The Impact of the Global Economic Crisis on the Arab World
The Arab countries had experienced rapid changes in their economic fortunes in the year 2008. During the first half of 2008, oil, natural gas, and other commodity prices continued to rise rapidly, leading to huge gains. At the same time, they had to cope with rapidly rising food and raw material prices that threatened their economies and social stability. By July, the effects of the financial crisis and expectations of much lower global growth caused a collapse in oil prices. As a result, Arab oil exporters experienced a fall in hydrocarbon receipts, deterioration in their terms of trade, and declining surpluses on their balance of ...view middle of the document...
Economic growth has fallen sharply from nearly 8 percent in 2008 to under one percent.
Dubai Before November 2008
Dubai's amazing skyline with the Burj Dubai, one of the world's most expensive hotels, towering over the city
Dubai in 2009
The Building Boom Has Stopped
Sale of Dubai property bonds frozen
Nakheel, Dubai’s property developer and part of the heavily-indebted Dubai World conglomerate, has asked Nasdaq, a US stock exchange, to stop trading its bonds.
The bonds have been taken off the Dubai bourse, Nasdaq said on their website.
Markets in Dubai, part of the United Arab Emirates (UAE), had fallen 7.3 per cent by the end of trading.
Some major securities, including the construction and banking shares, fell to almost the 10 per cent maximum allowed.
Dubai World, the emirate’s investment arm, announced that it would seek a six-month freeze on debt repayments of almost $60 billion, prompting concerns about its economic health.
Billions in debt
Dubai World has $59bn of liabilities, a large proportion of the Gulf emirate’s total debt.
The combination of falling oil prices and reduced oil production will negatively impact the growth prospects of GCC countries in the period...