - Tari s e ective in March of the current year are used for calculation of
the price of electricity for the warehouse. Although March has 31 days, for
* N o t e : Doing Business m e a s u r e s t h e p r i c e o f
calculation purposes only 30 days are used.
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 19
Standardized Connection
frontier score nor the ranking on the ease of getting
electricity.
Standardized Connection
Price of electricity (US cents per kWh) 26.0
Name of utility Electricité de Djibouti (EDD)

Procedures (number) 4 4.8 4.7 2 (United Arab

Emirates)
Time (days) 125 81.4 79.1 10 (United Arab

Emirates)
Cost (% of income per capita) 5979.9 780.3 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 0 4.2 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Djibouti and comparator economies – Ranking and DTF
0 100
79.35: Oman (Rank: 61)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Getting Electricity in Djibouti – Procedure, Time and Cost
7000
120
6000
100
5000
80
Time (days)
4000
60
3000
40
2000
20
Page
1000 20
getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Getting Electricity in Djibouti – Procedure, Time and Cost
7000
120
6000
100

5000
80
Time (days)
4000
60
3000
40
2000
20 1000
0 0
1 *2 3 4
Procedures (number)
Figure – Getting Electricity in Djibouti and comparator economies – Measure of Quality
8
7
7
6
Index score
5
4.2
4
3
3
2
1
0 0
0
no practice
Details – Getting Electricity in Djibouti – Procedure, Time and Cost
1 Submit application to Electricité de Djibouti and await estimate 15 calendar days DJF 0
Agency : Electricité de Djibouti (EDD)
The application is typically submitted to Electricité de Djibouti (EDD) in

person. A detailed load schedule should be attached to the application,
along with a copy of the construction permit.
Once the application is lodged, an engineer from EDD will need to come on
site to do a feasibility study. Following this step, the quote will be sent to the
customer.
2 Receive external inspection by Electricité de Djibouti 1 calendar day DJF 0

Page 21
Details – Getting Electricity in Djibouti – Procedure, Time and Cost
1 Submit application to Electricité de Djibouti and await estimate 15 calendar days DJF 0
The application is typically submitted to Electricité de Djibouti (EDD) in

person. A detailed load schedule should be attached to the application,
along with a copy of the construction permit.
Once the application is lodged, an engineer from EDD will need to come on
site to do a feasibility study. Following this step, the quote will be sent to the
customer.
2 Receive external inspection by Electricité de Djibouti 1 calendar day DJF 0

Electricité de Djibouti (EDD) inspects the site and prepares an estimate for
the connection fees.
3 Obtain external works from Electricité de Djibouti 95 calendar days DJF 19,675,428
After paying the connection fees, the client needs to wait for Electricité de
Djibouti (EDD) to obtain all the material. And for an electricity connection for
the warehouse considered in this case study, a unit substation is needed.
4 Sign supply contract and obtain meter installation and nal connection 15 calendar days DJF 604,969.06
When the external works are completed and the client has signed a supply
contract, Electricité de Djibouti (EDD) inspects the internal wiring (but not in
its entirety) and installs the meter.
Details – Getting Electricity in Djibouti – Measure of Quality
Answer
Reliability of supply and transparency of tari index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Page 22
Details – Getting Electricity in Djibouti – Measure of Quality
Answer
Reliability of supply and transparency of tari index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No
reliability of supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No
exceed a certain cap?
Communication of tari s and tari changes (0-1) 1
Are e ective tari s available online? Yes
Link to the website, if available online http://www.edd.dj/e

ddweb/upload/tarif_
2016.pdf
Are customers noti ed of a change in tari ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency
of tari index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
Page 23
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who
wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the
quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of
infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The
most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions
property (number) about the parties to the transaction, the property and the procedures are
used.
Preregistration procedures (for example,
checking for liens, notarizing sales agreement,
The parties (buyer and seller):
paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
Registration procedures in the economy's largest
- Are located in the periurban area of the economy’s largest business city.
business citya.
For 11 economies the data are also collected for the second largest
Postregistration procedures (for example, filling business city.
title with municipality) - Are 100% domestically and privately owned.
Time required to complete each procedure - Have 50 employees each, all of whom are nationals.
(calendar days) - Perform general commercial activities.

information The property (fully owned by the seller):
- Has a value of 50 times income per capita, which equals the sale price.
Each procedure starts on a separate day - though
- Is fully owned by the seller.
procedures that can be fully completed online
- Has no mortgages attached and has been under the same ownership for
are an exception to this rule
the past 10 years.
Procedure is considered completed once final
- Is registered in the land registry or cadastre, or both, and is free of title
document is received
disputes.
No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required.
Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters
property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000
square feet) is located on the land. The warehouse is 10 years old, is in
Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety
duties and taxes). standards, building codes and legal requirements. The property,
Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety.
payments are excluded - Will not be subject to renovations or additional construction following the
Quality of land administration index (0-30) purchase.
- Has no trees, natural water sources, natural reserves or historical
Reliability of infrastructure index (0-8) monuments of any kind.
Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for
Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of
agricultural activities, are required.
Land dispute resolution index (0–8)
- Has no occupants, and no other party holds a legal interest in it.
Equal access to property rights index (-2–0)
Standard Property Transfer
Property value DJF 16,957,260.40
Page 24
Standard Property Transfer
Property value DJF 16,957,260.40

Procedures (number) 6 5.7 4.6 1.00 (4 Economies)
Time (days) 39 30.3 22.3 1.00 (3 Economies)
Cost (% of property value) 12.7 6.0 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 4.5 13.4 22.7 29.00 (Singapore)
Figure – Registering Property in Djibouti and comparator economies – Ranking and DTF
0 100
73.62: Oman (Rank: 54)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of property value)
14
35
12
30
Cost (% of property value)
10
25
Time (days)
8
20
6
15
4
10
5 2
0 0
1 2 3 4 5 6
Procedures (number)
Page 25
registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Djibouti – Procedure, Time and Cost
Time (days) Cost (% of property value)
14
35
12
30
Cost (% of property value)

