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Rule of Law Index reveals investor risk

8th February 2012

A leading risk analysis firm have released the results of their yearly Rule of Law Index, which indicates that countries rich in oil and gas supplies are among the riskiest in which overseas companies can invest, in terms of the legal protection they offer.

Several of the 19 places categorised as ‘extreme risk’ have booming energy industries, including Burma, the official riskiest location. According to Maplecroft, who carried out the study, the Index takes into account the risks presented to business by the country’s internal regulation, as well as measuring its judicial independence and effectiveness.

One interesting finding revealed that, while China’s legal system was deemed extremely efficient, the country was one of the worst in the world when it came to judicial independence.

However, those in London legal jobs remain optimistic about their opportunities in such ‘high-risk’ locations, as separate research has shown that law firms are looking to become more involved with North African countries in particular.