StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The effects of the 2008 financial crisis on the investment in the Gulf area especially on Qatar - Essay Example

Cite this document
Summary
Although there has been deep coverage of the impacts of global recession on the other parts of the worlds, the Gulf Area has been isolated from…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
The effects of the 2008 financial crisis on the investment in the Gulf area especially on Qatar
Read Text Preview

Extract of sample "The effects of the 2008 financial crisis on the investment in the Gulf area especially on Qatar"

Download file to see previous pages

The high unemployment rate and the collapse of the financial institutions cumulatively limited the potential of individuals and corporations to invest. The Gulf Area experienced a period of oil-boom during the period between 2003 and 2008, a time when the economy grew by double figures. Qatar was a major distributor of oil in the world and the rising demand underpinned the increase in its sales during this period. The impact of this is that there was reduced unemployment, rise in economic class and the growth of the gross domestic product (Khamis, Senhadji, Hasan, & International Monetary Fund, 2010).

On the other hand, the economic development resulted to increase in the public confidence and hence increased borrowing from monetary banks. The public’s incentive to invest and take advantage of the growing business opportunities led to the increase of loans from both public and private sector. As a result, the year 2007 marked the peak of economic debts in financial institutions. During this period also, the international monetary funds and the World Bank encouraged financial institutions to provide low interest loans for the local people to inspire investment (Siddiqi, 2013).

The negative impact of this is that the potential to invest became much higher than the available business opportunities, leading to business failure. The global recession affected the world at large and this resulted to an adjustment of the world economic situation. The reduction in the value of local currencies resulted in the decline of the purchasing power. The impact that this had is that there was reduced economic exchange in the international business market. Qatar experienced a period of reduced demand for oil from western countries, which resulted to reduction into its national income.

Consequently, the country experienced retarded economic growth, and the GDP

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The effects of the 2008 financial crisis on the investment in the Gulf Essay”, n.d.)
The effects of the 2008 financial crisis on the investment in the Gulf Essay. Retrieved from https://studentshare.org/finance-accounting/1647870-the-effects-of-the-2008-financial-crisis-on-the-investment-in-the-gulf-area-especially-on-qatar
(The Effects of the 2008 Financial Crisis on the Investment in the Gulf Essay)
The Effects of the 2008 Financial Crisis on the Investment in the Gulf Essay. https://studentshare.org/finance-accounting/1647870-the-effects-of-the-2008-financial-crisis-on-the-investment-in-the-gulf-area-especially-on-qatar.
“The Effects of the 2008 Financial Crisis on the Investment in the Gulf Essay”, n.d. https://studentshare.org/finance-accounting/1647870-the-effects-of-the-2008-financial-crisis-on-the-investment-in-the-gulf-area-especially-on-qatar.
  • Cited: 0 times

CHECK THESE SAMPLES OF The effects of the 2008 financial crisis on the investment in the Gulf area especially on Qatar

The Situation of Water Supply Crisis in Qatar

qatar and a few solutions to the problem and methodologies for providing water are also discussed.... The salient features and the application of the various alternative methods with respect to qatar are discussed separately in the following paragraphs.... qatar being one such region can also utilize its wastewater for fulfilling the increasing demand for water in the country.... Wastewater does not only fulfill the increasing water demand but it is also very effective in controlling water pollution and various water-borne diseases particularly in countries like qatar where people are unaware of the hygienic procedures through which they can stop water pollution....
5 Pages (1250 words) Term Paper

Destination Evaluation in the UAE

the Oman and the gulf of Persia.... This state located in the Saudi Arabian peninsula is also a prime member of the cooperation council of the gulf region joined by countries like Kuwait, Qatar, Oman and other Saudi Arabian regions including the United Arab Emirates.... The government of Bahrain to help encourage this wide flow of international tourists is continually working for the development of hotels and several tourism facilities inside the country with the active cooperation of the gulf Cooperation...
10 Pages (2500 words) Essay

Ethics and Financial Crisis of 2008

Running Header: Financial Crises of 2008 Name: “2008 Financial Crises' Date Module the 2008 financial crisis were one of the toughest economic crises faced by the big economy of United States of America.... (NY, 2009) Credit Default Swaps are one of the most risky instruments that were common in the United States of America's financial system prior to the 2008 financial crises.... MBS or Mortgage Backed Securities were another fancy term used in the era prior to the 2008 financial crises....
4 Pages (1000 words) Essay

Housing Markets in the Financial Crisis of 2008

In this essay “Housing Markets in the financial crisis of 2008” the causative circumstances of the bubble are described.... Also there is a discussion about how the various financial decisions coupled together with the shortage of proper structure for regulation.... In simple terms, the logic governing the growth of the housing bubble was one such that the wealthy were spending the money they had accumulated from the favorable stock markets (Baker, 2008, 73)....
11 Pages (2750 words) Essay

Growth Rate - Consumer Price Index for Qatar

qatar (2008-2012) Consumer Price Index of qatar for 2001 - 2009 2001 101.... Base Year 2000 = 100 Growth rate for CPI of qatar for 2005 - 2009 Base Year 2000 = 100 diff.... 6% deflation Consumer Price Index of qatar for 2001 - 2011 2001 83.... Base Year 2005 = 100 Growth rate for CPI of qatar for 2005 - 2009 Base Year 2005 = 100 diff.... 1% inflation ( The World Bank, 2012) qatar's economic progress was impressive from 2005 to 2009 in spite of the global recession in the later part of the period....
5 Pages (1250 words) Assignment

The Financial Crisis of 2008

In the 1930s, it was the greed of the common man that led to the Recession, while in 2008, it was the greed of the investment bankers and other financial wizards that led to the recession.... in the past thirty five years is supposed to be the underlying cause of the current financial crisis [Wisman &Barker, 2008].... Excess of anything is bad, especially greed.... He argues that the cause of the Great Depression in the 1930s was poor wage performance leading to large profits in search of few investment opportunities....
3 Pages (750 words) Essay

Causes of the 2007-08 Financial Crisis

the effects of the meltdown were felt quite deep down the social ladder.... The crisis came about in a chain reaction that started with the mixing of subprime and prime debt and passing the entire risk to the Causes for the 2007-08 financial crisis Deema Hamad almana 01651 ENGL 203 Dr, Tobias Christopher lee Qatar The effect that real e has on the economy of a country proves that it is important to the economy and has a direct effect of the performance of the economy of a country....
1 Pages (250 words) Essay

Foreign Investment in Qatar

The foreign businesses have to go through several procedures before being allowed investment in the country.... There are just a few laws that prohibit foreigners from doing business in qatar such as… Despite lucrative offers available in qatar for foreign investments, the regulation of foreign capital requires that 51% of the capital belongs to the Qatari citizens.... The foreign investment law that invites and protects the foreign Conclusion qatar has come a long way from pearl diving and fishing to becoming the crown jewel of the Middle East....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us