Different countries operate under different economies.
Of those regimes, you have countries which are more stable resulting in a predictable economy. Naturally, you also have countries which do not fare as well with an ever-fluctuating economy.
Businessmen are scared for the future of their companies, so they essentially want to have their master holding company in a jurisdiction which gives them protection. A jurisdiction with defined and clear rights with adequate laws and transparency of the judicial process if something goes wrong.
This happens in more developed countries.
If you decide that you want to have a holding company either for your business or for your assets it does help if you are a resident or citizen of that country... being a citizen of that country ensures that in the eyes of the law you are recognized.
If you transact business where there is a lot of boom and bust cycles, it can be quite exhausting for your business stability. We’ve seen countries in South America, the Southern part of the EU, Asia and in the Middle East passing through instability and time to time.
No country is immune to the nature of the economy; this is a fact of life.
There a few countries in the world which have survived incredibly long periods without a recession but the fact of the matter is that sooner or later, there tends to be a downturn.
How severe is the downturn tends to depend on the country.
For example, in the EU the last two countries to get hit from the financial crisis in 2008 were Germany and Malta and the first to get out where again, Germany and Malta. One looks at economic stability is not the possibility that the country doesn’t experience a slowdown or recession because realistically every country will pass through it.
However, t would help if you took note of the severity of those fluctuations of those downturns and crashes between extremely good times and bad times.
If you had to plot it on a chart - more moderate growth with the more moderate corrections. Rather than fast growth and high-speed crashes.
Taking a country in the Mediterranean as an example, Malta offers a favourable jurisdiction for businesses when relocating to Malta.