Teeside University Dissertation: Risk Management in Middle East

This dissertation, submitted to Teeside University, investigates risk management strategies for investors in the Middle East. It begins with an introduction outlining the research's background, aims, objectives, and structure. A comprehensive literature review examines the concept of risk management, theoretical and empirical frameworks, and its impact on Middle Eastern investors. The research methodology chapter details the interpretive research philosophy, inductive approach, and secondary data collection methods used. The findings, based on analysis of relevant articles, highlight political and economic risks faced by investors, as well as opportunities for marketing and growth. The dissertation concludes with recommendations for managing risk, emphasizing portfolio diversification and strategic investment decisions. The study aims to provide valuable insights for academics, investors, and practitioners in the field.

Running head: DISSERTATION
Risk Management for investors in the Middle East
Student Details

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Abstract
The primary objective of this study is to evaluate risk management for Middle East investors.
There are different chapters of research such as introduction, review of literature, research
methodology, findings, conclusion and recommendations. The first chapter demonstrates
backgrounds of research, aim, and objectives of the research, project scope as well as,
dissertation structure. The second chapter is a literature review that contains different secondary
sources such as journal articles, academic publications, and online websites.
The research methodology is the third chapter that contains different techniques, and methods.
Interpretive research philosophy is used for gathering subjective information about research
issues. The inductive research approach is implemented for theoretical data. Along with this, the
method of secondary data collection would be used for collecting the data regarding secondary
sources such as literature review, journal articles, and online websites. The content data analysis
method is applied to analyzing the collected data. It is found that there are different risks faced
by investors in the Middle East such as political risks and economic risk. It is also evaluated that
there are different opportunities may be obtained through investors such as marketing and
growth opportunities.

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Table of Contents
Abstract.......................................................................................................................................................2
Chapter 1: Introduction................................................................................................................................4
Introduction.............................................................................................................................................4
1.1. General background of research......................................................................................................4
1.2. The rationale for research significance............................................................................................6
1.3. Research aim and objectives............................................................................................................6
1.4. Research questions..........................................................................................................................6
1.5. Dissertation structure.......................................................................................................................7
Conclusion...............................................................................................................................................8
Chapter 2: Literature Review.....................................................................................................................10
2.1. Introduction...................................................................................................................................10
2.2. Meaning and Concept of Risk Management..................................................................................10
2.3. Theoretical Literature Review.......................................................................................................12
2.4. Empirical Literature Review..........................................................................................................15
2.5. Impact of International Risk Management: with reference to Investors in the Middle East................16
2.6. Strategies of International Risk management: with reference to Investors in the Middle East............18
Conclusion.............................................................................................................................................19
Chapter 3: Research methodology.............................................................................................................20
3.1. Introduction........................................................................................................................................20
3.2. Research Approach.............................................................................................................................20
3.3. Research Strategy...............................................................................................................................21
3.4. Research Design.................................................................................................................................22
3.5 Research Purpose...........................................................................................................................23
3.6 . Data Collection Method...............................................................................................................24
3.7. Sampling Procedure............................................................................................................................25
3.8. Data Analysis Methodology...............................................................................................................25
3.9. Ethical Consideration.........................................................................................................................26
Chapter 4: Findings...................................................................................................................................28
Introduction...........................................................................................................................................28
Article 1: Middle East investors seek to hedge risk through portfolio diversification, Lombard Odier
says........................................................................................................................................................28
Article 2: The Risks and Opportunities of Doing Business in the Middle East......................................30
Article 3: UAE investors are choosing investment portfolios that align with their risk levels: Study....38
Conclusion.............................................................................................................................................40
Chapter 5: Conclusions and recommendations..........................................................................................41
Reflective Statement..................................................................................................................................48
References.................................................................................................................................................50

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Research title
The title of this research is to address Risk management for investors in the Middle East.
Chapter 1: Introduction
Introduction
This chapter will present the general background of investigation. It also depicts the rationale for
significance of research. Furthermore, it illustrates the research aim and objectives, and research
questions. In the last, this research chapter presents the dissertation structure for the study.
1.1. General background of research
In a global economy, stagnation issue and political risks are highly faced by investors, but it
could be improved by investing in Dubai Financial Market (DFM). Through highly managing
investments as well as, investing into a range of diverse asset classes, investor’s manager is
competent to react towards market transformations and reducing risks. Investors should also
regular contact to clients for making sure that their portfolio links with their comfort level of risk
as well as, only make judgements to long-standing vision in brains (Wahyudi, et. al., 2015).
In the Middle East, investors are increasingly hedging the risk via portfolio diversification,
venturing into the private equity investment among global economic slowdown as well as, Brexit
uncertainty as well as, trade war. Along with this, Middle East investors can make diversification
on all asset classes as well as, are interested in private equity as it is booming in a good way in
terms of diversifying the risks (Batten, et. al., 2017).
The tariff war among two major global economies creates major risks for investors due to
geopolitical tensions, disorderly Brexit, and increasing global indebtedness. In addition, the
global economy is at a subtle moment among increasing trade tensions, high extents of debt as
well as, uncertainty over Brexit (Kolsi, and Grassa, 2017). In addition to this, the international

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monetary fund has declined its potential international growth for the year of 2019 and 2020. The
international economy is also expanding by 3.5% in the year of 2019 and 3.6% year after, but 0.2
and 0.1 percentage declines in the potential fund (Davies, et. al., 2015).
Investors can invest globally for increasing the diversification as well as, the total return of their
investment. Along with this, diversification benefits are attained by including low correlation
assets of the global market, which serves for declining the overall risks regarding the portfolio.
But, the advantages of investing globally are widely accepted theories as well as, several
investors are uncertain to invest abroad (Carafa, Frisari, and Vidican, 2016).
Risk management is becoming cornerstone as well as an essence for all investment and financial
decision. It may create every day in the financial world. Along with this, sound investments as
well as, disciplined trading are always essential for implemented in the context of well-defined
risk management structure. It entails addressing the wider range of marker, operational kinds of
risks, accessing them as well as, seeking different techniques for avoiding these risks to provide
benefit to the company under review together with, its shareholders (Duan, et. al., 2018).
Risk management has required a procedure with clear intention, value-added results, well-
designed practices, and reliable inputs. In the Middle East, investors should focus on risk
management procedure such as assessment/evaluation, quantification, sourcing as well as,
monitoring of risks (Naifar, 2016). It is analyzed that for most types of activity, the risk could be
obligatory as long as, result is vague. Hence, consideration of risk as well as, its handling is core
management regulation. All major company decision entails selection of how much risk a
business can take as well as, how best for managing these risks (Mersni, and Ben Othman, 2016)
Although, Middle Eastern economies as well as, financial markets may have diversified in
current times, then the best mode for increasing the traction in the area is buying exchange-

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traded funds (Rauf, 2016). When a company is looking towards the prominent illustrations like
WisdomTree Middle East Dividend Fund then, investors would focus on broad access to largest
nations in the region such as UAE (24%), Qatar (24%) as well as, Kuwait. These funding are
also reflecting on new-found diversity of Middle Eastern economies that covers thriving as well
as, growth sectors such as telecommunications, and financial industry. Main aim of this
investigation is to identify strategies for managing risk for investors in the Middle East
(Sadgrove, 2016).
1.2. The rationale for research significance
This research is beneficial for academicians for understanding the conceptual understanding
regarding risk in the Middle East. It is also advantageous for investors to gain knowledge about
the challenges faced by them in managing the risk in the Middle East. It is also significant for
practitioners to comprehend the strategies for managing the risk for investors in the Middle East
(Hammami, and Boubaker, 2015).
1.3. Research aim and objectives
Aim of this investigation is to address risk management for investors in the Middle East.
Throughout the application of below objectives, the researcher will achieve main aim of the
investigation:
RO1: To explore conceptual understanding about risk in the Middle East
RO2: To address the challenges faced by investors to manage the risk in the Middle East
RO3: To identify the strategies for managing the risk for investors in the Middle East
1.4. Research questions
The given below research questions are responded through this research:
RQ1: What are the conceptual understandings of risks in the Middle East?