10
25
Time (days)
8
20
6
15
4
10
5 2
0 0
1 2 3 4 5 6
Procedures (number)
Figure – Registering Property in Djibouti and comparator economies – Measure of Quality
16
14 13.0 13.4
12
Index score
10
8 7.0 6.5 6.0
6 4.5
4
2
Details – Registering Property in Djibouti – Procedure, Time and Cost
1 Buyer and seller go to the notary with the title to draft the sale- 1 day 2% + 10% (for second
purchase agreement transfer or
Agency : Notary thereafter) property
value, + (40,000 F to
The property folder (dossier foncier) will already be in the possession of the
180,000 F (notary
seller. The folder contains the following documents: the property title, a
fees)) + 500 F per
cadastral plan of the property, the acquisition price of the previous sale, the
page (x 6, stamp
names of the owners, and the surface area of the land. The sale and
purchase agreement must be drafted by the Notary. The transfer costs for a duties)
rst time transfer of the property would be 2% + 7% property (Articles 493
and 500 of the General Fiscal Code)value. In the case the property has been
transferred more than one time (as it is assumed in the case study), the
Page 26
transfer costs would be 2% + 10% (Articles 493 and 499 of the General Fiscal
Details – Registering Property in Djibouti – Procedure, Time and Cost
1 Buyer and seller go to the notary with the title to draft the sale- 1 day 2% + 10% (for second
purchase agreement transfer or
Agency : Notary thereafter) property
value, + (40,000 F to
The property folder (dossier foncier) will already be in the possession of the
180,000 F (notary
seller. The folder contains the following documents: the property title, a
fees)) + 500 F per
cadastral plan of the property, the acquisition price of the previous sale, the
page (x 6, stamp
names of the owners, and the surface area of the land. The sale and
purchase agreement must be drafted by the Notary. The transfer costs for a duties)
rst time transfer of the property would be 2% + 7% property (Articles 493
and 500 of the General Fiscal Code)value. In the case the property has been
transferred more than one time (as it is assumed in the case study), the
transfer costs would be 2% + 10% (Articles 493 and 499 of the General Fiscal
Code).
2 Notary checks for mortgages or liens on the property 1 day DJF 2,500
Agency : Conservation de la propriété foncière
The Notary check that the property has no liens or charges at the Service
des Domaines (Conservation de la Propriété Foncière). The Notary asks for a
complete list of documents a ecting the property ( che de renseignement
sur un titre foncier).
3 Notary proceeds to tax authorities to check status of the property and 2 - 3 days no cost
capital gains
Agency : Tax Authority
The Notary will collect them from the seller the capital gains tax if there any
to be paid.
4 Parties return to the notary to sign the sale-purchase agreement 1 day (already paid in
Agency : Notary Procedure 1)
At this point the buyer pays the seller a deposit. If there are capital gains to
be paid the seller will pay them at a rate of 5%.
5 Notary registers the sale agreement with the tax authority. 3 - 4 weeks 10% property value
Agency : Tax Authority (already paid in
Procedure 1) + 500 F
The sale-purchase agreement is notarized (acte de vente) and then it is
per page (x 6, stamp
registered with the tax authority (bureau de l’Enregistrement et du Timbre).
duties already paid
Payment of registration fees will be made directly at l’Hôtel des Impôts.
in Procedure 1)
6 Notary requests a name change on behalf of the new owner at the 7 - 10 days 2% property value
Conservation de la propriété foncière (already paid in
Agency : Conservation de la propriété foncière Procedure 1)
This Procedure is a mere conversion, not a new act of registration and it will
take place approximately 10 months after provisional registration. The
Procedure involves checking all records, which are paper-based, and all
history of transactions relevant to the property.
Page 27
Takes Business
Doing place simultaneously with previous procedure.
2018 Djibouti
Details – Registering Property in Djibouti – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 4.5
Reliability of infrastructure index (0-8) 2.0
What is the institution in charge of immovable property registration? Service des

Domaines et de
la Conservation
Fonciere
In what format are the majority of title or deed records kept in the largest business city Paper 0.0
—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Service des
Domaines et de
la Conservation
Fonciere
In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the Single database 1.0
cadastral or mapping agency kept in a single database, in di erent but linked databases
or in separate databases?
Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0
the same identi cation number for properties?
Transparency of information index (0–6) 1.5
Who is able to obtain information on land ownership at the agency in charge of Only 0.0
immovable property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction Yes, online 0.5
made publicly available–and if so, how?
Link for online access: http://admin.thei

guides.org/Medi
a/Documents/PR
OCEDURE%20D%
20immatriculatio
n.pdf
http://www.theig
uides.org/public-
docs/guides/djib
outi
Page 28
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0
Details – Registering Property in Djibouti – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 4.5
Reliability of infrastructure index (0-8) 2.0
What is the institution in charge of immovable property registration? Service des

Domaines et de
la Conservation
Fonciere
In what format are the majority of title or deed records kept in the largest business city Paper 0.0
—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Service des
Domaines et de
la Conservation
Fonciere
In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0
in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the Single database 1.0
cadastral or mapping agency kept in a single database, in di erent but linked databases
or in separate databases?
Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0
the same identi cation number for properties?
Transparency of information index (0–6) 1.5
Who is able to obtain information on land ownership at the agency in charge of Only 0.0
immovable property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction Yes, online 0.5
made publicly available–and if so, how?

guides.org/Medi
a/Documents/PR
OCEDURE%20D%
20immatriculatio
n.pdf
http://www.theig
uides.org/public-
docs/guides/djib
outi
Page 29
immovable property registration in the largest business city made publicly available–
docs/guides/djib
Doing Business 2018 Djibouti outi
immovable property registration in the largest business city made publicly available–
and if so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5
legally binding document that proves property ownership within a speci c time frame–
and if so, how does it communicate the service standard?

guides.org/Medi
a/Documents/No
te%20de%20serv
ice%20des%20Im
pots.pdf
Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available o cial statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2016:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0
—and if so, how?
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5
speci c time frame—and if so, how does it communicate the service standard?

guides.org/Medi
a/Documents/FO
RMALITES AU
NIVEAU DU
CADASTRE.pdf
Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the economy formally registered at the immovable No 0.0
property registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Page 30
Are all privately held land plots in the economy formally registered at the immovable No 0.0
property
Doing registry?
Are all privately held land plots in the largest business city formally registered at the No 0.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Land dispute resolution index (0–8) 1.0
Does the law require that all property sale transactions be registered at the immovable No 0.0
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private No 0.0

guarantee?
Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information
certi ed by the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a Yes 0.5
property transaction (e.g., checking the compliance of contracts with requirements of
the law)?
If yes, who is responsible for checking the legality of the documents? Registrar;
Notary; Lawyer.
Does the legal system require veri cation of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Registrar;
Notary; Lawyer.
Is there a national database to verify the accuracy of identity documents? No 0.0
For a standard land dispute between two local businesses over tenure rights of a Tribunal civil
property worth 50 times gross national income (GNI) per capita and located in the
largest business city, what court would be in charge of the case in the rst instance?
How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0
such a case (without appeal)? years
Are there any statistics on the number of land disputes in the rst instance? No 0.0
Number of land disputes in the largest business city in 2016:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
Do married men and married women have equal ownership rights to property? Yes 0.0
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy
laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the
methodology for more information.
What the indicators measure Case study assumptions Page 31

Do married men and married women have equal ownership rights to property? Yes 0.0
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy
laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal
rights of borrowers and lenders with respect to secured transactions
Rights of borrowers and lenders through
through 2 sets of indicators. The depth of credit information index
collateral laws (0-10)
measures rules and practices a ecting the coverage, scope and
Protection of secured creditors’ rights through
accessibility of credit information available through a credit registry or a
bankruptcy laws (0-2)
credit bureau. The strength of legal rights index measures the degree to
Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and
lenders and thus facilitate lending. For each economy it is first determined
Scope and accessibility of credit information
whether a unitary secured transactions system exists. Then two case
distributed by credit bureaus and credit
scenarios, case A and case B, are used to determine how a nonpossessory
registries (0-8)
security interest is created, publicized and enforced according to the law.
Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if
Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a
credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank.
Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow
Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set
registry as a percentage of adult population of legal provisions relating to the use of movable collateral.
Several assumptions about the secured borrower (ABC) and lender

(BizBank) are used:
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s
largest business city. For 11 economies the data are also collected for the
second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the
loan, ABC grants BizBank a nonpossessory security interest in one category
of movable assets, for example, its machinery or its inventory. ABC wants
to keep both possession and ownership of the collateral. In economies
where the law does not allow nonpossessory security interests in movable
property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or
a similar substitute for nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating

charge or any charge that gives BizBank a security interest over ABC’s
combined movable assets (or as much of ABC’s movable assets as
possible). ABC keeps ownership and possession of the assets.

Strength of legal rights index (0-12) 1 1.7 6.0 12.00 (4 Economies)
Depth of credit information index (0-8) 0 4.8 6.6 8.00 (34 Economies)
Page 32
Credit registry coverage (% of adults) 0.4 14.0 18.3 100.00 (3 Economies)
possible). ABC keeps ownership and possession of the assets.

