COUNTRY RISK ASSESSMENT FOR THE UNITED KINGDOM

Hussein Ahmad Bataineh, Sulaiman Humaid Al Harthy, Raqiya Ali Al Balushi, Ahmad Omar Albesisi

Abstract


The study aims to make risk assessment of investment in the United Kingdom so as to open a new branch of a big bank in United Arab Emirate. The findings of the risk assessment recommended to establish the new branch in the UK basing on diverse reasons. Firstly, according to the international monitory fund report, the GDP of the United Kingdom will increase from the financial year 2018 through the financial year 2022. The economy will advance and widen. Plus, the growth in GDP indicate that all sector in economy including the banking sector will also develop. Secondly, according to the UK office Budget Responsibility (ORB) projections, the UK interest rate will rise in the coming four financial years that will surely be reflected on the increase of profitability. Thirdly, the inflation rate in the UK will decrease in the coming four years, which has positive effects on the banking sectors because inflation rate leads to low costs of products and services. Additionally, the GDP per capital of the UK rise in the coming four fiscal years which is healthy for banking sector to be highly productive and profitable. More importantly the population of the UK will increase in the coming four years, which is favourable to the banking sector this means that the number of will increase. Moreover, the bank of England allows all the commercial banks in the country. Another reason that encourage investing in the UK is the advancement in technology. Besides, the most important reason encourage investment in the UK is the country’s system of governance that is a democratic system of leadership that does not hinders private investors unless they violate law. The researchers conclude that they recommend the decision to open the new bank in the UK. Since the benefits supersede the costs.

JEL: E22; F21; G21

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country risk assessment, investment, economic profile

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v4i4.1013

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