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RQ2: What are the challenges faced by investors to manage the risk in the Middle East?
RQ3: Which strategies could be used for managing the risk for investors in the Middle East?
1.5. Dissertation structure
For attaining this investigation into a methodological way, given structure will be applied in this
research:
1.5.1. Introduction
It is an initial chapter of research that involves research topic, research aim, as well as,
objectives, background information, research questions as well as, significance of research for
developing knowledge as well as, healthy base associated with research concerns. This chapter
also facilitates the depth knowledge about research limitation that researcher faces for
accomplishing this investigation. Overall, data of this chapter will be advantageous for the
researcher to assess way of investigation as well as, address the concerns of investigation
effectively (Al-Akra, Abdel-Qader, and Billah, 2016).
1.5.2. Literature Review
The second chapter of this research would be related with literature review that could be
performed to identify research concern with applying several theories. By using this chapter,
researcher will be competent for involving the assessment of current understanding of research
topic as well as, assesses that at what extent, it has been accessed till date (Rauf, 2016). In such
case, journals and articles are reviewed that also supports in creating the theoretical knowledge
regarding the investigation concerns. It is advantageous for researcher to address gap in
understanding as well as, develops the base in terms of implementing the primary investigation
techniques (Hammami, and Boubaker, 2015).
1.5.3. Research Methodology

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Under this chapter, researcher evaluated the different techniques, tools, as well as, methods for
accomplishing the research in methodological as well as, ethical manners. Along with this,
different research approaches, purposes, research design, sampling, data collection tools, and
data assessment techniques are justified as well as, described for making sure the reliability with
validity of results. In this way, research methods are justified according to topic as well as,
objectives of research, which is significant in terms of attaining valid results (Sadgrove, 2016).
1.5.4. Data Analysis and Findings
In this research, this chapter is effective to conduct significant evaluation of gathered data. This
chapter provides significant channel for researcher in the context of classifying the gathered
information as well as, assessing them with respect to each objective (Duan, et. al., 2018). In
such a manner, it supports an investigator for assessing and arranging the information logically
through an appropriate data analysis technique. Through this, researcher makes competent to
depict data in methodological manners for creating valid outcomes (Naifar, 2016).
1.5.5. Conclusion and Recommendation
This is last chapter of research that creates competent researcher to conclude overall research as
per findings. This chapter also developed link among research objectives and findings for
creating reliable and valid conclusions. It facilitates recommendation associated to strategies for
managing the risk for investors in the Middle East. In the last, this chapter would be effective for
evaluating practical implications regarding instructing future investigators for their investigations
(Carafa, Frisari, and Vidican, 2016).
Conclusion
From the above interpretation, it can be concluded that In the Middle East, investors are
increasingly hedging the risk via portfolio diversification, venturing into the private equity

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investment among global economic slowdown. It can be summarised that the aim of research is
to assess the risk management for investors in the Middle East. Furthermore, dissertation
structure is used for systematically conduct the research.

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Chapter 2: Literature Review
2.1. Introduction
International business is a term that is used when the individual or group plan to do or currently
doing business outside the boundaries of their domestic country. The term international business
is developed from a very long time; however, it is becoming popular from the last few years
only. There are many challenges and risk involved in conducting business beyond domestic
boundaries. Risk management becomes very crucial element when the business is conducted in
international boundaries (Dannemiller et al., 2017). This research study is aiming towards
identifying the level of risk involved for investors in doing their business in the international
boundaries of the Middle East. This chapter based on in-depth research about the elements of this
research study.
2.2. Meaning and Concept of Risk Management
Risk is a said to be a situation that involves exposure of individual to danger or dangerous
situation. It is the confrontation of an individual or a group of individuals with the harm, loss or
danger. It can be of any type like related to mental loss, physical loss or financial loss. In
businesses, mainly risk is related to financial losses (Hoesli & Macgregor, 2014). It is important
for every business to manage the presence risk in an effective manner to avoid or reduce the
amount of loss involved. In this management of risk is done with respect to investments made by
individuals in business or the middle east or spreading their own business in the middle east, it
basically talks about investment risk involved in international businesses.
2.2.1. International Business and Challenges
International business is a process, which involves trading of various goods and services across
national borders to other countries. It involves trading or exchange of services, goods,

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knowledge, capital, etc from domestic nation to international countries. This is done with the
view of making profits by charging efficient prices from emerging economies of foreign
countries.
According to the article of Dan V. Caprar and others, (2015), the influence of cultural differences
as well as legal differences on international business is investigated. They addressed many issues
faced in international business; however, their main critiqued issue is challenges faced by
businesses in spreading their business internationally. They analyzed many approaches and
theories in order to understand various challenges. They also recommend their own directions for
handling their international business challenges (Caprar et al., 2015).
The challenges and opportunities involved in international businesses in cooperatives are
analyzed in the article written by Ignacio Bretos and others, (2016). According to this article,
there is a link between challenges and opportunities present in the global economy. The article
analyzed theoretically the impact of cooperative international business challenges and
opportunities on global economic development. It analyzed three components that are the
strength and weakness of cooperatives in international businesses. Second is the promotion of
local culture and community by these corporations in international businesses. The challenges
and opportunities involved in businesses done by corporate internationally. The research is based
on secondary data hence it identified the research gap that includes the suggestion of future
research that can be based on primary analysis with framing hypothesis that can be tested with
the help of inferential analysis (BRETOS & MARCUELLO, 2016).
2.2.2. International Business Risk Management
International risk management is a concept that deals with the involved risk in doing business
beyond national boundaries. The risk can be related to many things or of many types; however,

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this research study mainly talked about the risk involved in financial investments made by
investors in international businesses or spreading their business in international boundaries
(JISC, 2014).
According to the article written by Jason Webb Yackee, (2014), there are some operational and
conceptual difficulties involved in the measurement of potential risk. This risk is related to
internal businesses and laws relating to them. It is a theoretical study, which only analyzed the
previously established theories and concepts of risk and uncertainties. It also provided some
strategies and a model to reduce the impact of uncertainty on international businesses (Yackee,
2013-2014).
According to the article of Guy L. F. Holburn and others, (2010), the political, as well as policy-
related risk in conducting business internationally with reference to global electric power
generation industry, is discussed. This talk about the barriers involved in international businesses
as well as policies related to environmental factors of the business. This article is taken, weak
political factors of domestic business as well as strong political factors, when the business took
on international panels. This makes them introduce various strategies in overcoming the political
barriers present in international boundaries. Their hypothesis identified the positive impact of
political risk on the longevity of the electric power generation industry in international standards
(Holburn & Zelner, 2010). In this no specific organization is taken, however, the focus is paid on
the whole electricity-generating power industry. In future research, scholars can fill this research
gap.
2.3. Theoretical Literature Review
In order to understand the phenomenon or concept, the theories are formulated. Theories are
formulated after well-defined research is conducted. Theories are developed in order to identify

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the previously established knowledge or identify its broader framework. Every research is
conducted with the motive of developing a theory, model or principles, which can define that
research question in the future and make it easy to understand. This type of research review is
known as a theoretical review of literature, where theories are analyzed in the same context of
research. In given lines, two main theories in the context of the current research study are
reviewed.
2.3.1. International Trade Theory
International trade theory is the theory that helps in understanding international trade in a more
positive and effective way (Pastor & Stambaugh, 2010). Experts in the field of international trade
develop this theory and since then various researchers add something in it as well as identify the
solutions for their own international trade-related problems with the help of this theory.
According to the article by Andreas Hoefele and others, (2016), the organization that trade
between various international trades at that time they choose to opt for different trade payment
options. This article is all about the differential in payment options present in international trade
and the available option are analyzed with the help of trade theory. This article formulates the
hypothesis as well as analyzed the result of the data taken on the firm level in large developing
countries. The profits are made when the enforced currency of international trade countries of the
business is low as compared to home country currency. This allows the company to make large
profits in the long run. It is based on the theory of international trade and its various concepts
(Hoefele et al., 2016).
There is another article that is written by Dalia Marin and others, (2014), which explains the
internal hierarchal distribution of Melitz and Ottaviano model with reference to international
trade. The theory developed in this research article mainly focuses on the decentralization of the