Strength of legal rights index (0-12) 1 1.7 6.0 12.00 (4 Economies)
Depth of credit information index (0-8) 0 4.8 6.6 8.00 (34 Economies)
Credit registry coverage (% of adults) 0.4 14.0 18.3 100.00 (3 Economies)
Credit bureau coverage (% of adults) 0.0 14.2 63.7 100.00 (23 Economies)
Figure – Getting Credit in Djibouti and comparator economies – Ranking and DTF
0 100
35.00: Oman (Rank: 133)
Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting
credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit
information index.
Figure – Legal Rights in Djibouti and comparator economies
3.5
3
3
2.5
Index score
2
2 1.7
1.5
1 1
1
0.5
0
0
Details – Legal Rights in Djibouti
Strength of legal rights index (0-12) 1
Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No
requiring a speci c description of collateral? Page 33
Details – Legal Rights in Djibouti
Strength of legal rights index (0-12) 1
Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No
enforcement of functional equivalents to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No
requiring a speci c description of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes
a speci c description of collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No
and replacements of the original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No
obligations be secured between parties; and can the collateral agreement include a maximum amount for which the
assets are encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No
and by asset type, with an electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No
performed online by any interested third party?
Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No
procedure?
Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No
reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the
stay and sets a time limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law No
allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured
creditor to keep the asset in satisfaction of the debt?
Figure – Credit Information in Djibouti and comparator economies
10
8
8
Index score
6
6
4.8
0 0 0
0
Details – Credit Information in Djibouti Page 34

0 0 0
0
Djibouti
Doing Business 2018 Egypt, Arab Rep.
Djibouti Eritrea Ethiopia Oman Middle East & North Africa
Details – Credit Information in Djibouti
Credit Credit
Depth of credit information index (0-8) bureau registry Score
Are data on both firms and individuals distributed? No No 0
Are both positive and negative credit data distributed? No No 0
Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0
distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0
than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0
for this component.)
Are data on loan amounts below 1% of income per capita distributed? No No 0
By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0
Can banks and financial institutions access borrowers’ credit information online (for example, No No 0
through an online platform, a system-to-system connection or both)?
Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0
institutions assess the creditworthiness of borrowers?
Score ("yes" to either public bureau or private registry) 0
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Coverage Credit bureau Credit registry
Number of individuals 0 1,532
Number of firms 0 943
Total 0 2,475
Percentage of adult population 0.0 0.4
Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their
personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk
of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.
Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party assumptions about the business and the transaction.
transactions; Disclosure requirements for
related-party transactions The business (Buyer):
Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important
minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that
directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it
is assumed that Buyer is a large private company with multiple
Page 35
transactions; Available legal remedies (damages,
Percentage of adult population 0.0 0.4
Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their
personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk
of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more
information.
Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several
approval requirements for related-party assumptions about the business and the transaction.
transactions; Disclosure requirements for
related-party transactions The business (Buyer):
Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important
minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that
directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it
transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple
disgorgement of profits, fines, imprisonment, shareholders.
rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may
legally act on behalf of Buyer where permitted, even if this is not speci cally
Ease of shareholder suits index (0–10): Access to
required by law.
internal corporate documents; Evidence
- Has a supervisory board (applicable to economies with a two-tier board
obtainable during trial and allocation of legal
system) on which 60% of the shareholder-elected members have been
expenses
appointed by Mr. James, who is Buyer’s controlling shareholder and a
Extent of conflict of interest regulation index
member of Buyer’s board of directors.
(0–10): Simple average of the extent of disclosure,
- Has not adopted any bylaws or articles of association that di er from
extent of director liability and ease of
default minimum standards and does not follow any nonmandatory codes,
shareholder indices
principles, recommendations or guidelines relating to corporate
Extent of shareholder rights index (0-10): governance.
Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network.
decisions
Extent of ownership and control index (0-10): The transaction involves the following details:
Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve-
from undue board control and entrenchment member board.
Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of
Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores.
compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to
expand Buyer’s distribution of its food products, a proposal to which Buyer
Extent of shareholder governance index (0–10):
agrees. The price is equal to 10% of Buyer’s assets and is higher than the
Simple average of the extent of shareholders
market value.
rights, extent of ownership and control and
- The proposed transaction is part of the company’s ordinary course of
extent of corporate transparency indices
business and is not outside the authority of the company.
Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained,
(0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not
interest regulation and extent of shareholder
fraudulent).
governance indices
- The transaction causes damages to Buyer. Shareholders sue Mr. James
and the other parties that approved the transaction.

Extent of conflict of interest regulation index (0- 5.7 4.9 6.4 9.3 (New Zealand)
10)
Extent of shareholder governance index (0-10) 4.7 4.7 6.4 Page 36

9.00 (Kazakhstan)
and the other parties that approved the transaction.

Extent of conflict of interest regulation index (0- 5.7 4.9 6.4 9.3 (New Zealand)
10)
Extent of shareholder governance index (0-10) 4.7 4.7 6.4 9.00 (Kazakhstan)
Figure – Protecting Minority Investors in Djibouti and comparator economies – Ranking and DTF
0 100
46.67: Oman (Rank: 124)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier
scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of
con ict of interest regulation index and the extent of shareholder governance index.
Figure – Protecting Minority Investors in Djibouti and comparator economies – Measure of Quality
Djibouti 3 7 7 5 6 3
Egypt, Arab Rep. 7 3 8 7 5 3
Eritrea 3 0 3 3 5 5
Ethiopia 4 0 3 3 5 2
Oman 4 5 8 4 4 3
OECD high income 7.3 5.6 6.5 5.2 6.3 7.4
Middle East & North Africa 5.2 4.6 6.2 4.2 4.7 4
0 5 10 15 20 25 30 35 40
Sub-Indicator Score
Extent of corporate transparency index (010) Extent of director liability index (010) Extent of disclosure index (010)
Extent of ownership and control index (010) Extent of shareholder rights index (010) Ease of shareholder suits index (010)
Details – Protecting Minority Investors in Djibouti – Measure of Quality
Answer Score Page 37

