COUNTRY RISK ASSESSMENT FOR THE UNITED KINGDOM

Authors

  • Hussein Ahmad Bataineh Research Scholar, Finance Department, Jordan University, Amman, Jordan
  • Sulaiman Humaid Al Harthy Senior Islamic Banking Analyst, Central Bank of Oman, Oman
  • Raqiya Ali Al Balushi Internal Auditor, Bank Muscat, Oman
  • Ahmad Omar Albesisi Human Resources Department, Alrajhi Bank, Saudi Arabia

DOI:

https://doi.org/10.46827/ejefr.v4i4.1013

Keywords:

country risk assessment, investment, economic profile

Abstract

The study aims to make risk assessment of investment in the United Kingdom so as to open a new branch of a big bank in United Arab Emirate. The findings of the risk assessment recommended to establish the new branch in the UK basing on diverse reasons. Firstly, according to the international monitory fund report, the GDP of the United Kingdom will increase from the financial year 2018 through the financial year 2022. The economy will advance and widen. Plus, the growth in GDP indicate that all sector in economy including the banking sector will also develop. Secondly, according to the UK office Budget Responsibility (ORB) projections, the UK interest rate will rise in the coming four financial years that will surely be reflected on the increase of profitability. Thirdly, the inflation rate in the UK will decrease in the coming four years, which has positive effects on the banking sectors because inflation rate leads to low costs of products and services. Additionally, the GDP per capital of the UK rise in the coming four fiscal years which is healthy for banking sector to be highly productive and profitable. More importantly the population of the UK will increase in the coming four years, which is favourable to the banking sector this means that the number of will increase. Moreover, the bank of England allows all the commercial banks in the country. Another reason that encourage investing in the UK is the advancement in technology. Besides, the most important reason encourage investment in the UK is the country’s system of governance that is a democratic system of leadership that does not hinders private investors unless they violate law. The researchers conclude that they recommend the decision to open the new bank in the UK. Since the benefits supersede the costs. JEL: E22; F21; G21

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Author Biographies

  • Hussein Ahmad Bataineh, Research Scholar, Finance Department, Jordan University, Amman, Jordan
    Hussein Ahmad Bataineh is working in Banking sector since 2016. He has a good knowledge in different departments in Banking sector. Regarding to the education, he got MSC in Banking and Finance Bangor University (United Kingdom) Master of Science Banking and Finance in July 2019, achieving an average total mark of 76%, with a degree classification: Distinction. BSC in Finance Bachelor’s degree in Finance from University of Jordan January 2016. During his education and carer journey he was awarded: 1. Academic excellence certificate from Bangor University 2. Award from United Nations Relief and Works Agency (UNRWA) for effective participation in helping Syrian refuges.
  • Sulaiman Humaid Al Harthy, Senior Islamic Banking Analyst, Central Bank of Oman, Oman
    Sulaiman Al Harthy is passionate and inspiring Central Banker & Senior Islamic banking Analyst with a solid background and first-class technical skills in Islamic Finance and Shari’a. His experience at the Central Bank of Oman over 10 years, has equipped him with the necessary skills in formulating rules and regulations, including amendments to Banking Law, and Islamic Banking Regulatory Framework (IBRF) and part of the High Shair’a Supervisory Authority secretary. As regulator in Oman working to Strengthening and enforcing legal, regulatory rules and Shari’a compliance framework for Islamic Banking Entities (IBEs) in line with best practices. Sulaiman formerly worked at Ernst & Young in advisory services as team member of the Project Management Office PMO for the establishment of first Islamic bank in Oman, and then he moved to the Capital Market Authority in Oman regulating the Insurance sector where he monitored to conversation of first conventional insurance company to Takaful. Sulaiman is also active member of the IFSB Arabic Editing committee, and part-time lecturer at College of Banking and Financial Studies in Oman. Sulaiman earned high academic qualifications including MSc in Islamic Banking and Finance from Bangor University UK, and Bachelor of Science in Finance. Besides, he is Certified Shari’a Adviser and Auditor by AAOIFI.
  • Raqiya Ali Al Balushi, Internal Auditor, Bank Muscat, Oman
    Raqiya Ali Al Balushi helds various positions in Bank Muscat with the Internal Auditor position as the latest one. He had worked in the human resources department, which provided me knowledge on human behaviour. He is interested in fully grasping the best approaches in interacting with employees to harness them potential, promote their growth, and make them assets of the organization. As an internal auditor, he understands the financial aspect of the business operation with a perspective of human resources management to align the capital and the workforce. He is working as an internal auditor since 2015. In between responsibilities in Bank Muscat, he pursued my Master’s degree in banking and finance from Bangor University in the United Kingdom with Distinction. The experience enriched knowledge in audits, control points, deviations, and action plans. He conducted special audits and investigations on request of the senior management or the Board of Directors. Sulaiman Al Harthy: Senior Islamic Banking Analyst at Central Bank of Oman.
  • Ahmad Omar Albesisi, Human Resources Department, Alrajhi Bank, Saudi Arabia
    Ahmad Omar Albesisi is a Bachelor of Science in Finance holder from King Abdulaziz University, Saudi Arabia in 2015. For more academic growth sought higher education in the United Kingdom and graduated with 2:1 honors in MSc Islamic Banking and Finance from Bangor University "2019". In the beginning of 2020 started his career in the largest Islamic bank "Al Rajhi Bank" as Graduate development programme and currently working as an internal auditor in the same organization.

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Published

2021-02-23

Issue

Vol. 4 No. 4 (2021)

Section

Articles