Middle East and Central Asia Department
©2010 International Monetary Fund
Production: IMF Multimedia Services Division
Khamis, May Y. (May Yusuf)
Impact of the global financial crisis on the Gulf Cooperation Council countries and challenges ahead : an update/prepared by May Khamis and Abdelhak Senhadji, with contributions from Joshua Charap and Serhan Cevik–Washington, D.c.: International Monetary Fund, 2010.
Includes bibliographical references.
1. Financial crises–Persian Gulf States. 2. Global Financial crisis, 2008-2009. 3. Finance–Persian Gulf States. 4. Finance–Persian Gulf States–Statistics. 5. Banks and banking–Persian Gulf States. 6. Nonbank financial institutions–Persian Gulf States. 7. Econonmic forecasting–Persian Gulf States. I. Senhadji Semlali, A. II. Charap, Joshua, 1963- III. Cevik, Serhan, IV. International Monetary Fund. V. Title.
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The authors would like to thank Masood Ahmed, Director of the Middle East and Central Asia Department (MCD); Alfred Kammer, Senior Advisor in MCD; and Ratna Sahay, Deputy Director in MCD, for their guidance, comments, and suggestions.
The opinions expressed in this publication are solely those of the authors and do not necessarily reflect the views of the International Monetary Fund, its Executive Directors, or the authorities of the countries of the Gulf Cooperation Council.
This paper updates the IMF publication Impact of the Global Financial Crisis on the Gulf Cooperation Council Countries and Challenges Ahead.1
The major risk to the outlook continues to be a protracted period of low oil prices, which may arise in connection with a slow global recovery. As of June 2010, the debt crisis in Dubai had had minimal spillovers to the rest of the Gulf Cooperation Council (GCC) countries, and the fallout from the sovereign debt crisis in Greece has had a limited financial impact on the region so far. In response to events in the Euro area, GCC policymakers have noted the need to evaluate lessons from the crisis, stating also that these developments do not necessarily imply a delay in the establishment of the GCC monetary union.