Country risk is an important issue for international investors to consider. As your firm is looking to invest in the Middle East, use the @rating resource to identify and present the country ratings for each of the following Middle Eastern countries: Egypt, Israel, Lebanon, Qatar, and the United Arab Emirates. Use the globalEDGE™ site {http://globalEDGE.msu.edu/} to complete the following. Which country would you recommend for investment? Justify your position thoroughly. Please introduce a relevant current events story from the news, provide a link to the story, a proper citation and your comments, summary or interpretation of the story and its relevance to our studies this week.
Expert Answer
1. Egypt -122/190
2. Israel – 52/190
3. Lebanon – 126/190
4.Qatar -83/190
5. UAE – 26/190
Though the GDP of Qatar is highest among all the countries mentioned above but it is United Arab Emirates which provides the most conducive environment for starting of business by an outsider.
In UAE the taxes are low and there are clear laws which takes less time to set up a business. However, the rule that local partnership of 51% stake still holds. However, the government of UAE has been visionary and has been pro-investment and Pro-business. Though oil business still is the maximum revenue earner, the government has realised the need for diversifictaion. Dubai is a hot tourist destination as well as commercial hub. Other Emirates offer a good potential for investment for foreign companies.
Further information about investment in UAE can be found by visiting the link http://www.mondaq.com/x/96504/Economic+Analysis/Dubai+A+Hub+For+Foreign+Investment
Here all the details are given and also various efforts made by the United Arab Emirates’s government to attract more foreign investment. The procedure for forming of a company in UAE is also mentioned. The story/ article also gives an idea of the future plan of the government to make UAE a more attractive investment destination.
The article genearlly covers Dubai, but in gives an fair idea about the investment environment of the whole country. The decision of Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE exempting the foreign companies from fine for not renewing their licence on time and giving them more grace period to do so.This shows an positive intent of the administrators of the country to attract more foreign investment by easing down varios rules and restrictions.
It is clear from the above analysis that UAE is definitely the best countries among the above mentioned countries of Middle East for any kind of investment by an outsider.