Valuation in International Arbitration
Measuring Country Risk in the Middle East
Country risk can be an important consideration in the assessment of damages in international arbitration, because valuation analysis depends on assessments of relevant risks (and the associated expected returns).
In their latest article for Global Arbitration Review, Steve Harris, Ben Johnson and Emre Aydin explore some of the challenges and considerations involved in measuring country risk, in the context of cash-flow-based damages assessment or valuation. They also briefly review the main methods used by practitioners to estimate country risk premiums, and conclude with illustrative results of such calculations with reference to the major economies of the Middle East.