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work across the firms. In international trade, the conflict arises between CEO and managers with
relation to the actions and power hence the decentralization is considered to be a good approach
in international trade. The authors tested the international trade theory with this context and
identified the results are persistent with the prescribed mode.
An analysis of risk management in international trade, investments this theory and the research
gaps from the article can be helpful for Middle East business when they plan to conduct business
on international platforms (Marin & Verdier, 2014).
2.3.2. Decision-Making Theory
The process of decision-making is very crucial from the point of view of business in domestic as
well as international boundaries. Decision-making is the process that consists of actions that
together helps in making effective decisions for a particular thing. Every decision making
concludes to a particular decision after going through various alternative decisions relating to the
particular situation (Reilly & Brown, 2011).
According to Mark S. Schwartz, (2016), decision-making must be done ethically in order to
avoid unethical situations in the future. The paper discussed Ethical decision-making (EDM)
models. Paper claims that these models with various theoretical perspective conflict with each
other. In order to address this situation, the author of this paper proposed a revised model for
EDM, which has the potential to bridge the gap between the conflicting situations of various
EDM models. The proposed model is called Integrated Ethical decision making. The limitation
and recommendation of this paper suggest that the proposed model is not that vast to cover
bridge gaps of all EDM models, hence future study can focus on a broader revised model
(Schwartz, 2016). There are other studies also which relate the decision-making theory with
international relations in businesses. In the book of A. Mintz, (2016), the integrated approach and

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cognitive rational theory of decision-making are analyzed with the help of international or
foreign policies. This can help in deciding according to the policies of a foreign nation in which
the individual is preparing to invest (Mintz, 2016). This theory can help in making a rational
decision regarding the investment decisions made by investors in the middle east as well as can
help in analyzing the risk factor present in this decision-making the process.
2.4. Empirical Literature Review
International investment is the type of investment that an individual or an organization
undertakes in a country other than its domestic country. International investment is beneficiary in
many cases; however, it is not safe as well. It involves various types of risks such as the risk of
economic factors, competition, political factors, the financial condition of the country, the type
of investment and the thing in which the person is investing (Sharpe, 2011). These measures in
together with some other international measures also, facilitate the investee to make profits,
however with an immense amount of risk-taking.
According to the book of Charlotte H. Bank, (2017), the main risk that any investor faces in
international boundaries while making the desired investment is the political risks. These risks
are related to the factors related to the laws, policies, and legislatures of that country related to
the investment made by the individual. Every country has their own rules and legislations to
monitor those rules, hence it becomes difficult sometimes for investors to invest in such
countries, which have some hidden regulations, which in future may harm investor financially.
This book also talks about the political measures to be considered before making international
investments as well as talks about the factors that help in measuring the political risk involved in
international investments (Brink, 2017).

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Apart from political factors, other factors may involve risk in international investments made by
investors. It is important for any investor to look for all of these factors and decide accordingly.
The investment that an investor is planning to make outside its domestic boundaries needed to be
thoroughly checked and analyzed before making any investment. It is important as the
investment may involve risk related to finance or physical property of the investor. According to
the research paper of Yan Bai and others, (2012), the financial liberation helped in ensuring the
measures against some investment risks. Due to this, the countries have shared the financial risk
factors among them, which made the risk involved in international investment lower in degree. It
must be controlled by the official parameters of the countries both domestic and International.
Due to the liberalization of risk the default risks factor is yet present in every international
country. The investor is suggested to follow both international as well as default risk involved in
international investments (Bai & Zhang, 2012).
This empirical literature review helped in analyzing the relation of risk management with
international investments. For this purpose, some articles and books are reviewed above. It can
be inferred from those researches that the risk factor in international investments is a very crucial
one, as it can harm the investment in drastic ways. In the next section, the risk management in
international investments by investors is analyzed with special reference to an investment in
Middle East countries.
2.5. Impact of International Risk Management: with reference to Investors in the Middle
East
The risk involved in making investments in the countries of the Middle East is analyzed in this
research. The Middle East is the combination of countries that are situated in the transcontinental
region of Western Asia, Turkey, and Egypt. South Arabia is considered the geographically

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largest nation in the Middle East and Bahrain is considered as the smallest nation. The Middle
East consists of major nations such as Sudan, Saudi Arabia, Turkey, Ethiopia, Libya, etc. These
nations are not that globalized in their operations, hence will not allow easily any foreign
investor to invest in their country.
According to Kamel Mellahi and others, (2011), many countries of the Middle East are focusing
on transforming their economy into globalized. They now are starting to provide entry to many
international organizations in their nations, however, there are still some strict regulations those
MNCs have to follow in order to invest or expand their business in Middle Eastern Countries.
The paper discussed some challenges as well as opportunities present in Middle Eastern
countries with reference to international investments that the investors can make. Paper also
provided some measures to be taken into consideration by the investor while investing
internationally (Mellahi et al., 2011).
There is another paper, which is written by Tidiane Kinda and others, (2011), talks about the
investment decisions as well as firm’s productivity when it chooses to invest in Middle East
countries as well and in North Africa. The paper is related to investment decision related to the
manufacturing of the products. This decision of international investment is compared with the
investments made in 17 other developed nations. The middle-income status of Middle East
economies is talked about by considering the risk involved in the investment decisions that can
be made by the investor in the long run. This also highlights the investment climate deficiencies
that may affect the production quality of infrastructure, labor force related factors and access to
finance. The paper suggested the specified dimension of investment climate deficiencies, which
can help investors in investing in the Middle East as well as North African markets with
effectively dealing with the risk factors (KINDA et al., 2011).

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With the research gaps and suggestions of these research papers, the investors can identify the
measures, which can be helpful for them in dealing with the international investment decision
that can avoid or reduce involved risks. In the next, section some articles that provide strategic
insights about the similar topic are discussed.
2.6. Strategies of International Risk management: with reference to Investors in the Middle
East
International investment decisions are complex as it involves risk and uncertainty of unknown
circumstances. The book was written by Frank J. Fabozzi and others, (2011), discussed various
steps as well as factors involved in investment decisions such as asset allocation, portfolio
construction, valuation and strategies helpful in managing the international investment risks. In
the book, some theories and practices are involved that in together help in managing
international investments and risk involved in them. With the help of these theories and
practices, the authors of the book tried to provide strategies for managing the involved risk in an
effective manner. This information can help investors in managing the risk involved in the
international investments that they are planning to invest in Middle Eastern countries (Fabozzi &
Markowitz, 2011).
Another research study focuses on providing detailed information about the international
investment decisions regarding Middle Eastern countries as well as discusses strategies to
overcome the risk involved in those decisions. Tim Romans and others, (2013), write the
research paper and apart from above-given information, the paper discussed the determinants of
foreign direct investment that can help the investors in making investments in Middle Eastern
countries. The investment decisions in all of these nations are not that easy as they have complex
entry as well as growth policies in their nations (Rogmans & Ebbers, 2013).

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Conclusion
It can be concluded from the literature review related to the impact of risk on investment
decisions made by individuals in Middle Eastern countries that the investors need to consider
various factors that are involved in international investment decisions. They must identify and
understand the related political, economical, etc laws and factors of the specific Middle Eastern
country in which they are focusing to invest in the future.

