The strength and reliability of a country's legal, regulatory, and governance systems; weak institutions raise transaction risk and are the deepest driver of emerging-market risk premia.
Related terms
- Market transparency
The availability and reliability of data and processes in a market; often low in frontier markets.
- Master developer
A large entity that develops land and infrastructure, then sells or partners for vertical build.
- Parallel exchange rate
The unofficial market rate for a currency when it diverges from the official one; a wide gap, as seen in Egypt and Nigeria, signals FX scarcity and distorts pr…
- Political risk
The risk that political events, unrest, or policy shifts damage an investment; the 2011 Egyptian revolution and periodic regional instability are why buyers pr…
- Repatriation risk
The risk of being unable to move capital or profits out of a country.
- Sovereign risk
The risk that a government defaults on its debt or changes rules in ways that hit investors; a sovereign downgrade raises financing costs across an entire mark…
- Store of value
An asset held to preserve wealth over time, a key motive for property in volatile economies.
- Transparency index
A published ranking of how open and reliable a market's data, transactions, and regulation are, such as JLL's Global Real Estate Transparency Index; Gulf marke…