Hdeel Abdelhady Articles

Doing Business in Emerging Markets

Strong Governance and Compliance Creates Value for Emerging Markets Firms

Like some emerging economy countries, some EMEs that have had prior success and are financially strong are, at the enterprise level, in transitional phases. These EMEs:(1) are facing changing global and local economic and operating conditions;  (2) have newfound global visibility that invites greater public scrutiny; (3) have strategic, next level goals; and, (4) must navigate established and evolving standards of business conduct that are being set and enforced by diverse external constituencies and growing more material to the bottom line. To adapt to changing conditions and advance their objectives efficiently—i.e., by proactively limiting reputational, commercial, legal and other risks and costs and capitalizing on opportunities that favor well-governed enterprises—these EMEs need not just strong governance, but entrepreneurial governance.

Sanctions

Non-Dollar Trade Could Curtail the Global Reach of U.S. Sanctions and Other Laws

American economic and financial heft facilitates the extraterritorial reach of U.S. law. For example, global transactions that are denominated in U.S. dollars and processed through the U.S. financial system “touch” the United States, come within its jurisdiction and create a jurisdictional nexus to foreign parties, property and events associated with those transactions.

Russia Sanctions

OFAC Directive 1: Financing, Debt & Equity Prohibitions

On July 30, 2015, the Office of Foreign Assets Control (OFAC) made explicit the sanctioned status of certain entities operating in Russia’s financial services sector by adding them to the Sectoral Sanctions Identifications List (SSIL).The SSIL identifies parties subject to U.S. Sanctions targeting specific sectors of the Russian economy (Sectoral Sanctions) within the framework of Ukraine/Russia-related sanctions adopted in response to events in Ukraine. Currently Russia’s financial services, defense, and energy sectors are targeted. Nevertheless, they may encounter legal, commercial, or reputational risk in the context of current or planned business with or involving a sanctioned entity, whether listed on the SSIL (or another sanctions list) or sanctioned as a matter of law (such as under the 50% Rule).

Sanctions

Non-Dollar Trade May Stem Extraterritorial Reach of U.S. Law

The United States is singularly positioned (and willing) to leverage its economic and financial strength to enforce its laws and policies globally. American economic and financial heft facilitates the extraterritorial reach of U.S. law. Global transactions that are denominated in U.S. dollars and processed through the U.S. financial system “touch” the United States, come within its jurisdiction and create a jurisdictional nexus to foreign parties, property and events associated with those transactions.The rise of the renminbi and non-dollar trade and finance channels such as One Belt One Road, the BRICs Bank, and the Asian Infrastructure Investment Bank could curtail the global, extraterritorial reach of U.S. law.

MassPoint Legal and Strategy Advisory PLLC

Egypt Needs a Mindset Revolution (to transition economically)

Ultimately, the success of Egypt’s political transition will be measured not at the ballot box, but at the breadlines. Egypt needs a national economic vision to transform its political aspirations into reality. But first the country must undergo a national mindset revolution. Egyptians must ask themselves and their leaders the clichéd question: where do they see themselves in the next five, 15, or 50 years? Will Egypt remain a foreign aid recipient whose fortunes twist in unpredictable political winds? Will its economic path continue to be paved with off-the-rack structural adjustments thought up in the halls of the World Bank and International Monetary Fund? Will Egyptians continue to accept — and expect — economic mediocrity? The answers, and Egypt’s future, will depend on the health of the national mindset.

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