Extent of ownership and control index (010) Extent of shareholder rights index (010) Ease of shareholder suits index (010)
Details – Protecting Minority Investors in Djibouti – Measure of Quality
Answer Score
Extent of con ict of interest regulation index (0-10) 5.7
Extent of disclosure index (0-10) 7
Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0
directors
excluding
interested
members
Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0
Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0
all material facts
Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0
the transaction
and on the
con ict of
interest
Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0
2) obligation
Extent of director liability index (0-10) 7
Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0
for the damage the transaction caused to Buyer? (0-1)
Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0
caused to Buyer? (0-2)
Can shareholders hold the other directors liable for the damage the transaction caused Not liable 0.0
to Buyer (0-2)
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0
shareholders? (0-1)
Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0
shareholders? (0-1)
Is Mr. James disquali ed or ned and imprisoned upon a successful claim by Yes 1.0
shareholders? (0-1)
Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0
or prejudicial
Ease of shareholder suits index (0-10) 3
Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0
transaction documents? (0-1)
Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) No 0.0
Can the plainti request categories of documents from the defendant without No 0.0
identifying speci c ones? (0-1) Page 38
Can the
Doing plainti 2018
Business obtain any documents from the defendant and witnesses at trial? (0-3)
Djibouti No 0.0
Can the plainti request categories of documents from the defendant without No 0.0
identifying speci c ones? (0-1)
Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0
Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes regardless of 2.0
outcome
Extent of shareholder governance index (0-10) 4.7
Extent of shareholder rights index (0-10) 6
Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0
shareholders?
Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0
Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0
shares?
Must shareholders approve the election and dismissal of the external auditor? Yes 1.0
Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0
shares approve?
Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0
member approval?
Assuming that Buyer is a limited company, can members representing 10% call for a No 0.0
meeting of members?
Assuming that Buyer is a limited company, must all members consent to add a new No 0.0
member?
Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0
interest to the existing members before they can sell to non-members?
Extent of ownership and control index (0-10) 5
Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0
directors?
Must the board of directors include independent and nonexecutive board members? No 0.0
Can shareholders remove members of the board of directors without cause before the Yes 1.0
end of their term?
Must the board of directors include a separate audit committee exclusively comprising Yes 1.0
board members?
Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0
of Buyer?
Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0
Page 39
MustBusiness
Doing Buyer pay declared dividends within a maximum period set by law?
2018 Djibouti Yes 1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0
Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0
disagreements among members?
Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0
o er to all shareholders upon acquiring 50% of Buyer?
Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0
maximum period set by law?
Extent of corporate transparency index (0-10) 3
Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0
Must Buyer disclose information about board members’ primary employment and No 0.0
directorships in other companies?
Must Buyer disclose the compensation of individual managers? No 0.0
Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0
meeting agenda?
Must Buyer's annual nancial statements be audited by an external auditor? No 0.0
Must Buyer disclose its audit reports to the public? No 0.0
Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0
Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0
the meeting agenda?
Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0
audited by an external auditor?
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well
as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project
was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016).
Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an
economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data
shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost
across economies.
The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes.
See the methodology for more information.
Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory
2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures
joint ling and payment) the administrative burden of paying taxes, contributions and dealing with
post ling processes. Information is also compiled on frequency of ling
Total number of taxes and contributions paid,
Page 40
and payments, time taken to comply with tax laws, time taken to comply
including consumption taxes (value added tax,
Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0
audited by an external auditor?
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well
as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project
was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016).
Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an
economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data
shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost
across economies.
The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes.
See the methodology for more information.
Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory
2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures
joint ling and payment) the administrative burden of paying taxes, contributions and dealing with
post ling processes. Information is also compiled on frequency of ling
Total number of taxes and contributions paid,
and payments, time taken to comply with tax laws, time taken to comply
including consumption taxes (value added tax,
with the requirements of post ling processes and time waiting.
sales tax or goods and service tax)
Method and frequency of filing and payment To make data comparable across economies, several assumptions are
used:
Time required to comply with 3 major taxes
- TaxpayerCo is a medium-size business that started operations on January
(hours per year)
1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes
Collecting information, computing tax payable and contributions recorded are paid in the second year of operation
Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at
all levels of government.
Arranging payment or withholding
Preparing separate tax accounting books, if
The VAT refund process:
required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the
Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally
all taxes) spread per month (1,050 times income per capita divided by 12) and cost
of goods sold are equally expensed per month (875 times income per
Profit or corporate income tax
capita divided by 12). The machinery seller is registered for VAT and excess
Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive
employer months if the VAT rate is the same for inputs, sales and the machine and
Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT
Dividend, capital gains, financial transactions in June 2016.
taxes The corporate income tax audit process:
Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect
tax depreciation rates, or incorrectly treating an expense as tax deductible)
Post ling Index
leads to an incorrect income tax return and a corporate income
Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily
Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is
Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits
corrected information after the deadline for submitting the annual tax
Time to complete a corporate income tax audit
return, but within the tax assessment period.

Payments (number per year) 35 17.9 10.9 3 (Hong Kong SAR,

China)
Page 41
return, but within the tax assessment period.

Payments (number per year) 35 17.9 10.9 3 (Hong Kong SAR,

China)
Time (hours per year) 76 203.4 160.7 50 (Estonia)
Total tax and contribution rate (% of profit) 37.7 32.6 40.1 18.47 (32 Economies)
Postfiling index (0-100) 49.57 50.56 83.45 99.38 (Estonia)
Figure – Paying Taxes in Djibouti and comparator economies – Ranking and DTF
0 100
90.60: Oman (Rank: 11)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of
paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators –
number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of
the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to
frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall
distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total
tax rate below this threshold receive the same score as the economy at the threshold.
Figure – Paying Taxes in Djibouti and comparator economies – Measure of Quality
120
99.54
100
85.32
80
Index score
60 49.57 50.89 50.56
40
26.62
20
Details – Paying Taxes in Djibouti
Total tax and

Tax or mandatory Payments Notes on Time contribution rate Notes
contribution (number) Payments (hours) Statutory tax rate Tax base (% of profit) on TTR
Page 42
Social security 12.0 36.0 15.7% gross 17.71
Figure – Paying Taxes in Djibouti and comparator economies – Measure of Quality
120
99.54
100
85.32
80
Index score
60 49.57 50.89 50.56
40
26.62
20
Details – Paying Taxes in Djibouti
Total tax and

Tax or mandatory Payments Notes on Time contribution rate Notes
contribution (number) Payments (hours) Statutory tax rate Tax base (% of profit) on TTR
Social security 12.0 36.0 15.7% gross 17.71

contributions salaries
Corporate income 4.0 24.0 25% of profits or 1% of 17.68

tax turnover (whichever is
higher)
Unbuilt property tax 1.0 25% rental value 0.84
Business license 1.0 FD 120,000 fixed fees 0.75

(patente)
Tax on insurance 1.0 20% Value of 0.42

contracts insurance
Vehicle tax 1.0 FD 35,000 fixed fees 0.22
Local tax (trash 1.0 4.5% built 0.12

collection etc) property
rental value
Employee paid - 0.0 6% gross 0.00 withheld

Social security salaries
contributions
Fuel tax 1.0 included in 0.00 small

price of fuel amount
Stamp duty 1.0 various rates per page or 0.00 small

transaction amount
Value Added Tax 12.0 16.0 10% value 0.00 not

(VAT) added included
Totals 35 76 37.7
Page 43
Details – Paying Taxes in Djibouti – Tax by Type
Totals 35 76 37.7
Details – Paying Taxes in Djibouti – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 17.7
Labor tax and contributions (% of profit) 17.7
Other taxes (% of profit) 2.3
Details – Paying Taxes in Djibouti – Measure of Quality
Answer Score
Post ling index (0-100) 49.57
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? Yes
Restrictions on VAT refund process None
Percentage of cases exposed to a VAT audit (%) 50% - 74%
Is there a mandatory carry forward period? No
Time to comply with VAT refund (hours) 6.0 88
Time to obtain a VAT refund (weeks) 50.0 9.61
Corporate income tax audits
Does corporate income tax exist? Yes
Percentage of cases exposed to a corporate income tax audit (%) 50% - 74%
Time to comply with a corporate income tax audit (hours) 15.0 75.23
Time to complete a corporate income tax audit (weeks) 23.9 25.45
Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named
corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.
Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business
measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border
compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent
round of data collection for the project was completed in June 2017. See the methodology for more information.
Page 44
Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research
a corporate income tax audit and time to complete a corporate income tax audit.
N/A = Not applicable.
Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business
measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border
compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent
round of data collection for the project was completed in June 2017. See the methodology for more information.
Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research
questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems.
With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic
platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing
business. The new dataset on EDI and SW systems is available here.
Documentary compliance To make the data comparable across economies, a few assumptions are
made about the traded goods and the transactions:
Obtaining, preparing and submitting documents
during transport, clearance, inspections and port
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22
or border handling in origin economy
days are recorded as 22×24=528 hours). If customs clearance takes 7.5
Obtaining, preparing and submitting documents
hours, the data are recorded as is. Alternatively, suppose documents are
required by destination economy and any transit
submitted to a customs agency at 8:00a.m., are processed overnight and
economies
can be picked up at 8:00a.m. the next day. The time for customs clearance
Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24
practice, including electronic submissions of hours.
information
Border compliance Cost: Insurance cost and informal payments for which no receipt is issued
are excluded from the costs recorded. Costs are reported in U.S. dollars.
Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on
Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire.
than 20% of shipments) Contributors are private sector experts in international trade logistics and
Handling and inspections that take place at the are informed about exchange rates.
economy’s port or border
Assumptions of the case study: - For all 190 economies covered by Doing
Domestic transport
Business, it is assumed a shipment is in a warehouse in the largest
Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the
warehouse or port/border largest business city of the importing economy. - It is assumed each
Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708)
from its natural import partner—the economy from which it imports the
Traffic delays and road police checks while
largest value (price times quantity) of auto parts. It is assumed each
shipment is en route
economy exports the product of its comparative advantage (de ned by the
largest export value) to its natural export partner—the economy that is the
largest purchaser of this product. Shipment value is assumed to be
$50,000. - The mode of transport is the one most widely used for the
chosen export or import product and the trading partner, as is the
seaport, or land border crossing. - All electronic information submissions
requested by any government agency in connection with the shipment are
considered to be documents obtained, prepared and submitted during the
export or import process. - A port or border is a place (seaport, airport or
land border crossing) where merchandise can enter or leave an economy. -
Relevant government agencies include customs, port authorities, road
police, border guards, standardization agencies, ministries or departments
of agriculture or industry, national security agencies and any other
government authorities.
Page 45
of agriculture or industry, national security agencies and any other
Doing Business 2018 Djibouti government authorities.

