the effects of the 2008 financial crisis on the investment in the Gulf area specially on Qatar. - Research Paper Example

Only on StudentShare

Extract of sample
the effects of the 2008 financial crisis on the investment in the Gulf area specially on Qatar.

In this case, the decline in oil prices severely affected the foreign exchange earnings and led to low foreign investment capital inflows in Qatar economy. Qatar and other countries in the gulf area had accumulated vast cash reserves after the oil prices recorded a high of USD 148 per barrel in July 2008 due to a weak US dollars and geopolitical tensions that led to oil speculations (Casa, 2009). However, the last five months of 2008 saw decline in equity market activity and oil demand thus leading to 75 percent loss on the OPEC Reference Basket from USD 148 per barrel to USD 37.72 per barrel before the end of the year (Distr, 2009). Thesis statement: the 2008 financial crisis negatively affected investments in Qatar through tightening of credit, decline in global oil demand and subsequent slowdown of the real estate and stock markets in the economy. Credit crunch Despite the high liquidity level of the main financial institutions in Qatar and decline in interest rates before the onset of the 2008 financial crisis, the availability of credit for investment purposes declined during the financial crisis due to high-risk aversion by the banks (Casa, 2009). ...
Download paper

Summary

The effects of the 2008 financial crisis on the investment in the Gulf area especially Qatar Name: University: The effects of the 2008 financial crisis on the investment in the Gulf area-Qatar Introduction The 2008 financial crisis negatively affected investments in the Gulf area and especially Qatar…
Author : beth61

Related Essays

2008 Financial Crisis
In 2007, the US entered a financial crisis, consequences of which are still suffered by the entire country. Until the crisis began and unraveled in 2008, most economists were optimistic. The US economy was growing, markets were considered to be liquid and employment levels were high. However, within one year, everything changed. According to Reavis, “the collapse of the U.S. housing market triggered the financial crisis” (3). Weak financial regulatory structure, lack of understanding the innovations in the financial sector, over borrowing and securitization of mortgages are seen as main...
11 pages (2761 words) Term Paper
2008:2012 Spanish financial crisis
In the wake of the bank failures, large reductions in the equities’ market value and commodities, and declining stock indexes, national finance ministers, financial industry players, and world political leaders coordinated their efforts towards mitigating the effects of the crisis (Pomfret 6). It is no doubt that the global financial crisis had devastating economic, social, and even political impacts across the world. Most of the European countries were greatly affected by the crisis, Spain being one of the countries that it severely hit. I was in Spain (Barcelona and Madrid) for two months...
13 pages (3263 words) Essay
Hedge Funds and Their Role in 2008 Financial Crisis
They are not regulated in the same sense as mutual funds. Mostly, high net worth individuals and some pension funds invest in hedge funds. It is not mandatory for them to be registered with the Securities and Exchange Commission because they are not supposed to provide information regarding their operation and valuation in public. The paper tries to explore the early history of hedge funds and how prima facie they are different from mutual funds. The paper also focuses on their role and the impact they created during 2008 financial crisis and also what regulatory measures are currently in...
3 pages (753 words) Essay
Changes in Gulf banking industry after global financial crisis
Conclusion ...
4 pages (1004 words) Research Paper
the effects of the 2008 financial crisis on the investment in the Gulf area and Qatar
While closely evaluating the investment activities of Gulf countries including Qatar during 2008 financial crisis and post-recession period, it seems that the global financial crisis did not affect the Gulf region’s investment sector much when compared to other regions. Recession 2008: Impact on the Arab Region The crisis affected most of the Arab region also causing a significant decline in financial markets. Despite the region’s potential economic sources like oil revenue, real estate investment, tourism, and housing, countries in the region became vulnerable to an economic slowdown...
4 pages (1004 words) Research Paper
the effects of the 2008 financial crisis on the investment in the Gulf area and Qatar(different copy)
The initial impact of the financial crisis was felt partly in some Arab states depending on their participation in the international markets (Qatar 6). Impact on Finance and Economy The 2008 global economic crisis affected the financial markets of countries in the Gulf region. In many states, the stock exchange index declined by nearly 62% in 2008. By 2009, the projected GDP growth rates had fallen from 3.5% to 0.5% (Rocha & Subika 71). In addition, the economic growth decreased by more than 3% in the same year. With the exception of Qatar and Yemen, most states in the gulf area have projected...
4 pages (1004 words) Research Paper
The Effects of the 2008 Financial Crisis on the Investment in the Gulf Area
The 2008 financial crisis brought in its wake the reduced inflow of foreign direct investment (FDI) with a measure reduction observed in 2009. As per the Kuwait newspaper, Al-Qabas, as many as 675 real estate projects were cancelled in Gulf countries with almost 75 percent of them belonged to UAE – a large portion being in Dubai. Dubai's real estate market has been highly buoyant since last couple of years and almost 25 percent of its GDP comes through its real estate industry. It is imperative that property market in Dubai has seen its worst fall during the crisis period. In the aftermath...
3 pages (753 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!