View of part of the Fujairah Corniche and the Hajar Mountains in the Background

Friday, October 10, 2008

Washington Post Says Gulf States Losing Swagger in Financial Crisis

Ellen Knickmeyer and Faiza Saleh Ambah of the Washington Post (10 October 2008) are reporting big changes in the financial strength of the Gulf States and in their mood:

“The oil-rich princes and financial titans of the Persian Gulf went into the week touting their immunity from the financial turmoil of the West, but stock markets in the region ended it posting sharp losses.”

“Stocks in Dubai, the boomtown of the Gulf, shed nearly a quarter of their value in four days of trading. Saudi Arabia's market, the largest in the Arab world, lost more than 17 percent. In all, the region's seven stock markets by Thursday had lost more than $160 billion in market capital, cutting their value to about $770 billion.”

“The lessons for Gulf oil states: Billions of dollars in oil surpluses may not be enough to fend off a global recession.”

Further details at this link:
Gulf States Lose their Swagger Amid Regionwide Sell Off, Washington Post, 10 October 2008.

Dr Geoff Pound

Image: Traders at the Dubai Stock Exchange.