Time to export: Border compliance (hours) 109 62.6 12.7 0 (17 Economies)
Cost to export: Border compliance (USD) 944 464.4 149.9 0.00 (19 Economies)
Time to export: Documentary compliance 72 74.3 2.4 1.0 (25 Economies)

(hours)
Cost to export: Documentary compliance (USD) 95 243.6 35.4 0.00 (19 Economies)
Time to import: Border compliance (hours) 78 112.3 8.7 0.00 (21 Economies)
Cost to import: Border compliance (USD) 1209 540.7 111.6 0.00 (27 Economies)
Time to import: Documentary compliance 50 94.5 3.5 1.0 (30 Economies)

(hours)
Cost to import: Documentary compliance (USD) 100 266.2 25.6 0.00 (30 Economies)
Figure – Trading across Borders in Djibouti and comparator economies – Ranking and DTF
0 100
79.39: Oman (Rank: 72)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for
trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for
documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking).
Figure – Trading across Borders in Djibouti – Time and Cost
Time (hours) Cost (USD)
120 1400
109
1209
100 1200
944 78 1000
80 72
Time (hours)
Cost (USD)
800
60 50
600
40
400
20 200
95 100
0 0
Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 46
Figure – Trading across Borders in Djibouti – Time and Cost
Time (hours) Cost (USD)
120 1400
109
1209
100 1200
944 78 1000
80 72
Time (hours)
Cost (USD)
800
60 50
600
40
400
20 200
95 100
0 0
Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance
Details – Trading across Borders in Djibouti
Characteristics Export Import
Product HS 09 : Coffee, tea, matï and spices HS 8708: Parts and accessories of motor vehicles
Trade partner Egypt United Arab Emirates
Border Djibouti port Djibouti port
Distance (km) 11 11
Domestic transport time (hours) 2 2
Domestic transport cost (USD) 163 165
Details – Trading across Borders in Djibouti – Components of Border Compliance
Time to Complete Associated Costs

(hours) (USD)
Export: Clearance and inspections required by customs authorities 48.0 514.0
Export: Clearance and inspections required by agencies other than customs 24.0 186.0
Export: Port or border handling 108.9 244.3
Import: Clearance and inspections required by customs authorities 42.0 583.5
Import: Clearance and inspections required by agencies other than customs 0.0 0.0
Import: Port or border handling 78.0 625.0
Details – Trading across Borders in Djibouti – Trade Documents
Export Import
Bill of lading Bill of Lading
Commercial invoice Commercial invoice Page 47

Domestic transport cost (USD) 163 165
Details – Trading across Borders in Djibouti – Components of Border Compliance
Time to Complete Associated Costs

(hours) (USD)
Export: Clearance and inspections required by customs authorities 48.0 514.0
Export: Clearance and inspections required by agencies other than customs 24.0 186.0
Export: Port or border handling 108.9 244.3
Import: Clearance and inspections required by customs authorities 42.0 583.5
Import: Clearance and inspections required by agencies other than customs 0.0 0.0
Import: Port or border handling 78.0 625.0
Details – Trading across Borders in Djibouti – Trade Documents
Export Import
Bill of lading Bill of Lading
Commercial invoice Commercial invoice
Packing list Customs import declaration
Customs export declaration Electronic cargo tracking note (BESC)
Certificate of origin Packing list
Gate pass Gate pass
Cargo release order SOLAS certificate
SOLAS certificate
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance
court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that
promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the
Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract
courts (calendar days) between 2 domestic businesses. The case study assumes that the court
hears an expert on the quality of the goods in dispute. This distinguishes
Time to file and serve the case
the case from simple debt enforcement.
Time for trial and to obtain the judgment
To make the data comparable across economies, Doing Business uses
Time to enforce the judgment
several assumptions about the case:
Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller
courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11
Attorney fees Page
economies the data are also collected for the second largest business city.48
SOLAS certificate
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance
court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that
promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the
Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract
courts (calendar days) between 2 domestic businesses. The case study assumes that the court
hears an expert on the quality of the goods in dispute. This distinguishes
Time to file and serve the case
the case from simple debt enforcement.
Time for trial and to obtain the judgment
To make the data comparable across economies, Doing Business uses
Time to enforce the judgment
several assumptions about the case:
Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller
courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11
Attorney fees economies the data are also collected for the second largest business city.
- The buyer orders custom-made goods, then fails to pay.
Court fees
- The value of the dispute is 200% of the income per capita or the
Enforcement fees
equivalent in local currency of USD 5,000, whichever is greater.
Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over
commercial cases worth 200% of income per capita or $5,000.
Court structure and proceedings (-1-5)
- The seller requests a pretrial attachment to secure the claim.
Case management (0-6) - The dispute on the quality of the goods requires an expert opinion.
Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s
movable assets.
Standardized Case
Claim value DJF 888,600.00
Court name Djibouti First Instance Court

Time (days) 1025 638.5 577.8 164.00 (Singapore)
Cost (% of claim value) 34.0 24.4 21.5 9.00 (Iceland)
Quality of judicial processes index (0-18) 3.0 5.9 11.0 15.50 (Australia)
Figure – Enforcing Contracts in Djibouti and comparator economies – Ranking and DTF
0 100
60.02: Oman (Rank: 67)
54.21: Regional Average (Middle East & North Africa) Page 49

Quality Business
Doing of judicial processes index (0-18)
2018 Djibouti 3.0 5.9 11.0 15.50 (Australia)
Figure – Enforcing Contracts in Djibouti and comparator economies – Ranking and DTF
0 100
60.02: Oman (Rank: 67)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for
enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Enforcing Contracts in Djibouti – Time and Cost
Time (days) Cost (% of claim value)
1200 40
1025 34.0 1010 35
1000
Cost (% of claim value)