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Chapter 3: Research methodology
3.1. Introduction
Research Methodology is the process, which is used by researchers to first draw the outline of
data collection and various factors involved in it after that the collection of data take place
(Kumar, 2019). It is a combination of various types of steps, which in together helps the
researcher in collecting required information about data as well as its actual data collection. This
process of data identification and collection includes some elements such as research questions,
objectives, justification of research problem, sample design, research design, data collection
methods, data analyzing methods, etc. These elements of research can help the researcher in
gathering the more appropriate data as well as extracting important information in an effective
manner. It is important for every researcher to formulate its research methodology before
collecting its data as it makes the research process efficient as well as effective in nature. It helps
in solving all planning and operational problems of the particular research.
In the current study, the research methodology related to risk management factors influence the
investment decisions of investors while investing in Middle Eastern countries is analyzed.
Research methodology of this research study includes all the necessary information that a
researcher needs to identify before conducting its research in the actual field (Flick, 2015). This
chapter includes some elements of research methods like research and sample design, research
questions and objectives, the significance of the study, justification of the study, data analyzing
techniques and ethical consideration of data collection as well as utilization.
3.2. Research Approach
It is the approach, which is followed by the researcher in order to understand the motive of
choosing the required methods and approaches behind the research (Oyegoke, 2011). It is the

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combination of some steps, which define the way of research methodology of the respective
research study. Approaches are usually utilized to understand the way in which specific problem
is being addressed (Jackson, 2015). There are three types of research approaches, which are
deductive, inductive as well as an adductive research approach. In deductive research approach,
the hypothesis has formulated and tested in order to be rejected or accepted. In inductive research
approach hypothesis is not formulated however, the research is based on some research
questions, aims and objectives and those are accomplished with the help of observations,
according to that patterns are identified and at last, some theories are developed. Another type of
research approach is adductive research approach, which is used to explain or identify the result
of some facts, researches, observations which are left incomplete or in between.
Among those research approaches, the inductive research approach is used in this dissertation
study, as it does not involve the formulation of the hypothesis and its testing. It includes the
observation of some set theories, facts, principles, etc by researchers related to the risk involved
in investments in Middle Eastern countries (Cohen et al., 2013). This observation of related facts
and theories can help in understanding the pattern of the phenomenon and can be beneficial in
formulating the findings of the related topic. This approach can defiantly help in current
research.
3.3. Research Strategy
A mixture of well-defined steps in order to understand the plan of research by specifying
specific, thoughts, efforts is known as the strategy of the research. It is done in order to formulate
the plan to make the research process easy and smooth without the involvement of any unknown
facts (Bell et al., 2018). It is important for any researcher to formulate the research strategy in an
effective way; this can help the researcher in conducting research in an effective manner, with

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less time and cost involved than before. There are mainly four types of research strategies,
which are a case study, quantitative survey, qualitative survey, and action-oriented research. This
research strategy used in this dissertation is based on a qualitative survey (Archibald, 2015).
The research strategy of the current dissertation focuses on identifying research gaps at the very
first step. It is done by analyzing 3 articles. After that the recommendations, future parameters of
research, etc from each research paper are identified, then the research gap is formulated
according to it. The identification of the research gap helps in providing the way to respective
research study related to risk involved in investments made by investors in Middle Eastern
Countries as well as its management (Rogmans & Ebbers, 2013). The research strategy of this
dissertation also includes the identification of such researches that focuses on the fact of risk
management in international markets and well as in international investments (Brown, 2012). For
that purpose, the efficient research methodology is formulated and the observations of selected
researches are tested in order to understand the set pattern and to establish new theories
regarding the basis of this dissertation.
3.4. Research Design
This component of research methodology helps the researcher in conducting research in a more
reliable and effective manner. Research design is mainly the framework that combines various
steps of research in such a way that the research problem can be handled in an effective and
efficient manner (Mitchell & Jolley, 2012). It is considered a very important element of any
research study as the whole research is based on research design. Any researcher needs a good
research design as it has the potential in maximizing the reliability of collected data and applied
tests. Research designs are of many types some of them are, Explanatory Research Design,
Descriptive Research Design, Diagnostic Research Design, Experimental Research Design, etc.

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The research design of this dissertation is descriptive as it is not experimenting with any
elements as well as not diagnosing the elements. It is just describing the facts present as it is
related to the risk involvement and management in the investment decisions made by investors in
Middle Eastern countries. The descriptive research design can help the researcher in describing
the particular situation of investment and risk management (Michel‐Kerjan et al., 2012). This is a
theoretical type of research study that just deals with the theoretical perspective of the
dissertation. In this study, the data about the individuals as well as companies related to their
investments in Middle Eastern countries related to many industries are taken into consideration.
These data are analyzed with the help of set theories, concepts, facts and principles already
formulated with the context of risk management of international investments (Christensen et al.,
2011). This dissertation is also based on other research design that is qualitative research design
as it analysis the qualitative aspect of the particular topic.
3.5 Research Purpose
This component of research methodology helps a researcher in understanding the purpose of the
research. It is done in order to identify the importance of research for the researcher as well as
for the society or the nation. The purpose of the same research can be different for individuals
according to their desire and wants. It is just the statement, which provides the answer to the
question, why research is conducted (Merriam & Tisdell, 2015). The purpose of the research is
different from the research objectives, as the purpose is the overall reason of particular research
on the other hand objectives are the sub-goals of research that in together can fulfill the purpose
of the study.
In this dissertation, the research objectives are defined in order to attain the main purpose of the
research. The main purpose of this research study is to identify risk management with respect to

DISSERTATION 24
investments made by investors in Middle Eastern Countries or markets. This topic is chosen with
the view that investment decisions are very complex and when they needed to be made in
international boundaries, they become more complex. They involve a great amount of risk,
which needed to be managed in an effective manner (Haendel, 2019). This can be analyzed with
the help of understanding the pattern of the phenomena as well as applying test or observing the
details in order to get to the findings of the study, after that concluding accordingly. This helps
the researcher of this dissertation in collecting the research process of an effective purpose in a
smooth and efficient manner.
3.6 . Data Collection Method
In this component of research methodology, the collection of required data for the study is done
with the help of two methods primary as well as secondary data collection. In this, the data for a
research study is collected from any of the given sources or from both of them as it depends upon
the type of research design. The primary source of data collection is related to collecting the data
for the first time. It is fresh in nature, not touched by any other researcher for their study. This
can be collected with the help of a questionnaire, schedule, interviews, etc. on the other hand
secondary source of data is related with the data collected from the sources, which are already
used by researchers in their studies as well as some concepts, theories, and principles may be
formulated based on that (Best & Kahn, 2016).
This dissertation is based on secondary source of data collection as it took necessary data related
to study from various journal articles, books, newspapers, middle eastern country’s websites, etc.
it made use of already established theories, principles, etc about risk identification and
management in investment decision made by investors in the international market of Middle
Eastern Countries. For this purpose, the brilliant researches conducted by top scholars of this

DISSERTATION 25
field are taken into consideration, with the motive of making this dissertation in the best possible
and productive way.
3.7. Sampling Procedure
Sampling is a process in which from a large population a small sample is drawn in order to test
the characteristics of the population. In this process, the researchers predetermine the number of
observations that must be drawn from the population. The sampling of the observation of the
population can depend upon the type of study the researcher is conducting (Gentles et al., 2015).
The selection of observations from the population can be done in many ways such as probability
sampling and non-probability sampling, etc. In a secondary research study, it is expected to use
the non-probability sample, as it chooses the data for study by analyzing the present facts and the
details of data.
In this research, study researcher used the non-probability sampling method to collect the
required data by analyzing all efficient information about the given topic. It is done in order to
gain in-depth knowledge about the investment decisions made by investors in the Middle East as
well as risk identification and management of the same (Levy & Lemeshow, 2013). In order to
collect data by following non-probability sampling techniques, for this research three articles are
selected. These articles are based on the information related to the topic of this research as well
as present the results in an effective manner. The articles are analyzed in order to extract the
required information from them and relating it with the current topic.
3.8. Data Analysis Methodology
Data analysis as the name suggests is the process of data evaluation by using different tools
based on the type of data one is analyzing. This is done in order to make decisions according to
the extract the required information from the data and make decisions accordingly (Chambers,

