The Impact of Global Economic Crisis on the organizations in oil producing countries - Essay Example

Only on StudentShare

Extract of sample
The Impact of Global Economic Crisis on the organizations in oil producing countries

The economies in Middle East, which were then among the fastest growing in the world; primarily driven by the soaring crude oil prices, were first considered immune, but by 2009 it began affecting the region including Gulf Cooperation Council (GCC) States. Most of the economies including UAE, Qatar, Bahrain, and Kuwait suffered significantly, due to the steep decline in their housing markets, which formed the crux of economic development in these countries.
Saudi Arabia Economy: Saudi Arabia, which is the largest economy in the region, too suffered dearly due to its heavy dependent on crude oil, whose prices had retreated at record pace in 2009 (Berkmen et al., 2009). The impact of economic crisis was felt by the firms not only because of the dependence on oil, but also, as a result of numerous government controls over the main economic activities in the economy. The country has at least 25% market share of the world’s petroleum reserves, is regarded as the largest petroleum exporter in the world and plays a very crucial in OPEC deliberations and decision makings. The petroleum sector takes up to at least 55% of the GDP, 90% of export earnings and 45% of all budget revenue. 40% of this GDP is from the private sector. At least, 5.2 million workers play a vital role in the Economy of Saudi and especially in the service and oil sector. ...
Download paper


The impact of the financial crisis of 2008-2009 affected the global world with threats to long term objectives including the Millennium Development Goals. Developed Countries, Emerging Economies and Least Developed Countries are suffering the effects, as financial markets have collapsed…
Author : colecitlalli

Related Essays

The Impact of the Global Economic Crisis on Organisations in Oil-Producing Countries: A Case Study of SABIC
The microeconomic performance of firms within economies during any global crisis should be analyzed and used in conjunction with the macroeconomic indicators, to enable analysts and other experts to have more comprehensive informational data at their disposal to make critical decisions on the general overall economic performance of a country. ...
53 pages (13303 words) Dissertation
The relationship of board duality by comparing directors with their firms’ performance
According to the research findings in recent years, transparency has become an important aspect of corporate governance that allows investors and shareholders to observe the performance of the company. In this way, investors and stakeholders are aware of the internal conditions and functioning of the company. Brown and Caylor suggest that the significant relationship between corporate governance and performance is due to the controlling role of the shareholders. They stated that shareholders could elect a board of directors of their choice, which would help them to monitor management...
13 pages (3263 words) Dissertation
The impact of Oil price changes on the Gulf Council Countries (GCC) stock markets
The author has rightly presented that energy is one of the most important factors of global economy. A country, which has enough sources of energy, can be one of the richest countries of the world. At present oil is the primary and most used sources of energy in world. Gulf countries are the major sources of oil, so their economy is one of the strongest in the world. The changes of the world economy majorly depend on the changes of oil prices. When the oil price increases, then the manufacturers around the world has to incur more cost in the manufacturing process. The cost of transportation...
12 pages (3012 words) Dissertation
Impact of the Financial Crisis on Barclays Bank : A Case Study
[Accessed on April 10, 2012]. 22 Bibliography 26 Chapter 1: Introduction Background and the Motivation The latter half of the year 2008 had seen rapid weakening of the overall global economy and also established that no part in the world is inaccessible from turbulence in the worldwide financial markets. Though initially the crisis was thought to be one of solidity, distressing only a small number of organizations, it had developed to be a more extensive problem necessitating state involvement. The financial crisis went on to affect the banks and other financial services company across the...
20 pages (5020 words) Dissertation
The impact of the economic crisis in the Saudi economy.
The project deals with the impact of economic crisis in Saudi Arabia. Saudi Arabia is a key player in the scenario of international trade, imports and exports. The effect of the economic crisis in Saudi Arabia has been compared with the impacts on the leading economies of the world which provides a comprehensive picture of the global effects of the economic crisis. Introduction Saudi Arabia is an absolute monarchy and is ruled by King Abdallah Bin Abdul Aziz Al Saud who promises of greater political participation and has been able to win the confidence of majority of the Sunni population. The...
40 pages (10040 words) Dissertation
Global Financial Crisis: "the U.S. Gov Vs Lehman Brothers Bank" (Case Study)
Firms like Barclays and the Bank of America who were ready to bid on Lehman Brothers expected the government to intervene and cover part of Lehman’s losses. This was however never the case. (Dolezaleck 2009, p. 7-8). It was not appropriate for the US government to treat these institutions differently. This is because of the held perception that Lehman’s bankruptcy would affect the economy negatively. Even though it was argued that the amount of money to be lent was determined by collateral security, put in place during the period of financial crisis, it was impossible to determine the...
3 pages (753 words) Essay
Newagepublishers (2013) defined research as “systematized effort to gain new knowledge”. Hence, it is evident that the methodology adopted for a project plays an indispensible role in the success of the project. In addition, the research methodology of a study is also crucial towards the way the research objectives are addressed. The research methodology of a study is defined as the procedures that are put into practise by a researcher in order to accumulate and organize data and information for the principal purpose of making organizational decision or addressing the objective of a...
6 pages (1506 words) Dissertation
Got a tricky question? Receive an answer from students like you! Try us!