30
26.2
800 24.4
Time (days)
22.6 21.5 25
638.5 598
577.8
600 490 530 20
15.2 15.1
15
400
10
200
5
0 0
Djibouti Egypt, Arab Rep. Eritrea Ethiopia Middle East & OECD Oman
North Africa high income
Figure – Enforcing Contracts in Djibouti and comparator economies – Measure of Quality
Djibouti 1.5 0 1.5
Egypt, Arab Rep. 2 0 3.5
Eritrea 1.5 0 1.5
Ethiopia 1.5 1 0 3
Oman 2.5 0 4
OECD high income 2.5 2.9 2 3.6
Middle East & North Africa 2.1 0.7 0.3 2.8
0 2 4 6 8 10
Page 5012
Djibouti Egypt, Arab Rep. Eritrea Ethiopia Middle East & OECD Oman
North Africa high income
Figure – Enforcing Contracts in Djibouti and comparator economies – Measure of Quality
Djibouti 1.5 0 1.5
Egypt, Arab Rep. 2 0 3.5
Eritrea 1.5 0 1.5
Ethiopia 1.5 1 0 3
Oman 2.5 0 4
OECD high income 2.5 2.9 2 3.6
0 2 4 6 8 10 12
Sub-Indicator Score
Alternative dispute resolution (03) Case management (06) Court automation (04) Court structure and proceedings (15)
Details – Enforcing Contracts in Djibouti
Indicator
Time (days) 1025
Filing and service 30
Trial and judgment 550
Enforcement of judgment 445
Cost (% of claim value) 34.0
Attorney fees 17
Court fees 10
Enforcement fees 7
Quality of judicial processes index (0-18) 3.0
Court structure and proceedings (-1-5) 1.5
Case management (0-6) 0.0
Court automation (0-4) 0.0
Alternative dispute resolution (0-3) 1.5
Details – Enforcing Contracts in Djibouti – Measure of Quality

Page 51
Details – Enforcing Contracts in Djibouti – Measure of Quality
Answer Score
Quality of judicial processes index (0-18) 3.0
Court structure and proceedings (-1-5) 1.5
1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0
2. Small claims court 0.0
2.a. Is there a small claims court or a fast-track procedure for small claims? No
2.b. If yes, is self-representation allowed? n.a.
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, but manual 0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
Case management (0-6) 0.0
1. Time standards 0.0
1.a. Are there laws setting overall time standards for key court events in a civil case? No
1.b. If yes, are the time standards set for at least three court events? n.a.
1.c. Are these time standards respected in more than 50% of cases? n.a.
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be No
granted?
2.b. Are adjournments limited to unforeseen and exceptional circumstances? No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.
3. Can two of the following four reports be generated about the competent court: (i) No 0.0
time to disposition report; (ii) clearance rate report; (iii) age of pending cases report;
and (iv) single case progress report?
4. Is a pretrial conference among the case management techniques used before the No 0.0
competent court?
5. Are there any electronic case management tools in place within the competent court No 0.0
for use by judges?
6. Are there any electronic case management tools in place within the competent court No 0.0
for use by lawyers?
Court automation (0-4) 0.0
1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent court?
2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?
Page 52
1. Can the initial complaint be led electronically through a dedicated platform within No 0.0
the competent
Doing Businesscourt?2018 Djibouti
2. Is it possible to carry out service of process electronically for claims led before the No 0.0
competent court?
3. Can court fees be paid electronically within the competent court? No 0.0
4. Publication of judgments 0.0
4.a Are judgments rendered in commercial cases at all levels made available to the No
general public through publication in o cial gazettes, in newspapers or on the
internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme No
court level made available to the general public through publication in o cial
gazettes, in newspapers or on the internet or court website?
1. Arbitration 1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or Yes

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public No
order or public policy—that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
2. Mediation/Conciliation 0.0
2.a. Is voluntary mediation or conciliation available? No
2.b. Are mediation, conciliation or both governed by a consolidated law or n.a.

consolidated chapter or section of the applicable code of civil procedure
encompassing substantially all their aspects?
2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., n.a.
if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?
Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are
used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization,
liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered
by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central
banks and the Economist Intelligence Unit.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across
economies, several assumptions about the business and the case are
Measured in calendar years
used:
Appeals and requests for extension are included
- A hotel located in the largest city (or cities) has 201 employees and 50
Cost required to recover debt (% of debtor’s estate)
suppliers. The hotel experiences nancial di culties. Page 53
Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent
if mediation or conciliation is successful, a refund of court ling fees, income tax
credits or the like)?
Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are
used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization,
liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered
by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central
banks and the Economist Intelligence Unit.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across
economies, several assumptions about the business and the case are
Measured in calendar years
used:
Appeals and requests for extension are included
- A hotel located in the largest city (or cities) has 201 employees and 50
Cost required to recover debt (% of debtor’s estate)
suppliers. The hotel experiences nancial di culties.
Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent
Court fees in local currency of USD 200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over
Fees of insolvency administrators
the hotel’s real estate. The hotel cannot pay back the loan, but makes
Lawyers’ fees enough money to operate otherwise.
Assessors’ and auctioneers’ fees
In addition, Doing Business evaluates the adequacy and integrity of the
Other related fees existing legal framework applicable to liquidation and reorganization
Outcome proceedings through the strength of insolvency framework index. The
index tests whether economies adopted internationally accepted good
Whether business continues operating as a going
practices in four areas: commencement of proceedings, management of
concern or business assets are sold piecemeal
debtor’s assets, reorganization proceedings and creditor participation.
Recovery rate for creditors
Measures the cents on the dollar recovered by

secured creditors
Outcome for the business (survival or not)
determines the maximum value that can be
recovered
Official costs of the insolvency proceedings are
deducted
Depreciation of furniture is taken into account
Present value of debt recovered
Strength of insolvency framework index (0- 16)
Sum of the scores of four component indices:

Commencement of proceedings index (0-3)
Management of debtor’s assets index (0-6)
Reorganization proceedings index (0-3)
Creditor participation index (0-4)

Recovery rate (cents on the dollar) 37.5 25.5 71.2 93.1 (Norway)
Time (years) 2.3 3.0 1.7 0.4 (Ireland)
Page 54
Cost (% of estate) 11.0 13.8 9.1 1.00 (Norway)
Creditor participation index (0-4)

Recovery rate (cents on the dollar) 37.5 25.5 71.2 93.1 (Norway)
Time (years) 2.3 3.0 1.7 0.4 (Ireland)
Cost (% of estate) 11.0 13.8 9.1 1.00 (Norway)
Outcome (0 as piecemeal sale and 1 as going 0 .. .. ..

concern)
Strength of insolvency framework index (0-16) 9.0 5.4 12.1 15.00 (6 Economies)
Figure – Resolving Insolvency in Djibouti and comparator economies – Ranking and DTF
0 100
42.40: Oman (Rank: 98)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for
resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of
insolvency framework index.
Figure – Resolving Insolvency in Djibouti – Time and Cost
Time (years) Cost (% of estate)
4.5 25
22.0 4.0
4
3.5 20
3.0 3.0 Cost (% of estate)
Time (years)
3 14.5
2.5 13.8 15
2.5 2.3
11.0
2 1.7 9.1 10
1.5
1 3.5 5
0.5
0 0
Djibouti Egypt, Arab Rep. no practice Ethiopia Middle East & OECD Oman
Eritrea North Africa high income
Figure – Resolving Insolvency in Djibouti and comparator economies – Measure of Quality
Djibouti 5.5 2 1 0.5
Page 55
Egypt, Arab Rep. 4 2 2 0
Djibouti Egypt, Arab Rep. no practice Ethiopia Middle East & OECD Oman
Eritrea North Africa high income
Figure – Resolving Insolvency in Djibouti and comparator economies – Measure of Quality
Djibouti 5.5 2 1 0.5
Egypt, Arab Rep. 4 2 2 0
Eritrea 4 2 1 0
Ethiopia 4 2 1 0
Oman 4 2 1 0
OECD high income 5.4 2.8 2.3 1.9
0 2 4 6 8 10 12 14
Sub-Indicator Score
Management of debtor's assets index (06) Commencement of proceedings index (03) Creditor participation index (04)
Reorganization proceedings index (03)
Figure – Resolving Insolvency in Djibouti and comparator economies – Recovery Rate