DISSERTATION 26
2018). Data analysis can be done in two types that are descriptive data analysis as well as
inferential data analysis. Data analysis related to descriptive analysis just analyzes the facts
present, as it is, on the other hand, inferential data analysis test the hypothesis in order to prove it
right or wrong. It is important to identify the right method of identification as it helps in proving
more accurate and efficient results.
In this research study, the collected data that is three articles are analyzed with the help of
secondary sources such as articles and magazines. In this investigation, research has applied
content analysis because of the qualitative nature of research concern. Thus assessment
technique is implemented for assessing the causes and effect association among variables.
Summative content analysis is used for obtaining authentic data (Agresti & Kateri, 2014).
3.9. Ethical Consideration
The study is all about identification as well as management of risk while making investments in
Middle Eastern countries by a foreign investor. For this purpose, the data is collected by non-
probability sampling method in which three articles have selected and tested with the help of
descriptive analysis techniques. In this study, while conducting every process of research, the
steps taken by the researcher are followed by considering all the ethical measures. The
information taken from the selected articles as well as articles that are selected for data analysis
is used without breaking any ethical principles (James & Busher, 2015). The confidential
information about the collected data will not be shared with anyone else in the future. All
confidential information is used in such a way that no harm can because to any person or group
of persons. The topic and its various parameters are also analyzed by considering various ethical
principles. The dissertation is plagiarism proof, as it is not copied from any other source as we as

DISSERTATION 27
made by the researcher in an effective manner. The topic is implying many information and
knowledge through this research in an ethical way.

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Chapter 4: Findings
Introduction
This chapter presents the findings of three relevant articles related to research study. These
articles are selected on the basis of its authenticity, reliability and also these articles are recently
published. It is discussed as given below:
Article 1: Middle East investors seek to hedge risk through portfolio diversification,
Lombard Odier says
It is found that investors in the Middle East are increasingly heading the uncertainty via
diversification of the portfolio, venturing into the private equity investment among slowdown of
international economic, Brexit uncertainty as well as, trade war. It is addressed that investors in
the Middle East are increasingly hedging uncertainty via diversification on all classes of assets
together with, are interested in private equity since it is becoming a sound way for diversifying
the uncertainties (Khan, 2019).
It is addressed that the tariff war among two biggest international economies, geopolitical
tensions, disorderly Brexit as well as, increasing international indebtedness is some of the risk
that is facing the world economy together with, investors. But, the international recession is not
on the cards. It is evaluated that the allocation in the portfolio about average investors in areas is
allocated 40% on equities as well as, 40% on fixed income assets as well as rest is categorized
among alternative investment such as exposure to hedging funds, infrastructure assets as well as,
private equity (Khan, 2019). However, it is identified that when portfolio had considered 10%
more in private equity and infrastructure assets previous year, their performance will have been
totally distinct, in spite of the slump in international equity markets with respects to end of 2018.

DISSERTATION 29
It is found that the client could be diversified into those asset classes. The asset manager has seen
a significant increase in its regional client-base that involves family offices, institutions, trading
associated corporations, entrepreneurs, and institutions.
This finding is supported by the opinion of Ignacio Bretos and others (2016), as it was stated that
the challenges as well as, opportunities entailed in global organisation with the cooperatives. It
also demonstrated that there is association among opportunities and challenges present within
global economy. It is also assessed that the cooperative international business challenge and
opportunities has impact on the global economic development. It is assessed that these elements
are strengths and weaknesses of cooperatives in global organisations. In addition to this, it is
promotion of local community and culture by these firms in global organisations. It is evaluated
that opportunities and challenges entailed in companies performed through corporate at global
level. The investigation is relied on secondary information therefore, it is addressed that an
investigation gap involves the recommendations for further investigation that could be relied on
primary assessment with developing hypothesis. It could be measured with the support of
inferential assessment.
It is addressed that there are 80% of corporations in the UAE is family-owned. The older Swiss
private bank is not only performing wealth management facilities in the region, however, it is
offering governance advice to clients with respect to how they can organize their businesses in
around family and with respect to assets classes. It is also identified that with $276bn in assets
under management predicts to still twice its business in the Middle East. The region is between
fastest increasing markets for Lombard Odier as well as, the bank is targeting the region to
account for 10% of its total resources from roughly 5% at moment, as well as, emulating growth
over previous few years (Khan, 2019).

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This finding is favoured by view of Jason Webb Yackee, (2014) as it was stated that there are
certain theoretical with operational complexities entailed into measurement regarding potential
uncertainties. This risk is associated with the internal business and regulations associated with
them. It is a conceptual investigation that only assessed the earlier developed concept with
theories of uncertainties. It also offered some model and strategies for declining the effect of risk
on global business.
It is identified that the company is engaged in doubling assets base in the last five to seven years.
In addition to this, there is ultra-high-net-value among individuals in the Middle East. An
individual with a net worth of over $30 million is a prospect to gain by 20% within the next 5
years as per new report through international property consultancy Knight Frank. It indicates the
region would add another 1660 individual to the upper band of very wealthy through 2023.
It is also found that the bank is in the procedure of opening this year its office in the financial
hub of capital that would emphasize its advisory business in the Middle East. As per the opinion
of Charlotte H. Bank, (2017), the key risk is that any investor faces in global boundaries when
making the desired investment is political risks. In addition, these risks are associated with
factors associated with policies, laws as well as, legislatures of that nation associated with the
investment made through individuals. Each nation has its own regulations and laws for assessing
those rules hence it becomes complex occasionally for investors to invest in such nations that
have some hidden legislation, which in future may destruct investors economically. It is
addressed that political measures should be considered before creating global investment and
about factors that support to measure the political risk entailed in global investments.
Article 2: The Risks and Opportunities of Doing Business in the Middle East

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It is found that for every firm involving market opportunities in Middle East and North Africa,
political as well as, economic stability of the region is of high concern. There is several MENA
regions face persistent issues related with payment obligations, corruption, and physical security
threats, as well as, currency risks. Firms should deal to bureaucratic minefields with uncertain, as
well as, ever-transforming regulatory as well as, tax climate. Consequently, although not each
MENA regions present the same challenges, corporations focusing on penetrating the region
should conduct cautious risk assessment before enlarging into market (Banham, 2016).
This finding is favoured by Dalia Marin and others (2014), as it was stated that internal
hierarchical distribution model is used in global trade. The theory is created in this research
generally emphasizes on decentralisation of performance in across the companies. Under global
trade, conflicts create among CEO as well as, managers in association to power and actions.
Therefore, decentralisation is entailed to be good approach in global trade. It is evaluated that
international trade theory identifies the persistent outcomes with specified mode.
It is identified that rewards of performing the business in MENA could not be avoided.
Companies that adhere and pursue to severe principles about risk management could create very
lucrative development of business. Furthermore, recent statistics associated with international
monetary fund (IMF) via their economic outlook of the world databases consider export worth of
Middle East at $1.13 trillion in end of 2012 year, figure that demonstrates 6.2% of total
international exports as well as, integrated GDP of all Middle Eastern nations was $3.96 trillion.
This finding is supported by the opinion of Reilly & Brown (2011) as it was evaluated the
procedure of decision making is significant from the aspect of business in domestic and global
boundaries. Decision making is procedure that contains the action and supportive for creating the

DISSERTATION 32
significant decision for specific thing. Along with this, every decision making concludes the
specific decision after going via several alternative decision associated with specific condition.
It is also found that report precedes precipitous reduces in oil prices, but that can cause earnings
related to exports to decline by hundreds of billions of dollars within nations of Gulf Cooperation
Council such as United Arab Emirates (UAE), Qatar, Bahrain, Saudi Arabia, as well as, Oman).
It is complex for producers of high oil in region that have led for optimizing expenditures,
suspend workforces as well as, decline provisions of workforce benefits (Banham, 2016).
It is addressed that international investment decisions are difficult because it entails uncertainty
and the risk of unknown conditions. This finding is supported by opinion of Frank J. Fabozzi and
others, (2011) as it was stated that different phases and factors entailed into investment decisions
like portfolio construction, allocation of assets, strategies as well as, valuation is supportive to
manage the global investment uncertainties. Some practices and theories are entailed that in
together supports for managing the international investment as well as, risk entailed in them.
With the support of these practices and theories, the author has made efforts for offering
strategies to manage involved uncertainty in a significant way. This data could be supportive for
investors to manage risk entailed in global investment that they are planning for investing in
Middle Eastern nations.
Understanding the Risks
It is found that for corporations that expect an adequate ROI (return on investment) to expand
into MENA region, next phase is addressing threats for attaining this return. It could involve
operational and strategic risks (impositions of tax with regulatory as well as, asset expropriation),
and financial risks (contract repudiation, fluctuation in currency exchange, as well as, non-
payment related to monies owed. It also entails cultural risks such as failure for negotiating the

