Country risk assessment by applying multi-criteria decision-making methods: a case study to rank countries in the Middle East & North Africa

Document Type: Original Article


1 Businesses Administration, Faculty of Economic and administrative science, Istanbul Aydin University, Florya, Istanbul, Turkey

2 Department of Industrial Engineering, Faculty of Engineering, Istanbul Aydin University, Florya, Istanbul, Turkey


The Middle East and North Africa (MENA) have been attracting many international investors for decades, but the current geopolitical situation has not shown a welcoming face towards foreign investors. Consequences of war, terror and political changes in the region have forced many international companies to reconsider their plans or withdraw their investments. On the other hand, there are companies that have faith in investing in the emerging market of the MENA with fewer competitors. It must be mentioned that narrowing down the best possible decision needs research on the current situation as well as analyzing and forecasting of the upcoming situations in terms of many factors within the country concerned and the region. The Multi-Criteria Decision Making (MCDM) analysis helps investors to choose the best alternative from a set of relevant criteria. In this paper, one of the well-known MCDM methods, TOPSIS, was used to rank twenty-three countries based on twenty key indicators within the years 2000-2015. The outcome of these findings provides a set of country rankings for an interested group of decision makers, policy makers, stakeholders, and other involved parties based on their interest in the MENA region in the so-called Arab Spring and post-Arab Spring environment.


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