Recovery Rate (cents on the dollar)
40 37.5 38.1
35
30
28.7
25.8 25.5
25
20
15
10
5
0.0
0
Details – Resolving Insolvency in Djibouti
Indicator Answer Explanation
Proceeding foreclosure Mirage cannot repay the money owed to BizBank, so the bank will start foreclosure
proceedings at the First Instance Court. At the end of the procedure, the hotel building will
be sold and BizBank will obtain payment.
Outcome piecemeal sale Mirage's assets will be sold piecemeal after the foreclosure procedure to reimburse
creditors and the Hotel will cease to exist.
Time (in years) 2.3 The foreclosure proceedings will take approximately 27 months in Djibouti. This estimate
includes summoning Mirage, the foreclosure proceedings and the organization of the sale by
the bailiff. The estimate also takes into account that there can be challenges during the
procedure.
Cost (% of 11.0 Foreclosure proceedings will cost approximately DJF 3,909,862 (11% of the value of Mirage).
Page 56
estate) The fees of bailiffs in charge of the public sale (7%) and lawyer fees (4%) constitute the main
Details – Resolving Insolvency in Djibouti
Indicator Answer Explanation
Proceeding foreclosure Mirage cannot repay the money owed to BizBank, so the bank will start foreclosure
proceedings at the First Instance Court. At the end of the procedure, the hotel building will
be sold and BizBank will obtain payment.
Outcome piecemeal sale Mirage's assets will be sold piecemeal after the foreclosure procedure to reimburse
creditors and the Hotel will cease to exist.
Time (in years) 2.3 The foreclosure proceedings will take approximately 27 months in Djibouti. This estimate
includes summoning Mirage, the foreclosure proceedings and the organization of the sale by
the bailiff. The estimate also takes into account that there can be challenges during the
procedure.
Cost (% of 11.0 Foreclosure proceedings will cost approximately DJF 3,909,862 (11% of the value of Mirage).
estate) The fees of bailiffs in charge of the public sale (7%) and lawyer fees (4%) constitute the main
components of the procedure.
Recovery rate (cents on the 37.5

dollar)
Details – Resolving Insolvency in Djibouti – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 9.0
Commencement of proceedings index (0-3) 2.0
What procedures are available to a DEBTOR when commencing insolvency (c) Debtor may 0.5
proceedings? le for
reorganization
only
Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only
What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature
Management of debtor's assets index (0-6) 5.5
Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0
goods and services to the debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0
contracts?
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Page 57
dollar)
Details – Resolving Insolvency in Djibouti – Measure of Quality
Answer Score
Strength of insolvency framework index (0-16) 9.0
Commencement of proceedings index (0-3) 2.0
What procedures are available to a DEBTOR when commencing insolvency (c) Debtor may 0.5
proceedings? le for
reorganization
only
Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5
creditor may le
for liquidation
only
What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0
insolvency framework? generally unable
to pay its debts
as they mature
Management of debtor's assets index (0-6) 5.5
Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0
goods and services to the debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0
contracts?
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0
after commencement of insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5
pre-
commencement
creditors,
secured or
unsecured
Reorganization proceedings index (0-3) 0.5
Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
Does the insolvency framework require that dissenting creditors in reorganization No 0.0
receive at least as much as what they would obtain in a liquidation?
Are the creditors divided into classes for the purposes of voting on the reorganization No 0.0
plan, does each class vote separately and are creditors in the same class treated
equally?
Creditor participation index (0-4) 1.0
Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment of the insolvency representative? Page 58
Creditor
Doing participation
Business 2018index (0-4)
Djibouti 1.0
Does the insolvency framework require approval by the creditors for selection or No 0.0
appointment of the insolvency representative?
Does the insolvency framework require approval by the creditors for sale of substantial No 0.0
assets of the debtor?
Does the insolvency framework provide that a creditor has the right to request No 0.0
information from the insolvency representative?
Does the insolvency framework provide that a creditor has the right to object to Yes 1.0
decisions accepting or rejecting creditors' claims?
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization),
the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as
“no practice”.
Labor Market Regulation

Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of
economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business. Detailed data collected on labor market regulation are available on the Doing Business website
(http://www.doingbusiness.org/data/exploretopics/labor-market-regulation).
The most recent round of data collection was completed in June 2017. See the methodology for more information.
Hiring To make the data comparable across economies, several assumptions

(i) whether xed-term contracts are prohibited for about the worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of xed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of
work experience.
Working hours
- Is a full-time employee.
(i) maximum number of working days allowed per
- Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest
and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second
as men; (v) length of paid annual leave. largest business city.
- Has 60 employees.
Redundancy rules
- Is subject to collective bargaining agreements if such agreements cover
(i) whether redundancy can be basis for terminating
more than 50% of the food retail sector and they apply even to rms that
workers; (ii) whether employer needs to notify
are not party to them.
and/or get approval from third party to terminate 1
- Abides by every law and regulation but does not grant workers more
redundant worker and a group of 9 redundant
bene ts than those mandated by law, regulation or (if applicable) collective
workers; (iii) whether law requires employer to
bargaining agreements.
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.
Job quality
(i) whether law mandates equal remuneration for
Page 59
work of equal value and nondiscrimination based on
the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as
“no practice”.
Labor Market Regulation

Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of
economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing
business. Detailed data collected on labor market regulation are available on the Doing Business website
(http://www.doingbusiness.org/data/exploretopics/labor-market-regulation).
The most recent round of data collection was completed in June 2017. See the methodology for more information.
Hiring To make the data comparable across economies, several assumptions

(i) whether xed-term contracts are prohibited for about the worker and the business are used.
permanent tasks; (ii) maximum cumulative duration
of xed-term contracts; (iii) length of the The worker:
probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of
work experience.
Working hours
- Is a full-time employee.
(i) maximum number of working days allowed per
- Is not a member of the labor union, unless membership is mandatory.
week; (ii) premiums for work: at night, on a weekly
rest day and overtime; (iii) whether there are The business:
restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy).
day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest
and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second
as men; (v) length of paid annual leave. largest business city.
- Has 60 employees.
Redundancy rules
- Is subject to collective bargaining agreements if such agreements cover
(i) whether redundancy can be basis for terminating
more than 50% of the food retail sector and they apply even to rms that
workers; (ii) whether employer needs to notify
are not party to them.
and/or get approval from third party to terminate 1
- Abides by every law and regulation but does not grant workers more
redundant worker and a group of 9 redundant
bene ts than those mandated by law, regulation or (if applicable) collective
workers; (iii) whether law requires employer to
bargaining agreements.
reassign or retrain a worker before making worker
redundant; (iv) whether priority rules apply for
redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii)
severance payments due when terminating a
redundant worker.
Job quality
(i) whether law mandates equal remuneration for
work of equal value and nondiscrimination based on
gender in hiring; (ii) whether law mandates paid or
unpaid maternity leave; (iii) length of paid maternity
leave; (iv) whether employees on maternity leave
receive 100% of wages; (v) availability of ve fully paid
days of sick leave a year; (vi) eligibility requirements
for unemployment protection.
Details – Labor Market Regulation in Djibouti
Answer
Hiring
Page 60
Fixed-term contracts prohibited for permanent tasks? Yes
days of sick leave a year; (vi) eligibility requirements
for unemployment protection.
Details – Labor Market Regulation in Djibouti
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? Yes
Maximum length of a single xed-term contract (months) 12.0
Maximum length of xed-term contracts, including renewals (months) 24.0
Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0
Ratio of minimum wage to value added per worker 0.0
Maximum length of probationary period (months) 2.0
Working hours
Standard workday 8.0
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 0.0
Premium for overtime work (% of hourly pay) 0.0
Restrictions on night work? No
Whether nonpregnant and nonnursing women can work the same night hours as men Yes
Restrictions on weekly holiday? No
Restrictions on overtime work? Yes
Paid annual leave for a worker with 1 year of tenure (working days) 30.0
Paid annual leave for a worker with 5 years of tenure (working days) 30.0
Paid annual leave for a worker with 10 years of tenure (working days) 30.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 30.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party noti cation if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? No
Third-party noti cation if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? No
Retraining or reassignment obligation before redundancy? No