DISSERTATION 33
ways that foreign business partners are expecting for negotiating. Along with this, reputational
risks like revelations that corporation paid bribe, offered kickback or considered questionable
labour activities (Banham, 2016).
This finding is supported by the opinion of A. Mintz, (2016), as it was evaluated that integrated
approach as well as, cognitive rational theory related to decision making are assessed with the
support of global and foreign policies. It could be supportive to decide as per policies of foreign
nation where an individual is preparing for invest. This theory could be supportive in creating the
rational decision about investment made by investors within Middle East. It could be supportive
to assess the risk factor present in procedure of decision making.
It is evaluated that although primary risks have been remain macroeconomic as well as, geo-
political, there are countless factors for performing companies into MENA that could transform
promptly as well as, impact potential uncertainty. It is an errand of a fool for thinking and
applying cookie-cutter strategies for addressing risk across the region. It is also found that global
risk management consultancy proficiency within political risk. There is a requirement for laser-
on one nation, perform their particular work, put boots on the floor, get sense for culture, as well
as, partner with an external company for assisting the company along the way.
This finding is supported by the opinion of Tidiane Kinda and others, (2011), as it was opined
about the productivity of firm and investment decision while it selects for investing in North
Africa and Middle East nations. This paper is associated with investment decision about
manufacturing of products. This judgement of global investment is compared to investment
developed in 17 other developed countries. The Middle income status about Middle East
economies is related to involving the risk in investment decision. It could be developed by
investors in longer run. It also emphasizes on deficiencies of investment climate, which could

DISSERTATION 34
influence the production quality related to infrastructure and labour force associated with factors
as well as, accesses to finance. This paper illustrated the specified dimension about deficiencies
in investment climate that could be supportive for investors to invest into Middle East and North
African environments with significantly deal with risk factors.
In different ways, in spite of regulations and governments is making efforts for the right things
and it would remain to evolve the landscape. In opposed to political factors, another factor may
entail risk in global investment made through investors. It is significant for any investors for
looking towards all of these variables as well as, decides consequently. The investment that
investors are making planning for outside of its domestic boundaries is required to be thoroughly
assessed and evaluated before making an investment. It is significant as the investment may
entail risk associated with finance or physical property regarding investors. This finding is
favoured by view of Yan Bai and others, (2012) as it was evaluated that financial liberation
supported to make sure the measures in against some risk of investment. Because of this, the
nation has shared the financial risk variables between them that made risk entailed in
international investment lower in measure. It should be controlled through official parameters of
nations both global as well as, domestic level. Because of the liberalization of risk, the default
risk factor is yet demonstrated in every global nation. The investor is recommended for
following both domestic and international risk entailed in global investments.
Financial Exposures
It is addressed that to outside, MENA is region widespread that has involved international and
civil conflicts, social unrest as well as, increasing availability of extremists. These pernicious can
create high risk about asset expropriation, contract repudiation, currency manipulation as well as,
threats related to personnel security.

DISSERTATION 35
Economic issues could be influenced by the timing about prospected payments regarding
products or services that are already delivered. Because, international investment is required for
the economic development of the country, multinational firms do have leverage for pressuring
payment on timely basis. However, it would not always be significant.
In the end of day, it may boil down for single uncertainty such as will I be paid or not. In
addition to this, fluctuation into a foreign currency exchange rate could affect the payments,
gaining risk of capital losses. It is found that currency devaluation would create exports cheaper
as well as, imports more expensive whereas appreciation of currency would increase the price of
exports at expenses regarding import expenses. Moreover, foreign firms that sell their goods and
services on credit can face a loss when changes in exchange rate among payment as well as,
invoicing (Banham, 2016).
This finding is favoured by view of Kamel Mellahi and others, (2011), as it was evaluated that
many nations of Middle East are emphasizing on changing their economy into globalized. They
now are initiating to offer entry to different international firms in their countries, but there are
some strict regulations those MNCs have to consider for investing and expanding their business
into Middle East nations. This paper discusses some challenges and opportunities demonstrate in
the Middle Eastern nation in the context of international investments that investors can create. In
addition to this, the paper has offered some measures that should be considered through investors
whereas investing on a global level.
Cultural Differences
It is found that firms also require being aware of social as well as, cultural dynamics of
performing companies in Middle East as well as, endeavour for developing authentic personal
associations with their business partners. Furthermore, company should take time for

DISSERTATION 36
investigating into Middle Eastern cultures, specifically as this is related to business conduct and
comportment. It is addressed that an individual in the Middle East is part of what a company
calls an honour culture. Under such cultures, worth of an individual is a role of their reputation
together with, reputation is function regarding what they perform as well as, what others think
regarding what they perform. As a result, it could consider moderately bit of time for middle
easterners for creating trust in another party. Under Middle East, personal and business
associations are the same thing. It is expected for creating a true bond (Banham, 2016).
This finding is supported by views of Dan V. Caprar and others, (2015) as it was discussed that
the impact of cultural and legal differences on global business is investigated. They identified
different issues dealt in global business but the key critiqued concern is challenges faced through
businesses in spreading their firm globally. They assessed different strategies and theories for
comprehending several challenges. They also suggest their own directions to handle their global
business challenges.
Risk Management Best Practices
It is found that ongoing monitoring regarding risk is absolutely significant as political as well as,
economic circumstances in MENA can transform promptly. It is required to have an individual
on ground for offering intelligence on status of a developing political atmosphere that local
partner could offer. It is identified that data on brewing political conflicts, which may have
unfavourable market effects in upcoming time and could be created through investigation as well
as, consulting companies that proficient in region (Banham, 2016).
This finding is supported by view of Pastor& Stambaugh (2010), as it was stated that
international trade theory is a theory that is more favourable as well as significant manner.
Experts in the field of global trade create this theory an since then several investigators add

DISSERTATION 37
something in it and addressing the solution for their own global trade associated with the help of
this supposition. There are few threats to company caused through factors which are political that
could be insured. In addition to this, risk insurance in terms of political factors is obtainable
through commercial insurance corporations as well as governments like overseas investments
which are private company in US for absorbing company associated losses because of war,
terrorism, strife, government contract repudiation, civil strife, government asset expropriation,
transfer of local currency revenues as well as, restrictions on the conversion.
It is addressed that political risk insurance is not a panacea, but when the company is booted out
of nation that has experienced coup as well as, assets are missing there, the company can claim
losses about policy. However, it would take longer time to get money. This finding is favoured
by view of Guy L. F. Holburn and others, (2010) as it was stated that political and policy
associated risk for conducting business globally with respect to international electric power
generation sector is evaluated. It talks regarding the barriers entailed into global business and
policies associated with the environmental factor of business. This article focuses on weak
political variables of domestic business and strong political factors while business considers
international panels. It makes them initiates several strategies to overcome the political barriers
present in global boundaries. Their hypothesis addressed the favourable effect of political
uncertainty on the longevity of the electric power generation industry into global standards.
Proceed with Caution
It is found that opportunities related to business in MENA countries must be compared against
several risks. Furthermore, same approaches that implement for risk management in other
nations of world apply in Middle East. In context of volatility of the nation, but risk monitoring
should be more rigorous. Hence, it is significant for both regional and MNCs are conducting

