the effects of the 2008 financial crisis on the investment in the Gulf area and Qatar(different copy) - Research Paper Example

Only on StudentShare

Extract of sample
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 lower GDP growth rates. The cornerstone of Qatar’s’ economy is petroleum. Most of the government revenue, export earnings, and GDP are derived from oil reserves and gas exports. Qatar is the third producer and exporter of oil in the world making it the richest country in the world (Rocha & Subika 71). Effects on banking The banking sector in Qatar escaped the impact of the financial crisis. Most banks all over the world lost their role as creditors and financiers because of the crisis. Banks in Qatar posted big profits in the Gulf Cooperation Council markets in 2009 despite the financial crisis (Sheng 45). ...
Download paper

Summary

Name: Instructor: Course: Date: Effects of the 2008 financial crisis on the investment in the Gulf area especially in Qatar The global financial crisis affected the whole world though the impact has been severe in the Arab Countries. This comes as a surprise to many, considering that the Arab countries are rich in oil reserves…
Author : hauckkarine

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
The last financial crisis 2007-2009 has many implication on different markets , however there are some arguments that the gulf a
Therefore, the overall coursework of the research incorporates a qualitative research approach through analyzing different scholarly based articles, peer-reviewed journals and governmental reports in order to evidently justify the impact of financial crisis in Qatar and other GCC countries. The findings of the research identifies that the financial performance of Qatar and other GCC countries were significantly affected. The real estate and construction industries belonging to most of the GCC countries were highly affected by the US financial recession 2007-2009. However, the conventional...
12 pages (3012 words) Research Paper
Central Bank for GCC
International financial crisis in the recent years calls for monetary integration and regional cooperation of the countries for efficiently dealing with the crises and protecting the interests of the member countries. The monetary policies of a central bank plays pivotal role in regulating interest rates and inflation in the countries with a view to ensure economic growth. The monetary policies of a central bank have impact on various economic factors such as employment, liquidity in the system and stability of the currencies. Central bank proposed for the GCC countries aims at financial...
5 pages (1255 words) Research Paper
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...
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
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!