The Financial Crisis of 2008 - 2009 and the Arab States Economies

Abstract

This paper will examine the impact of the global financial crisis on the Arab counties during the period (2008)(2009). The paper has shown that increasing inter-connected world economic and financial matters means more effects on countries with high exposure to the rest of the world.The study finds that the various economies of the Arab countries were impacted by the crisis. The impacts varied between the Arab countries according to the nature of their economies and the degree of openness and the association with the global economy. Some governments in the region have moved to reassure depositors that their money is safe in addition to the overall economic reforms carried out. The study classified Arab countries into three groups depending on their economies structure.The effects of the crisis spread to the Arab economies through several local and external factors. The paper found out that the direct impact of the crisis was less dramatic in the financial sectors of some Arab countries due to the low level of interlink ages with the international system. One important lesson from the crisis is to prevent financial contagion from crippling their domestic banking and non-banking financial sectors in addition to the needed work to restore macroeconomic stability and sustainable growth and to work together to face the current and future economic and financial crisis.

An Empirical Analysis for the Perceptions of Amman Stock Exchange’s Investors

“…of transactions and financial crisis along with investors' perceptions as measured by the stock index. By contrast, Al-Majali and Al-Assaf (2014), Mashal (2012) argued that the performance of Amman stock exchange was not impacted by the recent financial crisis due to the low integration of Jordanian economy along with the world economy. Therefore, the current research can induce that investors' perceptions were not impacted by this crisis during the long-run, due to the limited openness of Jordanian economy to the global economy.…”

Institutional Support of Ukraine’s Foreign Trade: The Context of the Middle East

“…Socio-economic development of the Middle East countries differs significantly, but they can be divided into three main groups: oil exporters, developing oil countries and oil-importing countries. The general trend for the region in recent years is a gradual strengthening of economic growth, after the slow growth observed in the post-crisis period (Mashal, 2012). Taking into account the geographical proximity of the Middle East markets and their potential capacity, the Government of Ukraine should pursue a strategy of cooperation with this region that promotes the strengthening of bilateral and multilateral trade, in particular through providing it with institutional support.…”

Macroeconomic Determinants of Non-Performing Loans: Case of Turkey and Saudi Arabia

“…Gulf Cooperative Council countries (GCC) have been affected by the crises to varying degrees. Mashal (2012) classifies Arab countries into three groups and the first is GCC characterized by open financial systems. They trade with other countries freely and they have a close connection with the global financial system and global markets.…”

“…As a GCC country, Saudi Arabia has witnessed a boom in its economy during 2003-2008, preceding the crisis, as a result of increases in oil revenues and foreign capital inflows. As Mashal (2012) indicates, in 2009, NPLs increased sharply and credit stagnated because of the 2008 crisis. Such relation shows us the importance of the macroeconomic conditions to the overall economy, particularly to the financial system and banking sector.…”