DISSERTATION 38
business in MENA nations to have human occurrence on their side. Through dispatching their
own individual to region as well as, retain local partner that comprehends uncertainty of doing
business in specific nation, firms can more closely assess the transformations to their risk profile
as well as, takes benefits of investment opportunities of the region (Banham, 2016).
This finding is supported by view of Mark S. Schwartz, (2016) as it was evaluated that decision-
making should be performed ethically for eliminating the unethical conditions in future. This
paper described the ethical decision-making models as well as, claims that these models have a
theoretical perspective regarding conflict with each other. For addressing the concern, the author
of this paper has proposed a revised model regarding EDM that has the prospect to bridge the
gap among conflicting conditions of several EDM models. The prospected model is known as
integrated ethical decision making. The recommendation and limitation of this research
recommend that the proposed model is not that vast for covering the bridge gaps of all EDM
models, therefore, the future investigation can emphasize broader revised theory.
Article 3: UAE investors are choosing investment portfolios that align with their risk levels:
Study
It is found that UAE based investors are gradually more aware of significance of their investment
assortments that links to risk comfort extent as per research through Old Mutual International as
well as, Quilter Cheviot Investment Management. Moreover, 81% of participants stated that this
is an essential factor they focus on when considering investment on finances with Discretionary
Fund Manager up from 73% in the year of 2017. There are some concerns like stagnation in
world economy as well as, political challenges across globe is clearly playing on mind of
investors. However, this risk could be lightened through investing with DFM.

DISSERTATION 39
It is addressed that global investment is a kind of investment that a person and an organization
undertake in the nation as compared to the domestic nation. Furthermore, international
investment is beneficiary within many cases but it is not safe. It entails several kinds of risks like
the risk of competition, economic factors, and the financial condition of a nation, political
factors, kinds of investment as well as, the thing where an individual is investing. These actions
in some other global measures provide the investee to create profits but with an immense
quantity of risk-taking (International investment, 2019).
It is evaluated that there are a high amount of investors who are more unwilling to take risk as
compared to previously. Furthermore, quarter of participants stated that they are risk-averse as
compared to 15% on 2017 whereas 44% now entails them risk-neutral, down through over half
(53%) of participants in the year of 2017. This sense of investor is apprehension for further
reflected in an increase in those assessing investment monthly or quarterly i.e. 75% vs 68% in
the year of 2017.
Paul Evans who is head of Region, Middle East & Africa, Old Mutual International stated that
managing risk is an essential element of investment procedure. Controlling volatility as well as,
managing downside is all element of managing the risk. It is significant that portfolio is correctly
harmonized with risk profile of investors and that is accessed on an ongoing basis. It is found
that investigation targeted investors to live in UAE (mainly Abu Dhabi and Dubai) who practice
the facilities of professional for investing in the stock market with at least $50,000 invested
(International investment, 2019).
This finding is supported by opinion of Dalia Marin and others, (2014), as it was evaluated the
risk entailed in created investment in Middle East nation. Furthermore, Middle East is integration
of nations that are positioned in transcontinental field of Turkey, Western Asia and Egypt. Along

DISSERTATION 40
with this, south Arabia is entailed the geographically wider country in Middle East as well as,
Bahrain is entailed as a smallest country. The Middle East contains some larger nation such as
Ethiopia, Libya, Saudi Arabia and Sudan. These countries are not that internationalised in their
operation hence would not permit easily any foreign investors for investing in their nation.
It is also found that another investigation emphasizes on offering detailed data regarding global
investment decisions about Middle Eastern nations and describes the approaches for overcoming
the risk entailed in those decisions. This finding is favoured through Tim Romans and others
(2013) as it was determined that determinants of foreign direct investment could be supportive
for investors to create investments within Middle Eastern nations. The investment decisions in all
of these countries are not that easy as they complex entry and growth policies within their
countries.
Conclusion
From the above interpretation, it can be concluded that the first article demonstrates the findings
of Middle East investors seek to hedge risk through portfolio diversification, Lombard Odier
says. Furthermore, second article founds that there are different Risks and Opportunities of
Doing Business in the Middle East such as current risk, exchange rate risk and political risk as
well as, opportunities are business expansion and increasing business growth. It can be also
summarised that UAE investors are choosing investment portfolios that align with their risk
levels.

DISSERTATION 41
Chapter 5: Conclusions and recommendations
At the end of the dissertation, this can be said that risk management for the investors in the
Middle East is essential to research. The research is conducted with the motive to address the
wide ranges of the risk management majorly for the investors who make the investment in the
companies of the Middle East market. In order to accomplish the aim of the research, the
researcher has formed the objectives which are clearly presented. These objectives of the
research include understanding the risk in the Middle East, addressing the major challenges that
are faced by the investors to manage the risk and also to determine the strategies that can be used
by the investors in the Middle East area.
The review of literature has been undertaken in the dissertation which shows the concept of the
risk management for the investors. Along with this, it shows the potential challenges as well as
the opportunities that are faced by the investors while making the investment in the international
market. The major risk that has been faced by investors includes political risk, economic risk,
financial risk, and many others. In addition, this study involves the theoretical research review
which includes the international trade theory as well as its relations with the investment done by
the investors in the Middle East market. Further, the decision-making theory is also adopted by
the investors so that they can make the right decision at the time of making the investment in the
Middle-East areas. Apart from the theoretical literature review, the researcher has also conducted
the empirical literature review which helps the researcher to get the insight into the risk
management with the international investments. It also reflects the different risk that has been
faced by investors in the Middle East region. In the review of literature, different books, articles
as well as the paper has been examined which shows that there are different kinds of risk which
are essential to manage or address by the investors while making the investment in the Middle

DISSERTATION 42
East countries. These risks majorly include political, economic, financial, climate and culture
different risks.
The data has been collected by the researcher with the help of different tools and techniques that
are majorly used by the researcher. The investigator has used the secondary data method to
collect the reliable as well as accurate information related to the risk management that is faced by
the investors in Middle East countries. The approach which is used by the researcher in the study
is observation, which is done for some theories, facts, principles and many others related to the
risk investment that is done by the investors. In the dissertation, the researcher has considered the
research topic and accordingly they have kept the descriptive research design for this study. The
information that is gathered by the researcher will be analyzed further which will leads to the
findings of the research with the help of the content analysis method. The findings of the
research are essential to conclude that the entire objective of the research is met appropriately.
In the findings, this has been found that the investors who are making the investment in the
Middle East are increasing heading with the uncertainty via diversification of the portfolio, trade
war, Brexit which affects the economy and venturing into the private equity investment which
leads to the slowdown of the international economy. The articles considered for the findings and
analysis as per the secondary method of research shows that the investor faces the different risk
at the international boundaries which are linked with the political factor. The elements that are
considered by the investors on the political perspective involve laws, policies, legislatures and
many others that are linked with the investment. The investors are required to understand the risk
because this can affect their investment which is required to be managed by them.
In another article, this has been determined that organizations that remained aligned with the
strict principles related to the risk management that can make the business profitable. The recent

DISSERTATION 43
statistics of IMF shows that the world economy database reflects the export value of Middle East
at $1.13 trillion at end of the year 2012 with a figure, which shows 6.2 percent total number of
global exports. This has been found that apart from the political factors there are many other
factors which include the problems related to economic factors that affect the duration and
timing of payments which are anticipated for products as well as services that are already
rendered. The change or fluctuations in the currency of the Middle East countries can affect the
investor’s payment as well as lead to a rise in the risk of capital loss. The devaluation of the
currency might also lead to the investor on loss. Along with this, it has been found that there can
be cultural differences which will be faced by the investor in the market which is directly related
to the personal relationships of the business partners which affects their working.
This has been found that the investors need to conduct the best practice through which they can
manage the risk. The risk management can be done with the effective implementation of the
international trade theory that assists in understanding the trade in the international market in
positive as well as in an effective way which can be adopted by the investors. It has been
concluded that experts in the field of international trade form the theory and conduct different
types of researches with the motive to add something in it and also to determine the solutions for
their own international problems related to the trade. The investors need to understand the risk
closely so that they can effectively address the same. In the entire research, the model that has
been proposed to deal with the issues is Integrated Ethical Decision making (EDM). Considering
the research, it can be said that different authors have presented books and articles which include
the strategies that can help the investors in making the right decisions. In addition to this,
determinants of FDI can assist the investors in making the investment in Middle Eastern
countries.

