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the effects of the 2008 financial crisis on the investment in the Gulf area and Qatar(different copy) - Research Paper Example
Author : hauckkarine
Finance & Accounting
Pages 4 (1004 words)
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…
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). ...