Page 61
Third-party
Doing approval
Business 2018if nine workers are dismissed?
Djibouti No
Retraining or reassignment obligation before redundancy? No
Priority rules for redundancies? No
Priority rules for reemployment? Yes
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3
Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3
Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0
Severance pay for redundancy dismissal for a worker with 5 years of tenure 0.0
Severance pay for redundancy dismissal for a worker with 10 years of tenure 0.0
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 0.0
Job quality
Equal remuneration for work of equal value? Yes
Gender nondiscrimination in hiring? Yes
Paid or unpaid maternity leave mandated by law? Yes
Minimum length of maternity leave (calendar days)? 98.0
Receive 100% of wages on maternity leave? Yes
Five fully paid days of sick leave a year? Yes
Unemployment protection after one year of employment? No
Minimum contribution period for unemployment protection (months)? n.a.
Business Reforms in Djibouti

In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing
Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms
inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Djibouti
implemented since Doing Business 2008.
= Doing Business reform making it easier to do business. = Change making it more di cult to do business.
DB2018
Starting a Business: Djibouti made starting a business less costly by exempting new companies from professional license fees
and reducing fees to register a business and publish the notice of commencement.
Dealing with Construction Permits: Djibouti made obtaining a construction permit easier by reducing the cost of concrete
inspections and by implementing decennial liability for all professionals involved in construction projects.
Registering Property: Djibouti made registering property easier by increasing the transparency of the land administration
system.
Page 62
Getting Credit: Djibouti improved access to credit information by adopting a law that creates a new credit information system.
Minimum contribution period for unemployment protection (months)? n.a.
Business Reforms in Djibouti

In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing
Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms
inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Djibouti
implemented since Doing Business 2008.
= Doing Business reform making it easier to do business. = Change making it more di cult to do business.
DB2018
Starting a Business: Djibouti made starting a business less costly by exempting new companies from professional license fees
and reducing fees to register a business and publish the notice of commencement.
Dealing with Construction Permits: Djibouti made obtaining a construction permit easier by reducing the cost of concrete
inspections and by implementing decennial liability for all professionals involved in construction projects.
Registering Property: Djibouti made registering property easier by increasing the transparency of the land administration
system.
Getting Credit: Djibouti improved access to credit information by adopting a law that creates a new credit information system.
Protecting Minority Investors: Djibouti strengthened minority investor protections by requiring greater disclosure of
transactions with interested parties, strengthening remedies against interested directors, extending access to corporate
information before trial, increasing shareholder rights and role in major corporate decisions, clarifying ownership and control
structures and requiring greater corporate transparency.
DB2015
Dealing with Construction Permits: Djibouti made dealing with construction permits less time-consuming by streamlining the
review process for building permits.
DB2014
Starting a Business: Djibouti made starting a business easier by simplifying the company name search and by eliminating the
minimum capital requirement as well as the requirement to publish a notice of commencement of activities.
Getting Credit: Djibouti strengthened its secured transactions system by adopting a new commercial code, which broadens the
range of movable assets that can be used as collateral.
Resolving Insolvency: Djibouti made resolving insolvency easier through its new commercial code, which allows an insolvent
debtor to le for preventive settlement, legal redress or liquidation and sets out clear rules on the steps and procedures for each of
the alternatives available.
DB2012
Dealing with Construction Permits: Djibouti made dealing with construction permits costlier by increasing the fees for
inspections and the building permit and adding a new inspection in the preconstruction phase.
Trading across Borders: Djibouti made trading across borders faster by developing a new container terminal.
DB2010
Paying Taxes: Djibouti made paying taxes more complicated for companies by introducing a value added tax on the supply of
goods and services.
DB2009
Trading across Borders: Djibouti reduced documentation requirements for exporting and importing, and time for importing, by
improving port administration and eliminating some health and technical formalities.
DB2008
Registering Property: Djibouti made property registration faster by improving e ciency at the Service des Domaines.
Page 63
Trading across Borders: Djibouti made trading across borders easier by implementing an electronic manifest system.
Doing Business 2018
DB2008 Djibouti
Registering Property: Djibouti made property registration faster by improving e ciency at the Service des Domaines.
Trading across Borders: Djibouti made trading across borders easier by implementing an electronic manifest system.
Page 64

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Doing Business Report - Economy Profile Djibouti 2018

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Economy Profile

Economy Pro le of Djibouti

Getting credit Movable collateral laws and credit information systems

About Doing Business

About Doing Business

More about Doing Business (PDF, 5MB)

Ease of Doing Business in Middle East & North DB 2018 Rank

DB 2018 Distance to Frontier (DTF)

56.72: Regional Average (Middle East & North Africa)

56.22: Egypt, Arab Rep. (Rank: 128)

49.58: Djibouti (Rank: 154)

47.77: Ethiopia (Rank: 161) Page 3

Ease of Doing Business in Middle East & North DB 2018 Rank

DB 2018 Distance to Frontier (DTF)

56.72: Regional Average (Middle East & North Africa)

56.22: Egypt, Arab Rep. (Rank: 128)

49.58: Djibouti (Rank: 154)

47.77: Ethiopia (Rank: 161)

22.87: Eritrea (Rank: 189)

Rankings on Doing Business topics - Djibouti

Distance to Frontier (DTF) on Doing Business topics - Djibouti

Starting a Business Page 4

What the indicators measure Case study assumptions

Legal form Limited Liability Company

Paid-in minimum capital requirement DJF 0

City Covered Djibouti Ville

Middle East & OECD high

Procedure – Men (number) 7 7.7 4.9 1.00 (New Zealand)

Time – Men (days) 14 18.6 8.5 0.50 (New Zealand)

Procedure – Women (number) 7 8.4 4.9 1.00 (New Zealand)

Time – Women (days) 14 19.3 8.5 0.50 (New Zealand)

DB 2018 Distance to Frontier (DTF)

92.85: Oman (Rank: 31)

84.53: Egypt, Arab Rep. (Rank: 103)

83.38: Djibouti (Rank: 115)

82.05: Regional Average (Middle East & North Africa)

68.43: Ethiopia (Rank: 174)

50.60: Eritrea (Rank: 184)

Figure – Starting a Business in Djibouti – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

Doing Business 2018 Djibouti

Figure – Starting a Business in Djibouti – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

Cost (% of income per capita)

Details – Starting a Business in Djibouti – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

Doing Business 2018 Djibouti

Details – Starting a Business in Djibouti – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

The ODPIC is also in charge of the publication of the notice of

Entrepreneurs must go to the Service des Patentes to obtain a license, using

Companies from class 5 to 8 are exempted from paying the professional

Applies to women only.

Dealing with Construction Permits

What the indicators measure Case study assumptions

Dealing with Construction Permits

What the indicators measure Case study assumptions

Standardized Warehouse Page 10

Estimated value of warehouse DJF 16,957,260.40

City Covered Djibouti Ville

Middle East & OECD high

Procedures (number) 17 16.2 12.5 7.00 (Denmark)

Time (days) 111 132.1 154.6 27.5 (Korea, Rep.)

Cost (% of warehouse value) 5.4 4.3 1.6 0.10 (5 Economies)