see admission document1 Jan 2014 15:09
1. Risks relating to the Middle East
Weaknesses and uncertainties relating to the legal and regulatory systems in many of the countries in
which the Group operates or may operate in the future create an uncertain and high risk environment for
investment and business activities
Many of the countries in which the Group operates or may operate in the future are in various stages of
developing institutions and legal and regulatory systems that are not yet as firmly established as they are in
Western Europe. Some of these countries are also in the process of transitioning to a market economy and,
as a result, are experiencing changes in their economies and their government policies (including, without
limitation, policies relating to foreign ownership, repatriation of profits, property and contractual rights and
planning and permit-granting regimes) that may affect the Group’s investments in these countries.
The procedural safeguards of the legal and regulatory regimes in these countries are still developing and,
therefore, existing laws and regulations may be applied inconsistently. Often, fundamental contract, property
and corporate laws and regulatory regimes may have only recently become effective, which may result in
ambiguities, inconsistencies and anomalies in their interpretation and enforcement. The Group has taken
steps to mitigate these risks by entering into contracts that provide for alternative dispute resolution
procedures. In addition, legislation may often contemplate implementing regulations that have not yet been
promulgated, leaving gaps in the regulatory infrastructure.
Moreover, in certain circumstances, it may not be possible to obtain the legal remedies provided under
current laws and regulations in a timely manner, or at all. The judicial systems are influenced by principles
of Islamic law and judicial precedents may have no binding effect on subsequent decisions and legislation.
In addition, enforcement of court orders can, in practice, be very difficult in some of these countries. All of
these factors make judicial decisions in many of the countries in which the Group operates or may operate
in the future difficult to predict and effective redress uncertain.
Instability and uncertainties relating to the legal and regulatory environment in the countries in which the
Group operates or may operate in the future could have a material adverse effect on the Group’s business,
financial condition and results of operations.
34
Unlawful or arbitrary government action may have a material adverse effect on the Group’s business
Governmental authorities in some countries in which the Group operates or may operate in the future may
have a high degree of discretion and, at times, act selectively or arbitrarily, and sometimes I
http://www.actionhotels.com/cms/resources/ir-documents/admission-document.pdf
Sign In
Follow the stocks
