RIYADH: Saudi Arabia has kept its position as one of the least risky places to do business in the Middle East and Africa despite a deterioration in the region, according to a new report.
The GlobalData Country Risk Index revealed that Saudi Arabia has maintained its third ranking as the lowest-risk country in the region during the first quarter of 2023 when compared to the final of 2022.
Released by the London-based data and analytics firm GlobalData, the index is formulated to help firms prepare their global business strategies based on historical developments in an economy coupled with their future expectations as well.
By assessing various qualitative and quantitative factors, the index provides an analysis of the potential risks and threats that may impact firms or their investments in a particular country.
The MEA region stands as the highest-risk region in the world, with a score of 54.4 out of 100 in the first quarter of 2023, against a global score of 44.9, due to various factors including oil production cuts and unstable geopolitical situation in some countries.
The risk score for the MEA region as a whole stood at 54.3 out of 100 during the final quarter of 2022, the report highlighted.
The UAE retained its status as the lowest-risk country while Qatar and Kuwait claimed fourth and fifth regional ranks, respectively, in the list of top 10 nations in the MEA region. Of this, Bahrain maintained its ninth position on a regional level.
The report said the GCRI risk score in the MEA region has been increasing for the last six quarters until the first quarter of 2023, due to factors such as unstable growth, subsidies, and state-owned companies operating at a loss.
It added that there have also been some external challenges such as interest rate hikes and price surges – the factors that continue to put pressure on public finances in low and middle-income countries, except for the Gulf Cooperation Council.
Established in 1999, GlobalData’s mission is to help its clients in decoding the future – by leveraging data, expert analysis, and top-notch solutions in an attempt to be more successful and innovative.