DISSERTATION 44
In the end, this can be concluded from the findings that there are different risks that are faced by
the investors in the Middle East area which are required to be managed. Thus, risk management
strategies can be adopted by the managers while making the investment. Considering the same,
some of the recommendations are essential for the investors to bring improvement in their
decision while investing in Middle East areas.
Recommendations
It is suggested to the investors to use a wide range of tactics to ascertain the risk in which one of
the most commonly used is risk metrics which is a standard deviation. It is considered as a
statistical dispersion around a central tendency (Haendel, 2019). This will help the company to
take the final decision in terms of financial loss.
The investors should form a probable maximum loss plan which is the initial step in terms of
avoiding the large chunk of your portfolio. If in case you have a probable maximum loss plan
which may cause you to make the investment more conservatively. The investors who are
investing the amount in Middle East market should consider the focus on the long term instead of
the short team as this is the way through which they can make their investment profitable and
also leads to the success in the market (Al-Akra, Abdel-Qader, and Billah, 2016).
The investors should make use of the diversification strategies which include the well-balanced
investment portfolio that includes spreading of the diverse funds among the different types of
assets as well as investing in various securities which will reduce the risk of the failure that
might affect the investors. In addition to this, the investors who are performing their investment
in a diversified manner should ensure that they are making the right investment at the right time
which leads to high sustainability (Unruh, Kiron, Kruschwitz, Reeves, Rubel and Zum Felde,
2016).

DISSERTATION 45
In addition, the investors should appoint experts who can provide a wide range of knowledge
related to the political terms and conditions related to the investment. This will help the investors
to make the right decisions for investing the amount with the expertise knowledge (Brink, 2017).
The investors can be in touch with the economist who can provide the deep knowledge about the
economy of the country in which the investors want to invest their amounts which will, in turn,
good as well as positive results for the investors as well as it will contribute in managing the risk.
It is addressed that investors should determine the tolerance to different types of risk. Each
investment entails some extent of risks such as comprehending kinds of risk and integration of
kinds of risk is required for declining those uncertainties (Hammami, and Boubaker, 2015).
Two factors that could be supportive for evaluating the risk tolerance is net worth and risk
capital. Net worth is measured by asset minus the liabilities. Risk capital is money that when an
investor loses of investment then it would have impact on lifestyle. When an investor has a high
net worth as well as, substantial risk capital then, it can afford to have tolerance of high risk.
When net worth of investors is little and nothing, then they does not have much risk capital. In
such condition, it should emphasize on conservative as well as, low-risk investments (Sadgrove,
2016).
It can be recommended that investors should use their due diligence. In such way, investors
should conduct research on their investment before making investment decision. Investors should
assess the history of investment, management team, earning growth as well as, debt load. It can
also make comparison the outcome with other similar goods of investments and other resources
in their investment portfolio (Carafa, Frisari, and Vidican, 2016).
Investors should emphasize on price-to-earnings ratio as it determines the association among
annual after tax earnings and stock price of company. A firm that has effective higher P/E ration

DISSERTATION 46
as compared to other comparable corporation in same industry particularly entails higher
uncertainty. Investors can decline the investment risk by weeding out the stocks with the larger
price to earning stocks, inconsistent earnings, unstable management as well as, sales growth
(Naifar, 2016).
It can be recommended that company should diversify the investment portfolio across the
product types of investment as well as, economic sectors. Furthermore, diversification declines
the overall risk through spreading it over wider categories of products. It can be suggested that
company should monitor the investment regularly as well as, reallocate the resources as required.
The adequate allocation of investment is relied on such factors such as age and how long
investors have to invest as well as, investment temperament. Once a year, investors should assess
the holding and buy resources as required to bring the portfolio back to adequate allocation of
resources (Duan, et. al., 2018).
It can be suggested that company should take benefit of investment products guaranteed through
federal government. For instance, federal deposit Insurance Corporation insures the deposits at
member banks such as certificates of deposit as well as, money market accounts up to 250,000 as
of 2012 (Hammami, and Boubaker, 2015).
The national credit union administration facilitates the same insurance for similar deposits at
federal credit unions. Furthermore, U.S. treasury securities such as U.S. savings bonds are not
insured through federal agency. But, they are backed through full faith as well as, credit of US
government. Whereas, there are still maker risks as well as, penalties related to early withdrawal
when an investors have to access money prior to maturity then interest and principal of these
investments are as safe as investors can get when detained to maturity (Sadgrove, 2016).

DISSERTATION 47
It can be suggested that dollar cost averaging is defined as a disciplined investment approach,
which could be supportive for smooth out the impact of market fluctuation in investment
portfolio. As per this strategy, investors can apply particular dollar amount with respect to
buying stock, bonds and mutual funds on regular basis. Consequently, investor purchases more
shares while prices are low as well as, fewer shares while prices are high. In addition, average
cost of shares would generally be lower as compared to average price of those shares. Since, this
strategy is systematic hence it could be supportive for declining making emotional decisions of
investments (Unruh, Kiron, Kruschwitz, Reeves, Rubel and Zum Felde, 2016).

DISSERTATION 48
Reflective Statement
This study was imperative for comprehending many things which are essential to operate the
research acts in a systematic way. I understood that research study could consider many sections
named as the introduction, literature review, research methodology, and the data analysis source,
and conclusion and recommendation. In the study, I understood that the research skills are vital
for operating the study and meeting organizational task. The literature review section is vital in
increasing the depth information about the research issue (Sadgrove, 2016).
This section is significant in gaining knowledge about risk management for investors in the
Middle East. I also increased my existing about different factors of risk that will affect to
thinking of investigators to invest in the Middle East. I comprehended different research skills
that are vital in completing research activity. After the completing of the study, I increased my
knowledge about personal as well as professional skills that are essential in obtaining the depth
information about the study. Moreover, the research skills could be vital in getting the depth data
towards the research issue (Unruh, Kiron, Kruschwitz, Reeves, Rubel and Zum Felde, 2016).
It is also illustrated that there are certain research skills which are comprehended by me named
as data collection analysis, data analysis methods, sampling tools, ethical consideration. I also
understood that the data collection tool enables the investigator for comprehending methods
which are entailed in the study for performing the research activities. There are two kinds of
tools that are considered in the study named as primary as well as secondary data collection
sources (Hammami, and Boubaker, 2015).
I also enhanced my understanding of the different kinds of tools which are known as the
statistical and non-statistical tool. These tools are imperative in evaluating the information and
obtain depth information towards research matter. I understood that the data analysis section is

DISSERTATION 49
an imperative part of the research because this method permit scholar to meet the purpose of the
study. I also understood different ways by which the accuracy of the article has been evaluated. I
also understood that the articles are imperative for making the result accurate (Rauf, 2016).
It would also support to meet the task of study. It is illustrated that the depth knowledge about
reliable articles could be supportive in meeting the task of research. I also comprehended that
how many reliable articles have been selected for the study. I also gained my depth
understanding about ethical norms that facilitates to the researcher to ethically represent
information about study issue (Al-Akra, Abdel-Qader, and Billah, 2016).
It is illustrated that there are certain elements that are considered in the ethical consideration
named as credibility to authors, follow university guidelines, lack of data manipulation, and less
plagiarized work. It would lead to eliminate the ethical issue from the study and make accurate
research result (Naifar, 2016). It is illustrated that ethics could also mandate the person to
conduct suitable behavior with others. From the application of the ethical norms, the investigator
ensures that their research will not be harmful to the individual as well as the environment. It is
examined that the researcher should consider this to make a reliable decision towards the concern
(Duan, et. al., 2018).

DISSERTATION 50
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